Synopsys Inc., adjustment to net income attributed to Synopsys

US$ in thousands

12 months ended:	Oct 31, 2023	Oct 31, 2022	Oct 31, 2021	Oct 31, 2020	Oct 31, 2019	Oct 31, 2018
Net income attributed to Synopsys (as reported)	1,229,888)	984,594)	757,516)	664,347)	532,367)	432,518)
Add: Change in unrealized gains (losses) on available-for-sale securities, net of tax	1,513)	(2,353)	(246)	—)	—)	—)
Net income attributed to Synopsys (adjusted)	1,231,401)	982,241)	757,270)	664,347)	532,367)	432,518)

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Synopsys Inc., adjusted profitability ratios

	Oct 31, 2023	Oct 31, 2022	Oct 31, 2021	Oct 31, 2020	Oct 31, 2019	Oct 31, 2018
Net Profit Margin
Reported net profit margin	21.05%	19.38%	18.02%	18.03%	15.84%	13.86%
Adjusted net profit margin	21.08%	19.33%	18.01%	18.03%	15.84%	13.86%
Return on Equity (ROE)
Reported ROE	20.01%	17.85%	14.31%	13.54%	13.04%	12.43%
Adjusted ROE	20.03%	17.81%	14.30%	13.54%	13.04%	12.43%
Return on Assets (ROA)
Reported ROA	11.90%	10.45%	8.66%	8.27%	8.31%	7.04%
Adjusted ROA	11.92%	10.43%	8.65%	8.27%	8.31%	7.04%

Profitability ratio	Description	The company
Adjusted net profit margin	An indicator of profitability, calculated as adjusted net income divided by revenue.	Synopsys Inc. adjusted net profit margin ratio improved from 2021 to 2022 and from 2022 to 2023.
Adjusted ROE	A profitability ratio calculated as adjusted net income divided by shareholders’ equity.	Synopsys Inc. adjusted ROE improved from 2021 to 2022 and from 2022 to 2023.
Adjusted ROA	A profitability ratio calculated as adjusted net income divided by total assets.	Synopsys Inc. adjusted ROA improved from 2021 to 2022 and from 2022 to 2023.

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	Oct 31, 2023	Oct 31, 2022	Oct 31, 2021	Oct 31, 2020	Oct 31, 2019	Oct 31, 2018
As Reported
Selected Financial Data (US$ in thousands)
Net income attributed to Synopsys	1,229,888)	984,594)	757,516)	664,347)	532,367)	432,518)
Revenue	5,842,619)	5,081,542)	4,204,193)	3,685,281)	3,360,694)	3,121,058)
Profitability Ratio
Net profit margin¹	21.05%	19.38%	18.02%	18.03%	15.84%	13.86%
Adjusted: Mark to Market Available-for-sale Securities
Selected Financial Data (US$ in thousands)
Adjusted net income attributed to Synopsys	1,231,401)	982,241)	757,270)	664,347)	532,367)	432,518)
Revenue	5,842,619)	5,081,542)	4,204,193)	3,685,281)	3,360,694)	3,121,058)
Profitability Ratio
Adjusted net profit margin²	21.08%	19.33%	18.01%	18.03%	15.84%	13.86%

2023 Calculations

¹ Net profit margin = 100 × Net income attributed to Synopsys ÷ Revenue
= 100 × 1,229,888 ÷ 5,842,619 = 21.05%

² Adjusted net profit margin = 100 × Adjusted net income attributed to Synopsys ÷ Revenue
= 100 × 1,231,401 ÷ 5,842,619 = 21.08%

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Profitability ratio	Description	The company
Adjusted net profit margin	An indicator of profitability, calculated as adjusted net income divided by revenue.	Synopsys Inc. adjusted net profit margin ratio improved from 2021 to 2022 and from 2022 to 2023.

	Oct 31, 2023	Oct 31, 2022	Oct 31, 2021	Oct 31, 2020	Oct 31, 2019	Oct 31, 2018
As Reported
Selected Financial Data (US$ in thousands)
Net income attributed to Synopsys	1,229,888)	984,594)	757,516)	664,347)	532,367)	432,518)
Total Synopsys stockholders’ equity	6,147,308)	5,515,725)	5,295,137)	4,907,404)	4,083,013)	3,479,152)
Profitability Ratio
ROE¹	20.01%	17.85%	14.31%	13.54%	13.04%	12.43%
Adjusted: Mark to Market Available-for-sale Securities
Selected Financial Data (US$ in thousands)
Adjusted net income attributed to Synopsys	1,231,401)	982,241)	757,270)	664,347)	532,367)	432,518)
Total Synopsys stockholders’ equity	6,147,308)	5,515,725)	5,295,137)	4,907,404)	4,083,013)	3,479,152)
Profitability Ratio
Adjusted ROE²	20.03%	17.81%	14.30%	13.54%	13.04%	12.43%

2023 Calculations

¹ ROE = 100 × Net income attributed to Synopsys ÷ Total Synopsys stockholders’ equity
= 100 × 1,229,888 ÷ 6,147,308 = 20.01%

² Adjusted ROE = 100 × Adjusted net income attributed to Synopsys ÷ Total Synopsys stockholders’ equity
= 100 × 1,231,401 ÷ 6,147,308 = 20.03%

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Profitability ratio	Description	The company
Adjusted ROE	A profitability ratio calculated as adjusted net income divided by shareholders’ equity.	Synopsys Inc. adjusted ROE improved from 2021 to 2022 and from 2022 to 2023.

	Oct 31, 2023	Oct 31, 2022	Oct 31, 2021	Oct 31, 2020	Oct 31, 2019	Oct 31, 2018
As Reported
Selected Financial Data (US$ in thousands)
Net income attributed to Synopsys	1,229,888)	984,594)	757,516)	664,347)	532,367)	432,518)
Total assets	10,333,131)	9,418,087)	8,752,260)	8,030,062)	6,405,160)	6,145,974)
Profitability Ratio
ROA¹	11.90%	10.45%	8.66%	8.27%	8.31%	7.04%
Adjusted: Mark to Market Available-for-sale Securities
Selected Financial Data (US$ in thousands)
Adjusted net income attributed to Synopsys	1,231,401)	982,241)	757,270)	664,347)	532,367)	432,518)
Total assets	10,333,131)	9,418,087)	8,752,260)	8,030,062)	6,405,160)	6,145,974)
Profitability Ratio
Adjusted ROA²	11.92%	10.43%	8.65%	8.27%	8.31%	7.04%

2023 Calculations

¹ ROA = 100 × Net income attributed to Synopsys ÷ Total assets
= 100 × 1,229,888 ÷ 10,333,131 = 11.90%

² Adjusted ROA = 100 × Adjusted net income attributed to Synopsys ÷ Total assets
= 100 × 1,231,401 ÷ 10,333,131 = 11.92%

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Profitability ratio	Description	The company
Adjusted ROA	A profitability ratio calculated as adjusted net income divided by total assets.	Synopsys Inc. adjusted ROA improved from 2021 to 2022 and from 2022 to 2023.

Synopsys Inc. (NASDAQ:SNPS)

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