Stock Analysis on Net
Stock Analysis on Net

Synopsys Inc. (NASDAQ:SNPS)

Common-Size Balance Sheet: Liabilities and Stockholders’ Equity 

Synopsys Inc., common-size consolidated balance sheet: liabilities and stockholders’ equity

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Oct 31, 2025 Oct 31, 2024 Oct 31, 2023 Oct 31, 2022 Oct 31, 2021 Oct 31, 2020
Payroll and related benefits 1.71 4.78 5.65 5.94 6.65 6.13
Accounts payable 0.34 1.59 1.51 0.40 0.31 0.37
Accrued income taxes 0.20 1.13 2.19 0.37 0.00 0.00
Interest payable 0.10 0.00 0.00 0.00 0.00 0.00
Other accrued liabilities 0.40 1.41 1.52 1.88 1.51 1.60
Accounts payable and accrued liabilities 2.75% 8.90% 10.88% 8.59% 8.47% 8.11%
Current operating lease liabilities 0.27 0.73 0.83 0.58 0.91 0.91
Current deferred revenue 4.66 10.65 17.19 20.29 17.34 17.29
Short-term debt 0.05 0.00 0.00 0.00 0.86 0.34
Current liabilities 7.72% 20.27% 28.89% 29.46% 27.58% 26.65%
Long-term operating lease liabilities 1.41 4.39 5.65 6.17 5.56 5.76
Long-term deferred revenue 0.79 2.61 1.69 1.64 1.56 1.31
Long-term debt 27.92 0.12 0.17 0.22 0.29 1.26
Deferred tax liability 2.08 0.28 0.33 0.14 0.07 0.03
Deferred compensation plan liabilities 0.93 2.96 2.91 2.96 3.93 3.36
Other 0.42 0.36 0.50 0.37 0.48 0.47
Other long-term liabilities 3.42% 3.59% 3.74% 3.48% 4.47% 3.86%
Long-term liabilities 33.54% 10.71% 11.26% 11.51% 11.88% 12.18%
Total liabilities 41.26% 30.98% 40.15% 40.97% 39.46% 38.83%
Redeemable non-controlling interest 0.00 0.23 0.30 0.41 0.00 0.00
Preferred stock, $0.01 par value; none outstanding 0.00 0.00 0.00 0.00 0.00 0.00
Common stock, $0.01 par value 0.00 0.01 0.01 0.02 0.02 0.02
Capital in excess of par value 38.65 9.26 12.35 15.79 18.01 20.59
Retained earnings 21.39 68.72 65.24 58.76 51.98 47.26
Treasury stock, at cost -0.83 -7.85 -16.22 -13.52 -8.94 -6.08
Accumulated other comprehensive loss -0.48 -1.38 -1.90 -2.49 -0.57 -0.67
Total Synopsys stockholders’ equity 58.74% 68.77% 59.49% 58.57% 60.50% 61.11%
Non-controlling interest 0.00 0.02 0.06 0.05 0.04 0.06
Total stockholders’ equity 58.74% 68.79% 59.55% 58.62% 60.54% 61.17%
Total liabilities, redeemable non-controlling interest and stockholders’ equity 100.00% 100.00% 100.00% 100.00% 100.00% 100.00%

Based on: 10-K (reporting date: 2025-10-31), 10-K (reporting date: 2024-10-31), 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).

The composition of liabilities and stockholders’ equity exhibited notable shifts between 2020 and 2025. Overall, a dynamic pattern emerges, with certain liability categories decreasing as a percentage of the total while others increase, and a significant fluctuation in the proportion of stockholders’ equity.

Current Liabilities
Current liabilities initially increased from 26.65% in 2020 to 29.46% in 2022, before declining substantially to 7.72% in 2025. This decrease is largely attributable to a significant reduction in current deferred revenue, which fell from 17.29% to 4.66% over the period. Accounts payable also experienced a notable decrease in 2025, dropping to 0.34% from a peak of 1.59% in 2023. Accrued income taxes show a similar pattern, increasing from 2022 to 2023 and then decreasing significantly by 2025.
Long-Term Liabilities
Long-term liabilities demonstrated relative stability between 2020 and 2024, fluctuating around 11-12%. However, a substantial increase is observed in 2025, rising to 33.54% of the total. This surge is primarily driven by a significant increase in long-term debt, which grew from 0.12% to 27.92% during that year. Deferred tax liability also contributed to this increase, rising from 0.28% to 2.08%.
Total Liabilities
Total liabilities remained relatively stable, hovering around 39-41% from 2020 to 2024. A notable increase occurred in 2025, reaching 41.26%, reflecting the combined effect of increased long-term liabilities and a decrease in stockholders’ equity.
Stockholders’ Equity
Total stockholders’ equity decreased from 61.17% in 2020 to 58.62% in 2022, then increased significantly to 68.79% in 2024. However, a substantial decline occurred in 2025, falling to 58.74%. This fluctuation is largely explained by changes in retained earnings and capital in excess of par value. Retained earnings increased steadily from 47.26% to 68.72% in 2024, but then decreased sharply to 21.39% in 2025. Conversely, capital in excess of par value decreased from 20.59% to 9.26% in 2024, then increased dramatically to 38.65% in 2025. Treasury stock consistently represented a negative percentage of total equity, increasing in magnitude until 2024 before decreasing slightly in 2025.
Specific Liability Accounts
Payroll and related benefits decreased consistently from 6.13% in 2020 to 1.71% in 2025. Accounts payable and accrued liabilities showed an increase from 8.11% to 10.88% between 2020 and 2023, followed by a significant decrease to 2.75% in 2025. Other accrued liabilities remained relatively stable, fluctuating between 1.51% and 1.88% before decreasing to 0.40% in 2025.

The observed trends suggest a shift in the company’s financing structure, with a greater reliance on long-term debt in 2025 and a corresponding decrease in retained earnings. The significant changes in deferred revenue and capital in excess of par value warrant further investigation to understand the underlying business activities driving these fluctuations.