Analysis of Solvency Ratios
Solvency ratios also known as long-term debt ratios measure a company ability to meet long-term obligations.
Solvency Ratios (Summary)
Synopsys Inc., solvency 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).
| Solvency ratio | Description | The company |
|---|---|---|
| Debt to equity ratio | A solvency ratio calculated as total debt divided by total shareholders’ equity. | Synopsys Inc. debt to equity ratio improved from 2021 to 2022 and from 2022 to 2023. |
| Debt to equity ratio (including operating lease liability) | A solvency ratio calculated as total debt (including operating lease liability) divided by total shareholders’ equity. | Synopsys Inc. debt to equity ratio (including operating lease liability) improved from 2021 to 2022 and from 2022 to 2023. |
| Debt to capital ratio | A solvency ratio calculated as total debt divided by total debt plus shareholders’ equity. | Synopsys Inc. debt to capital ratio improved from 2021 to 2022 and from 2022 to 2023. |
| Debt to capital ratio (including operating lease liability) | A solvency ratio calculated as total debt (including operating lease liability) divided by total debt (including operating lease liability) plus shareholders’ equity. | Synopsys Inc. debt to capital ratio (including operating lease liability) improved from 2021 to 2022 and from 2022 to 2023. |
| Debt to assets ratio | A solvency ratio calculated as total debt divided by total assets. | Synopsys Inc. debt to assets ratio improved from 2021 to 2022 and from 2022 to 2023. |
| Debt to assets ratio (including operating lease liability) | A solvency ratio calculated as total debt (including operating lease liability) divided by total assets. | Synopsys Inc. debt to assets ratio (including operating lease liability) improved from 2021 to 2022 and from 2022 to 2023. |
| Financial leverage ratio | A solvency ratio calculated as total assets divided by total shareholders’ equity. | Synopsys Inc. financial leverage ratio increased from 2021 to 2022 but then slightly decreased from 2022 to 2023. |
| Solvency ratio | Description | The company |
|---|---|---|
| Interest coverage ratio | A solvency ratio calculated as EBIT divided by interest payments. | Synopsys Inc. interest coverage ratio improved from 2021 to 2022 and from 2022 to 2023. |
| Fixed charge coverage ratio | A solvency ratio calculated as earnings before fixed charges and tax divided by fixed charges. | Synopsys Inc. fixed charge coverage ratio improved from 2021 to 2022 and from 2022 to 2023. |
Debt to Equity
Synopsys Inc., debt to equity 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) | |||||||
| Short-term debt | —) | —) | 74,992) | 27,084) | 17,614) | 343,769) | |
| Long-term debt | 18,078) | 20,824) | 25,094) | 100,823) | 120,093) | 125,535) | |
| Total debt | 18,078) | 20,824) | 100,086) | 127,907) | 137,707) | 469,304) | |
| Total Synopsys stockholders’ equity | 6,147,308) | 5,515,725) | 5,295,137) | 4,907,404) | 4,083,013) | 3,479,152) | |
| Solvency Ratio | |||||||
| Debt to equity1 | 0.00 | 0.00 | 0.02 | 0.03 | 0.03 | 0.13 | |
| Benchmarks | |||||||
| Debt to Equity, Competitors2 | |||||||
| Accenture PLC | 0.01 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | |
| Adobe Inc. | 0.22 | 0.29 | 0.28 | 0.31 | 0.39 | 0.44 | |
| International Business Machines Corp. | 2.51 | 2.32 | 2.74 | 2.99 | 3.02 | — | |
| Intuit Inc. | 0.35 | 0.42 | 0.21 | 0.66 | 0.12 | 0.19 | |
| Microsoft Corp. | 0.31 | 0.39 | 0.50 | 0.62 | 0.77 | 0.97 | |
| Oracle Corp. | 84.33 | — | 16.08 | 5.93 | 2.58 | 1.33 | |
| Palo Alto Networks Inc. | 1.14 | 17.51 | 5.08 | 2.80 | 0.90 | 1.99 | |
| Salesforce Inc. | 0.20 | 0.19 | 0.07 | 0.09 | 0.22 | — | |
| ServiceNow Inc. | 0.20 | 0.30 | 0.43 | 0.58 | 0.33 | — | |
| Debt to Equity, Sector | |||||||
| Software & Services | 0.65 | 0.72 | 0.84 | 0.97 | 1.06 | — | |
| Debt to Equity, Industry | |||||||
| Information Technology | 0.63 | 0.67 | 0.77 | 0.88 | 0.88 | — | |
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
Debt to equity = Total debt ÷ Total Synopsys stockholders’ equity
= 18,078 ÷ 6,147,308 = 0.00
2 Click competitor name to see calculations.
| Solvency ratio | Description | The company |
|---|---|---|
| Debt to equity ratio | A solvency ratio calculated as total debt divided by total shareholders’ equity. | Synopsys Inc. debt to equity ratio improved from 2021 to 2022 and from 2022 to 2023. |
Debt to Equity (including Operating Lease Liability)
Synopsys Inc., debt to equity (including operating lease liability) 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) | |||||||
| Short-term debt | —) | —) | 74,992) | 27,084) | 17,614) | 343,769) | |
| Long-term debt | 18,078) | 20,824) | 25,094) | 100,823) | 120,093) | 125,535) | |
| Total debt | 18,078) | 20,824) | 100,086) | 127,907) | 137,707) | 469,304) | |
| Current operating lease liabilities | 85,690) | 54,274) | 79,678) | 73,173) | —) | —) | |
| Long-term operating lease liabilities | 584,035) | 581,273) | 487,003) | 462,411) | —) | —) | |
| Total debt (including operating lease liability) | 687,803) | 656,371) | 666,767) | 663,491) | 137,707) | 469,304) | |
| Total Synopsys stockholders’ equity | 6,147,308) | 5,515,725) | 5,295,137) | 4,907,404) | 4,083,013) | 3,479,152) | |
| Solvency Ratio | |||||||
| Debt to equity (including operating lease liability)1 | 0.11 | 0.12 | 0.13 | 0.14 | 0.03 | 0.13 | |
| Benchmarks | |||||||
| Debt to Equity (including Operating Lease Liability), Competitors2 | |||||||
| Accenture PLC | 0.12 | 0.15 | 0.18 | 0.21 | 0.00 | 0.00 | |
| Adobe Inc. | 0.25 | 0.33 | 0.32 | 0.35 | 0.39 | 0.44 | |
| International Business Machines Corp. | 2.66 | 2.46 | 2.92 | 3.23 | 3.27 | — | |
| Intuit Inc. | 0.39 | 0.46 | 0.25 | 0.71 | 0.12 | 0.19 | |
| Microsoft Corp. | 0.39 | 0.47 | 0.58 | 0.69 | 0.84 | 1.06 | |
| Oracle Corp. | 88.84 | — | 16.61 | 6.10 | 2.58 | 1.33 | |
| Palo Alto Networks Inc. | 1.33 | 19.12 | 5.68 | 3.16 | 0.90 | 1.99 | |
| Salesforce Inc. | 0.25 | 0.25 | 0.15 | 0.18 | 0.22 | — | |
| ServiceNow Inc. | 0.30 | 0.44 | 0.60 | 0.75 | 0.53 | — | |
| Debt to Equity (including Operating Lease Liability), Sector | |||||||
| Software & Services | 0.74 | 0.82 | 0.95 | 1.08 | 1.12 | — | |
| Debt to Equity (including Operating Lease Liability), Industry | |||||||
| Information Technology | 0.69 | 0.73 | 0.84 | 0.95 | 0.90 | — | |
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
Debt to equity (including operating lease liability) = Total debt (including operating lease liability) ÷ Total Synopsys stockholders’ equity
= 687,803 ÷ 6,147,308 = 0.11
2 Click competitor name to see calculations.
| Solvency ratio | Description | The company |
|---|---|---|
| Debt to equity ratio (including operating lease liability) | A solvency ratio calculated as total debt (including operating lease liability) divided by total shareholders’ equity. | Synopsys Inc. debt to equity ratio (including operating lease liability) improved from 2021 to 2022 and from 2022 to 2023. |
Debt to Capital
Synopsys Inc., debt to capital 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) | |||||||
| Short-term debt | —) | —) | 74,992) | 27,084) | 17,614) | 343,769) | |
| Long-term debt | 18,078) | 20,824) | 25,094) | 100,823) | 120,093) | 125,535) | |
| Total debt | 18,078) | 20,824) | 100,086) | 127,907) | 137,707) | 469,304) | |
| Total Synopsys stockholders’ equity | 6,147,308) | 5,515,725) | 5,295,137) | 4,907,404) | 4,083,013) | 3,479,152) | |
| Total capital | 6,165,386) | 5,536,549) | 5,395,223) | 5,035,311) | 4,220,720) | 3,948,456) | |
| Solvency Ratio | |||||||
| Debt to capital1 | 0.00 | 0.00 | 0.02 | 0.03 | 0.03 | 0.12 | |
| Benchmarks | |||||||
| Debt to Capital, Competitors2 | |||||||
| Accenture PLC | 0.01 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | |
| Adobe Inc. | 0.18 | 0.23 | 0.22 | 0.24 | 0.28 | 0.31 | |
| International Business Machines Corp. | 0.72 | 0.70 | 0.73 | 0.75 | 0.75 | — | |
| Intuit Inc. | 0.26 | 0.30 | 0.17 | 0.40 | 0.10 | 0.16 | |
| Microsoft Corp. | 0.24 | 0.28 | 0.33 | 0.38 | 0.43 | 0.49 | |
| Oracle Corp. | 0.99 | 1.09 | 0.94 | 0.86 | 0.72 | 0.57 | |
| Palo Alto Networks Inc. | 0.53 | 0.95 | 0.84 | 0.74 | 0.47 | 0.67 | |
| Salesforce Inc. | 0.16 | 0.16 | 0.06 | 0.08 | 0.18 | — | |
| ServiceNow Inc. | 0.16 | 0.23 | 0.30 | 0.37 | 0.25 | — | |
| Debt to Capital, Sector | |||||||
| Software & Services | 0.39 | 0.42 | 0.46 | 0.49 | 0.51 | — | |
| Debt to Capital, Industry | |||||||
| Information Technology | 0.38 | 0.40 | 0.43 | 0.47 | 0.47 | — | |
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
Debt to capital = Total debt ÷ Total capital
= 18,078 ÷ 6,165,386 = 0.00
2 Click competitor name to see calculations.
| Solvency ratio | Description | The company |
|---|---|---|
| Debt to capital ratio | A solvency ratio calculated as total debt divided by total debt plus shareholders’ equity. | Synopsys Inc. debt to capital ratio improved from 2021 to 2022 and from 2022 to 2023. |
Debt to Capital (including Operating Lease Liability)
Synopsys Inc., debt to capital (including operating lease liability) 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) | |||||||
| Short-term debt | —) | —) | 74,992) | 27,084) | 17,614) | 343,769) | |
| Long-term debt | 18,078) | 20,824) | 25,094) | 100,823) | 120,093) | 125,535) | |
| Total debt | 18,078) | 20,824) | 100,086) | 127,907) | 137,707) | 469,304) | |
| Current operating lease liabilities | 85,690) | 54,274) | 79,678) | 73,173) | —) | —) | |
| Long-term operating lease liabilities | 584,035) | 581,273) | 487,003) | 462,411) | —) | —) | |
| Total debt (including operating lease liability) | 687,803) | 656,371) | 666,767) | 663,491) | 137,707) | 469,304) | |
| Total Synopsys stockholders’ equity | 6,147,308) | 5,515,725) | 5,295,137) | 4,907,404) | 4,083,013) | 3,479,152) | |
| Total capital (including operating lease liability) | 6,835,111) | 6,172,096) | 5,961,904) | 5,570,895) | 4,220,720) | 3,948,456) | |
| Solvency Ratio | |||||||
| Debt to capital (including operating lease liability)1 | 0.10 | 0.11 | 0.11 | 0.12 | 0.03 | 0.12 | |
| Benchmarks | |||||||
| Debt to Capital (including Operating Lease Liability), Competitors2 | |||||||
| Accenture PLC | 0.11 | 0.13 | 0.15 | 0.17 | 0.00 | 0.00 | |
| Adobe Inc. | 0.20 | 0.25 | 0.24 | 0.26 | 0.28 | 0.31 | |
| International Business Machines Corp. | 0.73 | 0.71 | 0.74 | 0.76 | 0.77 | — | |
| Intuit Inc. | 0.28 | 0.31 | 0.20 | 0.42 | 0.10 | 0.16 | |
| Microsoft Corp. | 0.28 | 0.32 | 0.37 | 0.41 | 0.46 | 0.51 | |
| Oracle Corp. | 0.99 | 1.08 | 0.94 | 0.86 | 0.72 | 0.57 | |
| Palo Alto Networks Inc. | 0.57 | 0.95 | 0.85 | 0.76 | 0.47 | 0.67 | |
| Salesforce Inc. | 0.20 | 0.20 | 0.13 | 0.16 | 0.18 | — | |
| ServiceNow Inc. | 0.23 | 0.31 | 0.37 | 0.43 | 0.35 | — | |
| Debt to Capital (including Operating Lease Liability), Sector | |||||||
| Software & Services | 0.43 | 0.45 | 0.49 | 0.52 | 0.53 | — | |
| Debt to Capital (including Operating Lease Liability), Industry | |||||||
| Information Technology | 0.41 | 0.42 | 0.46 | 0.49 | 0.47 | — | |
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
Debt to capital (including operating lease liability) = Total debt (including operating lease liability) ÷ Total capital (including operating lease liability)
= 687,803 ÷ 6,835,111 = 0.10
2 Click competitor name to see calculations.
| Solvency ratio | Description | The company |
|---|---|---|
| Debt to capital ratio (including operating lease liability) | A solvency ratio calculated as total debt (including operating lease liability) divided by total debt (including operating lease liability) plus shareholders’ equity. | Synopsys Inc. debt to capital ratio (including operating lease liability) improved from 2021 to 2022 and from 2022 to 2023. |
Debt to Assets
Synopsys Inc., debt to assets 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) | |||||||
| Short-term debt | —) | —) | 74,992) | 27,084) | 17,614) | 343,769) | |
| Long-term debt | 18,078) | 20,824) | 25,094) | 100,823) | 120,093) | 125,535) | |
| Total debt | 18,078) | 20,824) | 100,086) | 127,907) | 137,707) | 469,304) | |
| Total assets | 10,333,131) | 9,418,087) | 8,752,260) | 8,030,062) | 6,405,160) | 6,145,974) | |
| Solvency Ratio | |||||||
| Debt to assets1 | 0.00 | 0.00 | 0.01 | 0.02 | 0.02 | 0.08 | |
| Benchmarks | |||||||
| Debt to Assets, Competitors2 | |||||||
| Accenture PLC | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | |
| Adobe Inc. | 0.12 | 0.15 | 0.15 | 0.17 | 0.20 | 0.22 | |
| International Business Machines Corp. | 0.42 | 0.40 | 0.39 | 0.39 | 0.41 | — | |
| Intuit Inc. | 0.22 | 0.25 | 0.13 | 0.31 | 0.07 | 0.08 | |
| Microsoft Corp. | 0.16 | 0.18 | 0.21 | 0.24 | 0.27 | 0.31 | |
| Oracle Corp. | 0.67 | 0.69 | 0.64 | 0.62 | 0.52 | 0.44 | |
| Palo Alto Networks Inc. | 0.14 | 0.30 | 0.31 | 0.34 | 0.22 | 0.33 | |
| Salesforce Inc. | 0.12 | 0.12 | 0.04 | 0.06 | 0.11 | — | |
| ServiceNow Inc. | 0.09 | 0.11 | 0.15 | 0.19 | 0.12 | — | |
| Debt to Assets, Sector | |||||||
| Software & Services | 0.25 | 0.26 | 0.28 | 0.31 | 0.32 | — | |
| Debt to Assets, Industry | |||||||
| Information Technology | 0.26 | 0.26 | 0.28 | 0.30 | 0.31 | — | |
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
Debt to assets = Total debt ÷ Total assets
= 18,078 ÷ 10,333,131 = 0.00
2 Click competitor name to see calculations.
| Solvency ratio | Description | The company |
|---|---|---|
| Debt to assets ratio | A solvency ratio calculated as total debt divided by total assets. | Synopsys Inc. debt to assets ratio improved from 2021 to 2022 and from 2022 to 2023. |
Debt to Assets (including Operating Lease Liability)
Synopsys Inc., debt to assets (including operating lease liability) 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) | |||||||
| Short-term debt | —) | —) | 74,992) | 27,084) | 17,614) | 343,769) | |
| Long-term debt | 18,078) | 20,824) | 25,094) | 100,823) | 120,093) | 125,535) | |
| Total debt | 18,078) | 20,824) | 100,086) | 127,907) | 137,707) | 469,304) | |
| Current operating lease liabilities | 85,690) | 54,274) | 79,678) | 73,173) | —) | —) | |
| Long-term operating lease liabilities | 584,035) | 581,273) | 487,003) | 462,411) | —) | —) | |
| Total debt (including operating lease liability) | 687,803) | 656,371) | 666,767) | 663,491) | 137,707) | 469,304) | |
| Total assets | 10,333,131) | 9,418,087) | 8,752,260) | 8,030,062) | 6,405,160) | 6,145,974) | |
| Solvency Ratio | |||||||
| Debt to assets (including operating lease liability)1 | 0.07 | 0.07 | 0.08 | 0.08 | 0.02 | 0.08 | |
| Benchmarks | |||||||
| Debt to Assets (including Operating Lease Liability), Competitors2 | |||||||
| Accenture PLC | 0.06 | 0.07 | 0.08 | 0.09 | 0.00 | 0.00 | |
| Adobe Inc. | 0.14 | 0.17 | 0.17 | 0.19 | 0.20 | 0.22 | |
| International Business Machines Corp. | 0.44 | 0.42 | 0.42 | 0.43 | 0.45 | — | |
| Intuit Inc. | 0.24 | 0.27 | 0.16 | 0.33 | 0.07 | 0.08 | |
| Microsoft Corp. | 0.19 | 0.21 | 0.25 | 0.27 | 0.30 | 0.34 | |
| Oracle Corp. | 0.71 | 0.73 | 0.66 | 0.64 | 0.52 | 0.44 | |
| Palo Alto Networks Inc. | 0.16 | 0.33 | 0.35 | 0.38 | 0.22 | 0.33 | |
| Salesforce Inc. | 0.15 | 0.15 | 0.10 | 0.11 | 0.11 | — | |
| ServiceNow Inc. | 0.13 | 0.17 | 0.21 | 0.24 | 0.19 | — | |
| Debt to Assets (including Operating Lease Liability), Sector | |||||||
| Software & Services | 0.29 | 0.30 | 0.32 | 0.34 | 0.34 | — | |
| Debt to Assets (including Operating Lease Liability), Industry | |||||||
| Information Technology | 0.28 | 0.29 | 0.31 | 0.33 | 0.32 | — | |
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
Debt to assets (including operating lease liability) = Total debt (including operating lease liability) ÷ Total assets
= 687,803 ÷ 10,333,131 = 0.07
2 Click competitor name to see calculations.
| Solvency ratio | Description | The company |
|---|---|---|
| Debt to assets ratio (including operating lease liability) | A solvency ratio calculated as total debt (including operating lease liability) divided by total assets. | Synopsys Inc. debt to assets ratio (including operating lease liability) improved from 2021 to 2022 and from 2022 to 2023. |
Financial Leverage
Synopsys Inc., financial leverage 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) | |||||||
| Total assets | 10,333,131) | 9,418,087) | 8,752,260) | 8,030,062) | 6,405,160) | 6,145,974) | |
| Total Synopsys stockholders’ equity | 6,147,308) | 5,515,725) | 5,295,137) | 4,907,404) | 4,083,013) | 3,479,152) | |
| Solvency Ratio | |||||||
| Financial leverage1 | 1.68 | 1.71 | 1.65 | 1.64 | 1.57 | 1.77 | |
| Benchmarks | |||||||
| Financial Leverage, Competitors2 | |||||||
| Accenture PLC | 1.99 | 2.14 | 2.21 | 2.18 | 2.07 | 2.36 | |
| Adobe Inc. | 1.80 | 1.93 | 1.84 | 1.83 | 1.97 | 2.00 | |
| International Business Machines Corp. | 6.00 | 5.80 | 6.98 | 7.57 | 7.30 | — | |
| Intuit Inc. | 1.61 | 1.69 | 1.57 | 2.14 | 1.68 | 2.20 | |
| Microsoft Corp. | 2.00 | 2.19 | 2.35 | 2.55 | 2.80 | 3.13 | |
| Oracle Corp. | 125.24 | — | 25.03 | 9.56 | 4.99 | 3.00 | |
| Palo Alto Networks Inc. | 8.29 | 58.35 | 16.14 | 8.23 | 4.16 | 6.03 | |
| Salesforce Inc. | 1.69 | 1.64 | 1.60 | 1.63 | 1.97 | — | |
| ServiceNow Inc. | 2.28 | 2.64 | 2.92 | 3.07 | 2.83 | — | |
| Financial Leverage, Sector | |||||||
| Software & Services | 2.56 | 2.74 | 2.98 | 3.17 | 3.32 | — | |
| Financial Leverage, Industry | |||||||
| Information Technology | 2.44 | 2.56 | 2.72 | 2.90 | 2.87 | — | |
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
Financial leverage = Total assets ÷ Total Synopsys stockholders’ equity
= 10,333,131 ÷ 6,147,308 = 1.68
2 Click competitor name to see calculations.
| Solvency ratio | Description | The company |
|---|---|---|
| Financial leverage ratio | A solvency ratio calculated as total assets divided by total shareholders’ equity. | Synopsys Inc. financial leverage ratio increased from 2021 to 2022 but then slightly decreased from 2022 to 2023. |
Interest Coverage
Synopsys Inc., interest coverage 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) | |||||||
| Net income attributed to Synopsys | 1,229,888) | 984,594) | 757,516) | 664,347) | 532,367) | 432,518) | |
| Add: Net income attributable to noncontrolling interest | (11,763) | (6,158) | (1,157) | (900) | —) | —) | |
| Add: Income tax expense | 83,657) | 137,078) | 49,155) | (25,288) | 13,139) | (68,975) | |
| Add: Interest expense | 1,178) | 1,698) | 3,365) | 5,140) | 11,659) | 15,607) | |
| Earnings before interest and tax (EBIT) | 1,302,960) | 1,117,212) | 808,879) | 643,299) | 557,165) | 379,150) | |
| Solvency Ratio | |||||||
| Interest coverage1 | 1,106.08 | 657.96 | 240.38 | 125.16 | 47.79 | 24.29 | |
| Benchmarks | |||||||
| Interest Coverage, Competitors2 | |||||||
| Accenture PLC | 193.31 | 195.34 | 131.46 | 205.84 | 273.26 | 298.26 | |
| Adobe Inc. | 61.17 | 54.64 | 51.49 | 37.00 | 21.38 | 32.31 | |
| International Business Machines Corp. | 6.42 | 1.97 | 5.20 | 4.62 | 8.58 | — | |
| Intuit Inc. | 13.05 | 32.38 | 89.14 | 158.00 | 126.40 | 76.15 | |
| Microsoft Corp. | 46.38 | 41.58 | 31.31 | 21.47 | 17.27 | 14.35 | |
| Oracle Corp. | 3.65 | 3.84 | 6.28 | 7.13 | 6.97 | 7.43 | |
| Palo Alto Networks Inc. | 21.82 | -6.56 | -1.85 | -1.61 | 0.11 | -3.40 | |
| Salesforce Inc. | 3.30 | 8.09 | 24.28 | 7.42 | 8.80 | — | |
| ServiceNow Inc. | 43.00 | 15.78 | 9.89 | 5.56 | 3.02 | — | |
| Interest Coverage, Sector | |||||||
| Software & Services | 17.58 | 18.31 | 17.65 | 14.44 | 13.06 | — | |
| Interest Coverage, Industry | |||||||
| Information Technology | 18.91 | 24.76 | 22.93 | 16.69 | 15.79 | — | |
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
Interest coverage = EBIT ÷ Interest expense
= 1,302,960 ÷ 1,178 = 1,106.08
2 Click competitor name to see calculations.
| Solvency ratio | Description | The company |
|---|---|---|
| Interest coverage ratio | A solvency ratio calculated as EBIT divided by interest payments. | Synopsys Inc. interest coverage ratio improved from 2021 to 2022 and from 2022 to 2023. |
Fixed Charge Coverage
Synopsys Inc., fixed charge coverage 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) | |||||||
| Net income attributed to Synopsys | 1,229,888) | 984,594) | 757,516) | 664,347) | 532,367) | 432,518) | |
| Add: Net income attributable to noncontrolling interest | (11,763) | (6,158) | (1,157) | (900) | —) | —) | |
| Add: Income tax expense | 83,657) | 137,078) | 49,155) | (25,288) | 13,139) | (68,975) | |
| Add: Interest expense | 1,178) | 1,698) | 3,365) | 5,140) | 11,659) | 15,607) | |
| Earnings before interest and tax (EBIT) | 1,302,960) | 1,117,212) | 808,879) | 643,299) | 557,165) | 379,150) | |
| Add: Operating lease expense | 96,083) | 91,972) | 93,848) | 93,636) | 91,300) | 75,700) | |
| Earnings before fixed charges and tax | 1,399,043) | 1,209,184) | 902,727) | 736,935) | 648,465) | 454,850) | |
| Interest expense | 1,178) | 1,698) | 3,365) | 5,140) | 11,659) | 15,607) | |
| Operating lease expense | 96,083) | 91,972) | 93,848) | 93,636) | 91,300) | 75,700) | |
| Fixed charges | 97,261) | 93,670) | 97,213) | 98,776) | 102,959) | 91,307) | |
| Solvency Ratio | |||||||
| Fixed charge coverage1 | 14.38 | 12.91 | 9.29 | 7.46 | 6.30 | 4.98 | |
| Benchmarks | |||||||
| Fixed Charge Coverage, Competitors2 | |||||||
| Accenture PLC | 10.98 | 12.25 | 10.41 | 9.66 | 10.07 | 9.63 | |
| Adobe Inc. | 30.56 | 26.79 | 25.59 | 18.77 | 10.78 | 13.34 | |
| International Business Machines Corp. | 4.32 | 1.52 | 3.13 | 2.62 | 4.41 | — | |
| Intuit Inc. | 9.03 | 14.67 | 25.58 | 27.48 | 34.00 | 26.91 | |
| Microsoft Corp. | 19.44 | 19.50 | 16.90 | 12.44 | 10.94 | 9.45 | |
| Oracle Corp. | 3.12 | 3.22 | 5.17 | 5.68 | 5.50 | 6.38 | |
| Palo Alto Networks Inc. | 7.20 | -1.18 | -1.09 | -0.52 | 0.41 | -1.01 | |
| Salesforce Inc. | 1.52 | 2.18 | 2.94 | 1.69 | 3.00 | — | |
| ServiceNow Inc. | 7.59 | 3.87 | 2.95 | 2.29 | 1.69 | — | |
| Fixed Charge Coverage, Sector | |||||||
| Software & Services | 9.66 | 9.60 | 9.43 | 7.69 | 7.58 | — | |
| Fixed Charge Coverage, Industry | |||||||
| Information Technology | 12.67 | 14.28 | 13.50 | 10.20 | 10.46 | — | |
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
Fixed charge coverage = Earnings before fixed charges and tax ÷ Fixed charges
= 1,399,043 ÷ 97,261 = 14.38
2 Click competitor name to see calculations.
| Solvency ratio | Description | The company |
|---|---|---|
| Fixed charge coverage ratio | A solvency ratio calculated as earnings before fixed charges and tax divided by fixed charges. | Synopsys Inc. fixed charge coverage ratio improved from 2021 to 2022 and from 2022 to 2023. |