Synopsys Inc (SNPS)
Financial leverage ratio
| Oct 31, 2024 | Oct 31, 2023 | Oct 31, 2022 | Oct 31, 2021 | Oct 31, 2020 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 13,073,600 | 10,333,100 | 9,418,090 | 8,752,260 | 8,030,060 |
| Total stockholders’ equity | US$ in thousands | 8,990,700 | 6,147,310 | 5,515,720 | 5,295,140 | 4,907,400 |
| Financial leverage ratio | 1.45 | 1.68 | 1.71 | 1.65 | 1.64 |
October 31, 2024 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $13,073,600K ÷ $8,990,700K
= 1.45
The financial leverage ratio of Synopsys Inc has shown varying levels over the past five years, ranging from 1.45 in October 2024 to 1.71 in October 2022. This ratio indicates the proportion of the company's total assets financed by debt compared to equity. A decreasing trend from 2022 to 2024 suggests a potential reduction in the company's reliance on debt financing and a stronger equity position. However, it is worth noting that the ratio remains above 1, indicating that debt plays a significant role in funding Synopsys Inc's operations. Overall, further analysis of the company's debt structure and financial strategy is necessary to fully understand the implications of these fluctuations in the financial leverage ratio.
Peer comparison
Oct 31, 2024