Synopsys Inc (SNPS)
Solvency ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.01 | 0.01 | 0.02 | 0.02 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.01 | 0.01 | 0.02 | 0.02 | 0.03 | 0.03 |
| Debt-to-equity ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.01 | 0.01 | 0.02 | 0.02 | 0.03 | 0.03 |
| 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 |
Synopsys Inc's solvency ratios indicate a consistently strong financial position over the past few years, with low levels of debt relative to assets, capital, and equity. The debt-to-assets, debt-to-capital, and debt-to-equity ratios have all been at very low or negligible levels, suggesting that the company relies minimally on debt to finance its operations.
The financial leverage ratio has fluctuated slightly but has generally remained around the 1.6 to 1.7 range, indicating that the company has been able to effectively leverage its equity to support its assets and operations. This demonstrates a stable and sustainable capital structure, with a moderate level of financial leverage.
Overall, based on the solvency ratios analyzed, Synopsys Inc appears to have a solid financial standing with a prudent approach to managing its debt levels and maintaining a healthy balance between debt and equity in its capital structure.
Coverage ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Interest coverage | 43.72 | 84.21 | 200.19 | 670.98 | 1,116.06 | 874.32 | 750.70 | 737.13 | 661.58 | 461.67 | 398.37 | 306.89 | 240.58 | 262.96 | 255.25 | 168.66 | 125.33 | 107.27 | 71.64 | 58.18 |
The interest coverage ratio for Synopsys Inc has shown a fluctuating trend over the past few years. Starting from a low of 58.18 in January 2020, the ratio steadily increased to reach a peak of 1116.06 in January 2024, indicating a substantial improvement in the company's ability to cover its interest expenses with operating income.
However, after reaching its peak, the ratio began to decline, albeit remaining at relatively high levels. The latest interest coverage ratio as of October 2024 stands at 43.72, which is still considered healthy and reflects the company's strong capability to meet its interest obligations.
Overall, Synopsys Inc has maintained a robust interest coverage ratio over the period under review, suggesting a solid financial position and effective management of debt-related obligations.