Synopsys Inc (SNPS)
Financial leverage ratio
| Oct 31, 2024 | Jul 31, 2024 | Apr 30, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 13,073,600 | 11,648,700 | 11,011,800 | 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 |
| Total stockholders’ equity | US$ in thousands | 8,990,700 | 7,709,400 | 7,153,160 | 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 |
| Financial leverage ratio | 1.45 | 1.51 | 1.54 | 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 |
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 exhibited some fluctuations over the past few years, indicating changes in the company's capital structure. The ratio has generally been trending upwards, starting at 1.45 in October 2024 and reaching 1.74 in January 2020, before decreasing slightly to 1.71 as of October 2020. This upward trend suggests an increasing reliance on debt to finance the company's operations and growth.
However, since October 2020, the financial leverage ratio has shown some variability, fluctuating between 1.64 and 1.71. This could reflect changes in the company's debt levels, equity investments, or a combination of both. A higher financial leverage ratio indicates a higher proportion of debt in the company's capital structure, potentially leading to increased financial risk due to debt obligations.
It is important for investors and analysts to monitor the financial leverage ratio of Synopsys Inc closely to assess the company's financial stability and capacity to meet its debt obligations. Additionally, understanding the reasons behind the changes in the ratio can provide insights into the company's strategic decisions regarding capital structure and financing.
Peer comparison
Oct 31, 2024