Analysis of Liquidity Ratios
Liquidity ratios measure the company ability to meet its short-term obligations.
Liquidity Ratios (Summary)
Synopsys Inc., liquidity ratios
Based on: 10-K (reporting date: 2023-10-31), 10-K (reporting date: 2022-10-31), 10-K (reporting date: 2021-10-31), 10-K (reporting date: 2020-10-31), 10-K (reporting date: 2019-10-31), 10-K (reporting date: 2018-10-31).
| Liquidity ratio | Description | The company |
|---|---|---|
| Current ratio | A liquidity ratio calculated as current assets divided by current liabilities. | Synopsys Inc. current ratio deteriorated from 2021 to 2022 but then improved from 2022 to 2023 not reaching 2021 level. |
| Quick ratio | A liquidity ratio calculated as (cash plus short-term marketable investments plus receivables) divided by current liabilities. | Synopsys Inc. quick ratio deteriorated from 2021 to 2022 and from 2022 to 2023. |
| Cash ratio | A liquidity ratio calculated as (cash plus short-term marketable investments) divided by current liabilities. | Synopsys Inc. cash ratio deteriorated from 2021 to 2022 and from 2022 to 2023. |
Current Ratio
Synopsys Inc., current ratio calculation, comparison to benchmarks
| Oct 31, 2023 | Oct 31, 2022 | Oct 31, 2021 | Oct 31, 2020 | Oct 31, 2019 | Oct 31, 2018 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | |||||||
| Current assets | 3,430,624) | 3,012,669) | 2,808,341) | 2,549,217) | 1,738,917) | 1,543,797) | |
| Current liabilities | 2,985,451) | 2,774,499) | 2,413,484) | 2,139,922) | 1,752,453) | 2,102,415) | |
| Liquidity Ratio | |||||||
| Current ratio1 | 1.15 | 1.09 | 1.16 | 1.19 | 0.99 | 0.73 | |
| Benchmarks | |||||||
| Current Ratio, Competitors2 | |||||||
| Accenture PLC | 1.30 | 1.23 | 1.25 | 1.40 | 1.40 | 1.34 | |
| Adobe Inc. | 1.34 | 1.11 | 1.25 | 1.48 | 0.79 | 1.13 | |
| International Business Machines Corp. | 0.96 | 0.92 | 0.88 | 0.98 | 1.02 | — | |
| Intuit Inc. | 1.47 | 1.39 | 1.94 | 2.26 | 1.83 | 1.14 | |
| Microsoft Corp. | 1.77 | 1.78 | 2.08 | 2.52 | 2.53 | 2.90 | |
| Oracle Corp. | 0.91 | 1.62 | 2.30 | 3.03 | 2.49 | 3.96 | |
| Palo Alto Networks Inc. | 0.78 | 0.77 | 0.91 | 1.91 | 1.78 | 1.93 | |
| Salesforce Inc. | 1.02 | 1.05 | 1.23 | 1.08 | 0.95 | — | |
| ServiceNow Inc. | 1.06 | 1.11 | 1.05 | 1.21 | 1.03 | — | |
| Current Ratio, Sector | |||||||
| Software & Services | 1.37 | 1.42 | 1.67 | 1.92 | 1.85 | — | |
| Current Ratio, Industry | |||||||
| Information Technology | 1.46 | 1.44 | 1.64 | 1.85 | 1.77 | — | |
Based on: 10-K (reporting date: 2023-10-31), 10-K (reporting date: 2022-10-31), 10-K (reporting date: 2021-10-31), 10-K (reporting date: 2020-10-31), 10-K (reporting date: 2019-10-31), 10-K (reporting date: 2018-10-31).
1 2023 Calculation
Current ratio = Current assets ÷ Current liabilities
= 3,430,624 ÷ 2,985,451 = 1.15
2 Click competitor name to see calculations.
| Liquidity ratio | Description | The company |
|---|---|---|
| Current ratio | A liquidity ratio calculated as current assets divided by current liabilities. | Synopsys Inc. current ratio deteriorated from 2021 to 2022 but then improved from 2022 to 2023 not reaching 2021 level. |
Quick Ratio
Synopsys Inc., quick ratio calculation, comparison to benchmarks
| Oct 31, 2023 | Oct 31, 2022 | Oct 31, 2021 | Oct 31, 2020 | Oct 31, 2019 | Oct 31, 2018 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | |||||||
| Cash and cash equivalents | 1,438,913) | 1,417,608) | 1,432,840) | 1,235,653) | 728,597) | 723,115) | |
| Short-term investments | 151,639) | 147,913) | 147,949) | —) | —) | —) | |
| Accounts receivable, net | 946,967) | 796,091) | 568,501) | 780,709) | 553,895) | 554,217) | |
| Total quick assets | 2,537,519) | 2,361,612) | 2,149,290) | 2,016,362) | 1,282,492) | 1,277,332) | |
| Current liabilities | 2,985,451) | 2,774,499) | 2,413,484) | 2,139,922) | 1,752,453) | 2,102,415) | |
| Liquidity Ratio | |||||||
| Quick ratio1 | 0.85 | 0.85 | 0.89 | 0.94 | 0.73 | 0.61 | |
| Benchmarks | |||||||
| Quick Ratio, Competitors2 | |||||||
| Accenture PLC | 1.18 | 1.12 | 1.14 | 1.29 | 1.29 | 1.24 | |
| Adobe Inc. | 1.22 | 1.00 | 1.11 | 1.34 | 0.70 | 1.06 | |
| International Business Machines Corp. | 0.80 | 0.73 | 0.67 | 0.83 | 0.87 | — | |
| Intuit Inc. | 1.25 | 1.17 | 1.65 | 2.04 | 1.44 | 0.86 | |
| Microsoft Corp. | 1.54 | 1.57 | 1.90 | 2.33 | 2.35 | 2.74 | |
| Oracle Corp. | 0.74 | 1.43 | 2.15 | 2.83 | 2.31 | 3.78 | |
| Palo Alto Networks Inc. | 0.72 | 0.75 | 0.88 | 1.85 | 1.72 | 1.81 | |
| Salesforce Inc. | 0.90 | 0.93 | 1.11 | 0.95 | 0.82 | — | |
| ServiceNow Inc. | 1.00 | 1.06 | 1.01 | 1.16 | 0.98 | — | |
| Quick Ratio, Sector | |||||||
| Software & Services | 1.19 | 1.25 | 1.51 | 1.76 | 1.69 | — | |
| Quick Ratio, Industry | |||||||
| Information Technology | 1.17 | 1.15 | 1.38 | 1.60 | 1.55 | — | |
Based on: 10-K (reporting date: 2023-10-31), 10-K (reporting date: 2022-10-31), 10-K (reporting date: 2021-10-31), 10-K (reporting date: 2020-10-31), 10-K (reporting date: 2019-10-31), 10-K (reporting date: 2018-10-31).
1 2023 Calculation
Quick ratio = Total quick assets ÷ Current liabilities
= 2,537,519 ÷ 2,985,451 = 0.85
2 Click competitor name to see calculations.
| Liquidity ratio | Description | The company |
|---|---|---|
| Quick ratio | A liquidity ratio calculated as (cash plus short-term marketable investments plus receivables) divided by current liabilities. | Synopsys Inc. quick ratio deteriorated from 2021 to 2022 and from 2022 to 2023. |
Cash Ratio
Synopsys Inc., cash ratio calculation, comparison to benchmarks
| Oct 31, 2023 | Oct 31, 2022 | Oct 31, 2021 | Oct 31, 2020 | Oct 31, 2019 | Oct 31, 2018 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | |||||||
| Cash and cash equivalents | 1,438,913) | 1,417,608) | 1,432,840) | 1,235,653) | 728,597) | 723,115) | |
| Short-term investments | 151,639) | 147,913) | 147,949) | —) | —) | —) | |
| Total cash assets | 1,590,552) | 1,565,521) | 1,580,789) | 1,235,653) | 728,597) | 723,115) | |
| Current liabilities | 2,985,451) | 2,774,499) | 2,413,484) | 2,139,922) | 1,752,453) | 2,102,415) | |
| Liquidity Ratio | |||||||
| Cash ratio1 | 0.53 | 0.56 | 0.65 | 0.58 | 0.42 | 0.34 | |
| Benchmarks | |||||||
| Cash Ratio, Competitors2 | |||||||
| Accenture PLC | 0.50 | 0.45 | 0.52 | 0.67 | 0.55 | 0.50 | |
| Adobe Inc. | 0.95 | 0.75 | 0.84 | 1.09 | 0.51 | 0.75 | |
| International Business Machines Corp. | 0.39 | 0.28 | 0.22 | 0.36 | 0.24 | — | |
| Intuit Inc. | 0.97 | 0.90 | 1.46 | 2.00 | 1.39 | 0.81 | |
| Microsoft Corp. | 1.07 | 1.10 | 1.47 | 1.89 | 1.93 | 2.29 | |
| Oracle Corp. | 0.44 | 1.12 | 1.93 | 2.50 | 2.03 | 3.50 | |
| Palo Alto Networks Inc. | 0.31 | 0.44 | 0.57 | 1.39 | 1.37 | 1.59 | |
| Salesforce Inc. | 0.48 | 0.48 | 0.67 | 0.54 | 0.39 | — | |
| ServiceNow Inc. | 0.66 | 0.71 | 0.67 | 0.83 | 0.61 | — | |
| Cash Ratio, Sector | |||||||
| Software & Services | 0.75 | 0.81 | 1.10 | 1.33 | 1.23 | — | |
| Cash Ratio, Industry | |||||||
| Information Technology | 0.75 | 0.72 | 0.96 | 1.19 | 1.11 | — | |
Based on: 10-K (reporting date: 2023-10-31), 10-K (reporting date: 2022-10-31), 10-K (reporting date: 2021-10-31), 10-K (reporting date: 2020-10-31), 10-K (reporting date: 2019-10-31), 10-K (reporting date: 2018-10-31).
1 2023 Calculation
Cash ratio = Total cash assets ÷ Current liabilities
= 1,590,552 ÷ 2,985,451 = 0.53
2 Click competitor name to see calculations.
| Liquidity ratio | Description | The company |
|---|---|---|
| Cash ratio | A liquidity ratio calculated as (cash plus short-term marketable investments) divided by current liabilities. | Synopsys Inc. cash ratio deteriorated from 2021 to 2022 and from 2022 to 2023. |