Synopsys Inc (SNPS)

Financial leverage ratio

		Oct 31, 2023	Oct 31, 2022	Oct 31, 2021	Oct 31, 2020	Oct 31, 2019
Total assets	US$ in thousands	10,333,100	9,418,090	8,752,260	8,030,060	6,405,160
Total stockholders’ equity	US$ in thousands	6,147,310	5,515,720	5,295,140	4,907,400	4,083,010
Financial leverage ratio		1.68	1.71	1.65	1.64	1.57

October 31, 2023 calculation

Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $10,333,100K ÷ $6,147,310K
= 1.68

The financial leverage ratio for Synopsys, Inc. has displayed some variability over the past five years. The ratio, which measures the extent of the company's reliance on debt financing, stood at 1.68 as of October 31, 2023, showing a slight improvement from the previous year's figure of 1.71. This suggests that the company's dependence on debt to finance its operations has decreased slightly, which could be indicative of a more conservative capital structure. Looking further back, the ratio has experienced fluctuations, with a notable increase in 2022 compared to 2021, followed by a modest decline in 2023. Overall, the trend indicates that Synopsys, Inc. has maintained a relatively stable financial leverage position, balancing its use of debt to support growth and investment opportunities without incurring excessive risk.