Balance Sheet: Liabilities and Stockholders’ Equity

The balance sheet provides creditors, investors, and analysts with information on company resources (assets) and its sources of capital (its equity and liabilities). It normally also provides information about the future earnings capacity of a company assets as well as an indication of cash flows that may come from receivables and inventories.

Liabilities represents obligations of a company arising from past events, the settlement of which is expected to result in an outflow of economic benefits from the entity.

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

US$ in thousands

	Oct 31, 2025	Oct 31, 2024	Oct 31, 2023	Oct 31, 2022	Oct 31, 2021	Oct 31, 2020
Payroll and related benefits	822,575)	624,823)	583,854)	559,886)	581,687)	492,626)
Accounts payable	164,766)	207,333)	155,891)	37,580)	27,413)	30,003)
Accrued income taxes	94,664)	147,115)	226,762)	35,290)	—)	—)
Interest payable	49,826)	—)	—)	—)	—)	—)
Other accrued liabilities	194,380)	184,321)	157,254)	176,647)	132,091)	128,773)
Accounts payable and accrued liabilities	1,326,211)	1,163,592)	1,123,761)	809,403)	741,191)	651,402)
Current operating lease liabilities	128,205)	94,791)	85,690)	54,274)	79,678)	73,173)
Current deferred revenue	2,245,961)	1,391,737)	1,776,000)	1,910,822)	1,517,623)	1,388,263)
Short-term debt	22,117)	—)	—)	—)	74,992)	27,084)
Current liabilities	3,722,494)	2,650,120)	2,985,451)	2,774,499)	2,413,484)	2,139,922)
Long-term operating lease liabilities	680,698)	574,065)	584,035)	581,273)	487,003)	462,411)
Long-term deferred revenue	382,557)	340,831)	175,128)	154,472)	136,303)	104,850)
Long-term debt	13,462,398)	15,601)	18,078)	20,824)	25,094)	100,823)
Deferred tax liability	1,001,070)	36,557)	33,943)	13,455)	5,914)	2,397)
Deferred compensation plan liabilities	447,232)	386,757)	300,731)	279,096)	343,820)	269,737)
Other	200,997)	46,424)	51,464)	35,278)	41,699)	37,555)
Other long-term liabilities	1,649,299)	469,738)	386,138)	327,829)	391,433)	309,689)
Long-term liabilities	16,174,952)	1,400,235)	1,163,379)	1,084,398)	1,039,833)	977,773)
Total liabilities	19,897,446)	4,050,355)	4,148,830)	3,858,897)	3,453,317)	3,117,695)
Redeemable non-controlling interest	—)	30,000)	31,043)	38,664)	—)	—)
Preferred stock, $0.01 par value; none outstanding	—)	—)	—)	—)	—)	—)
Common stock, $0.01 par value	1,860)	1,541)	1,521)	1,524)	1,531)	1,528)
Capital in excess of par value	18,640,947)	1,211,206)	1,276,152)	1,487,126)	1,576,363)	1,653,166)
Retained earnings	10,315,487)	8,984,105)	6,741,699)	5,534,307)	4,549,713)	3,795,397)
Treasury stock, at cost	(398,278)	(1,025,770)	(1,675,650)	(1,272,955)	(782,866)	(488,613)
Accumulated other comprehensive loss	(232,414)	(180,380)	(196,414)	(234,277)	(49,604)	(54,074)
Total Synopsys stockholders’ equity	28,327,602)	8,990,702)	6,147,308)	5,515,725)	5,295,137)	4,907,404)
Non-controlling interest	(587)	2,504)	5,950)	4,801)	3,806)	4,963)
Total stockholders’ equity	28,327,015)	8,993,206)	6,153,258)	5,520,526)	5,298,943)	4,912,367)
Total liabilities, redeemable non-controlling interest and stockholders’ equity	48,224,461)	13,073,561)	10,333,131)	9,418,087)	8,752,260)	8,030,062)

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 liabilities and stockholders’ equity of the company demonstrate significant changes over the six-year period. Total liabilities increased substantially, particularly in the later years, while stockholders’ equity also grew, though not at the same rate as liabilities in the most recent periods. A detailed examination reveals specific trends within each section.

Current Liabilities: Current liabilities exhibited a general upward trend from 2020 to 2023, increasing from US$2,139,922 thousand to US$2,985,451 thousand. However, a decrease was observed in 2024 to US$2,650,120 thousand, followed by a substantial increase in 2025 to US$3,722,494 thousand. This fluctuation is largely driven by changes in current deferred revenue and accounts payable and accrued liabilities. Accounts payable and accrued liabilities increased consistently, more than doubling from US$651,402 thousand in 2020 to US$1,326,211 thousand in 2025. Current deferred revenue also showed a significant increase over the period, peaking in 2025 at US$2,245,961 thousand, though it decreased in 2024.
Long-Term Liabilities: Long-term liabilities generally increased from 2020 to 2025. Long-term operating lease liabilities remained relatively stable until 2025, when it increased to US$680,698 thousand. Long-term deferred revenue showed a consistent increase, more than tripling from US$104,850 thousand in 2020 to US$382,557 thousand in 2025. The most dramatic change occurred in long-term debt and deferred tax liability. Long-term debt remained relatively low until 2025, when it increased dramatically to US$13,462,398 thousand. Deferred tax liability also experienced a substantial increase, rising from US$2,397 thousand in 2020 to US$1,001,070 thousand in 2025. Other long-term liabilities also increased significantly, more than quintupling over the period.
Stockholders’ Equity: Total stockholders’ equity increased steadily from US$4,912,367 thousand in 2020 to US$8,993,206 thousand in 2024. However, a substantial increase occurred in 2025, reaching US$28,327,015 thousand. This growth was primarily driven by a significant increase in capital in excess of par value, which rose from US$1,653,166 thousand in 2020 to US$18,640,947 thousand in 2025, and retained earnings, which increased from US$3,795,397 thousand to US$10,315,487 thousand over the same period. Treasury stock decreased from negative US$488,613 thousand in 2020 to negative US$398,278 thousand in 2025, indicating a reduction in repurchased shares. Accumulated other comprehensive loss remained relatively stable, with a slight increase over the period.
Total Liabilities and Equity: Total liabilities, redeemable non-controlling interest, and stockholders’ equity increased consistently throughout the period, but the rate of increase accelerated significantly in 2025, reaching US$48,224,461 thousand. This increase was primarily attributable to the substantial growth in both total liabilities and stockholders’ equity in that year. The proportion of liabilities to equity shifted over time, with liabilities representing a larger percentage of the total in 2025 compared to earlier years.

The significant increases in long-term debt, deferred tax liability, and capital in excess of par value in 2025 warrant further investigation to understand the underlying reasons and potential implications for the company’s financial position and future performance.

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Synopsys Inc. (NASDAQ:SNPS)

Balance Sheet: Liabilities and Stockholders’ Equity