Synopsys Inc. (NASDAQ:SNPS)

Current Assets

The current assets show a steady upward trend over the six-year period. Starting at approximately $1.74 billion in October 2019, there is a consistent increase year-over-year, reaching about $6.47 billion by October 2024. This significant growth indicates strong liquidity expansion and an increasing asset base available for meeting short-term obligations.

Adjusted Current Assets

Adjusted current assets follow a similar trajectory to current assets, beginning at approximately $1.75 billion in October 2019 and rising annually to approximately $6.52 billion in October 2024. The slight premium of adjusted current assets over current assets each year suggests the inclusion of certain adjustments that increase the reported liquid resources, reinforcing the positive liquidity trend observed.

Overall Trend and Insights

The data reveals a consistent and substantial increase in both current and adjusted current assets over the period, with the total value nearly quadrupling from 2019 to 2024. This growth reflects an improved liquidity position, potentially facilitating better operational flexibility, investment capability, and risk management. The parallel movement and close values of current assets and adjusted current assets imply that adjustments add relatively marginal increases but confirm robustness in asset quality.

Analysis of the available financial data over the six-year period reveals a consistent upward trend in both total assets and adjusted total assets.

Total Assets

The total assets increased steadily from US$6,405,160 thousand in 2019 to US$13,073,561 thousand in 2024. This represents more than a doubling over the six-year period, indicating significant growth in the company's asset base. The year-over-year increases are substantial, with the highest jump observed between 2023 and 2024.

Adjusted Total Assets

Adjusted total assets also show growth from US$6,646,676 thousand in 2019 to US$11,877,311 thousand in 2024. While the values remain consistently higher than the unadjusted total assets, the growth trend is slightly less aggressive compared to total assets, particularly noticeable in the periods from 2019 to 2020 and again from 2023 to 2024 where the increments reflect moderate rises before a more pronounced increase in the final recorded year.

Overall, the data indicates robust asset growth, with total assets expanding at a faster pace compared to adjusted total assets in recent years. This could imply changes in asset composition or accounting adjustments affecting the adjusted figures. The steady increase across all periods reflects an ongoing expansion or investment strategy contributing positively to the company’s asset strength.

The analysis of the annual financial data reveals several noteworthy patterns and trends in the current liabilities and adjusted current liabilities over the examined periods.

Current Liabilities

There is an overall upward trend in current liabilities from October 31, 2019, through October 31, 2023, with the value increasing from approximately 1.75 billion US dollars to nearly 3 billion US dollars. This denotes a consistent rise in obligations due within one year, reflecting potential growth in operational activities or short-term financing. However, in the last recorded period ending October 31, 2024, current liabilities decreased to approximately 2.65 billion US dollars, which suggests a reduction in short-term obligations or improved liability management.

Adjusted Current Liabilities

Adjusted current liabilities also show an increasing trend from 2019 to 2024, starting at roughly 540 million US dollars and growing to nearly 1.26 billion US dollars. This trend indicates that even when adjustments are considered, short-term liabilities have expanded significantly. There are minor fluctuations, such as a slight decrease between 2021 and 2022, but the overall movement is upward, with the most prominent year-over-year increase occurring between 2022 and 2023.

Comparative Insights

The gap between current liabilities and adjusted current liabilities has widened over time, highlighting that certain liabilities excluded in the adjusted figures have grown disproportionately. The decrease in current liabilities from 2023 to 2024 does not correspond with a similar decrease in adjusted current liabilities, which continue to rise. This disparity may suggest strategic adjustments in how liabilities are classified or managed, affecting liquidity assessment and financial strategy.

Overall, both metrics indicate an expansion of liabilities over the analyzed period, with recent improvements in current liabilities but sustained growth in adjusted obligations. This pattern suggests a cautious but ongoing increase in short-term financial commitments that warrants close monitoring in future reporting periods.

Total liabilities

The total liabilities exhibit a general upward trend from 2019 through 2023, increasing from approximately 2.32 billion to around 4.15 billion US dollars. This represents a substantial growth in liabilities over this five-year period. However, in the last reported year, 2024, total liabilities show a slight decrease to about 4.05 billion US dollars, indicating a potential initial effort to reduce or stabilize liabilities after consistent growth.

Adjusted total liabilities

The adjusted total liabilities maintain a somewhat different pattern. From 2019 to 2020, these figures remain relatively stable, hovering around 1.63 billion US dollars. A modest increase is observed in 2021, reaching approximately 1.79 billion US dollars. The values then stabilize again in 2022 before experiencing noticeable increases in 2023 and 2024, peaking at about 2.28 billion US dollars in the latter year. This suggests a gradual increase in adjusted liabilities in recent years, with a sharper rise occurring in the last two reporting periods.

Comparison and insights

When comparing total liabilities with adjusted total liabilities, it is clear that adjusted liabilities represent a subset or modified measure of total liabilities, consistently lower in magnitude. The divergence between the two measures increases over time, particularly after 2022, suggesting either an increase in liabilities excluded from the adjusted figure or different accounting treatments. The slight decline in total liabilities in 2024, alongside continued growth in adjusted liabilities, might imply strategic adjustments in liability management or reclassification of certain obligations.

Total Stockholders' Equity

The total stockholders’ equity demonstrates a consistent upward trend over the six-year period analyzed. Starting at approximately $4.08 billion in 2019, it increased steadily each year, reaching about $8.99 billion by 2024. This reflects a more than twofold increase over the period, indicating strong growth in the company’s net assets attributed to equity holders.

Adjusted Total Stockholders’ Equity

The adjusted total stockholders’ equity also shows a consistent increase throughout the period, beginning at roughly $5.01 billion in 2019 and rising to approximately $9.60 billion in 2024. The adjusted figures remain higher than the total stockholders’ equity in all years, suggesting the adjustments account for additional value recognized beyond the book equity. This measure indicates a similar growth trajectory as the total equity, reinforcing the positive trend in the company’s financial position.

Overall Trends and Insights

Both equity measures reveal a stable and continuous increase over the years analyzed, with no periods of decline or stagnation. The rate of growth appears particularly pronounced in the last recorded period (2023 to 2024), with the total stockholders’ equity and adjusted equity showing significant jumps relative to previous years. This could suggest accelerated capital accumulation, improved retained earnings, or substantial additional equity investments during that time frame. The consistent equity growth highlights the company’s strengthening financial foundation and potentially increasing investor confidence.

The financial data displays significant shifts in various capital and debt metrics over the observed period from October 31, 2019, to October 31, 2024.

Total Reported Debt

This metric shows a consistent and notable decline, dropping from 137,707 thousand USD in 2019 to 15,601 thousand USD in 2024, indicating a substantial reduction in reported debt levels over the six-year period.

Total Synopsys Stockholders’ Equity

Stockholders' equity demonstrates a steady upward trajectory, rising from 4,083,013 thousand USD in 2019 to 8,990,702 thousand USD in 2024. This reflects a strong growth in shareholder value and possibly retained earnings or additional capital infusion.

Total Reported Capital

Total reported capital, combining debt and equity, increases consistently from 4,220,720 thousand USD in 2019 to 9,006,303 thousand USD in 2024, mirroring the equity trend and overshadowing the decreasing debt, emphasizing stronger capitalization.

Adjusted Total Debt

Adjusted total debt remains relatively stable compared to the reported debt figures, fluctuating slightly but generally staying within the range of approximately 660,000 to 760,000 thousand USD. Notably, it peaked in 2019 and again in 2023 before minor decreases, suggesting adjustments for lease obligations or other liabilities maintain a higher debt basis than reported debt.

Adjusted Total Stockholders’ Equity

This adjusted equity value increases steadily from 5,011,859 thousand USD in 2019 to 9,596,081 thousand USD in 2024, parallel to the reported equity but consistently higher, indicating inclusion of unrealized gains or other comprehensive income in this adjustment.

Adjusted Total Capital

The adjusted total capital rises from 5,772,165 thousand USD in 2019 to 10,280,538 thousand USD in 2024, showing a marked increase. This growth reflects the combined effect of relatively stable adjusted debt and increasing adjusted equity, signifying enhanced overall financial strength.

In summary, the company exhibits a clear trend of decreasing reported debt alongside rapidly increasing equity, leading to a substantial rise in overall capital base. Adjusted figures suggest a larger and more stable debt environment when considering additional obligations, while equity growth remains robust even after adjustments. The capital structure appears to become increasingly equity-driven, enhancing financial stability and shareholder value over the years examined.

The financial data over the six-year period indicates a consistent upward trend in both reported revenue and adjusted revenue. This reflects an overall growth trajectory.

Revenue

Revenue increased steadily from approximately 3.36 billion US dollars in October 2019 to about 6.13 billion US dollars in October 2024. This represents an approximate doubling of revenue over the six-year span, indicating robust growth.

Adjusted Revenue

Adjusted revenue followed a similar upward trend, starting at around 3.39 billion US dollars in October 2019 and rising to nearly 6.15 billion US dollars by October 2024. The adjusted figures consistently remain slightly above the reported revenue, suggesting minor adjustments that slightly increase the recognized revenue figures.

The year-on-year increases show an acceleration particularly notable between 2021 and 2023, where the growth increment in both revenue measures is more pronounced compared to earlier years. From 2023 to 2024, growth continues but at a somewhat slower pace compared to the previous two years.

Overall, the data reflects strong and sustained revenue growth, with adjusted revenue maintaining a close premium over reported revenue. This suggests effective revenue recognition practices and continuous expansion of business activities. The consistent pattern without any significant dips or volatility indicates stable operational performance.

The analysis of the annual financial data reveals notable trends in the profitability of the entity over the six-year period from October 31, 2019, to October 31, 2024.

Net Income Attributed to Synopsys

The net income attributable to the company exhibits a consistent upward trajectory throughout the period. Starting at 532,367 thousand US dollars in 2019, the net income increased steadily each year, reaching 2,263,380 thousand US dollars by 2024. This represents more than a fourfold increase over six years, indicating substantial growth in reported profitability. The growth is continuous and sharpest in the last year, where net income almost doubles from the previous year's figure, suggesting a significant improvement in financial performance or extraordinary gains during that period.

Adjusted Net Income

Adjusted net income shows a generally positive trend but with more fluctuation compared to net income. Beginning at 506,767 thousand US dollars in 2019, it rose sharply in 2020 to 800,347 thousand US dollars. It then remained relatively stable in 2021 at 795,175 thousand US dollars before experiencing a marked increase in 2022 to 1,167,091 thousand US dollars. However, in 2023, adjusted net income declined to 943,946 thousand US dollars, indicating some challenges or adjustments impacting earnings. In 2024, it increased again to 1,088,809 thousand US dollars, suggesting some recovery but not yet reaching the 2022 peak.

Overall, the data indicates that while the net income attributable to the company has consistently grown, the adjusted net income experienced more volatility with a peak in 2022, a dip in 2023, and a partial rebound in 2024. This divergence between net income and adjusted net income in later years may reflect changes in non-recurring items, adjustments, or operational factors affecting the company's performance metrics. The significant growth in net income, especially in 2024, underscores a strong upward momentum in profitability.