Synopsys Inc (SNPS)

Financial leverage ratio

		Jan 31, 2024	Oct 31, 2023	Jul 31, 2023	Apr 30, 2023	Jan 31, 2023	Oct 31, 2022	Jul 31, 2022	Apr 30, 2022	Jan 31, 2022	Oct 31, 2021	Jul 31, 2021	Apr 30, 2021	Jan 31, 2021	Oct 31, 2020	Jul 31, 2020	Apr 30, 2020	Jan 31, 2020	Oct 31, 2019	Jul 31, 2019	Apr 30, 2019
Total assets	US$ in thousands	10,558,300	10,333,100	9,923,230	9,790,730	9,565,620	9,418,090	9,329,550	9,210,380	8,901,350	8,752,260	8,485,910	8,339,560	8,012,840	8,030,060	7,663,250	7,322,470	7,202,900	6,405,160	6,153,410	6,194,220
Total stockholders’ equity	US$ in thousands	6,670,980	6,147,310	5,958,560	5,831,860	5,636,750	5,515,720	5,604,030	5,564,310	5,386,770	5,295,140	5,151,020	5,088,140	4,882,250	4,907,400	4,595,920	4,275,090	4,148,830	4,083,010	3,933,810	3,909,570
Financial leverage ratio		1.58	1.68	1.67	1.68	1.70	1.71	1.66	1.66	1.65	1.65	1.65	1.64	1.64	1.64	1.67	1.71	1.74	1.57	1.56	1.58

January 31, 2024 calculation

Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $10,558,300K ÷ $6,670,980K
= 1.58

The financial leverage ratio of Synopsys, Inc. has fluctuated over the past eight quarters, ranging from a low of 1.58 in Q1 2024 to a high of 1.71 in Q4 2022. This ratio measures the company's level of debt relative to its equity and indicates the extent to which the company is utilizing debt financing.

A higher financial leverage ratio suggests that a greater portion of the company's assets are funded by debt rather than equity. In the case of Synopsys, Inc., the ratio has generally been above 1.60, indicating that the company relies more on debt to finance its operations and investments.

It is important to note that a high financial leverage ratio can indicate increased financial risk, as the company may face challenges in meeting its debt obligations, especially during economic downturns or periods of high interest rates. On the other hand, debt financing can also provide tax benefits and leverage opportunities for growth when managed effectively.

Overall, the trend in Synopsys, Inc.'s financial leverage ratio suggests that the company has maintained a moderate level of debt relative to equity in recent quarters, potentially striking a balance between leveraging opportunities for growth and managing financial risks.