Statement of Comprehensive Income
Comprehensive income is the change in equity (net assets) of a business enterprise during a period from transactions and other events and circumstances from non-owners sources. It includes all changes in equity during a period except those resulting from investments by owners and distributions to owners.
Synopsys Inc., consolidated statement of comprehensive income
US$ in thousands
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 statement of comprehensive income reveals a generally positive trend in overall profitability, though with notable fluctuations in certain comprehensive income components. Net income demonstrates a consistent increase from 2020 to 2024, peaking at US$2,235,810 thousand, before decreasing in 2025 to US$1,333,251 thousand. Comprehensive income mirrors this pattern, rising significantly through 2024 and then declining in 2025. However, the composition of comprehensive income is influenced by several volatile elements.
- Net Income Trend
- Net income increased steadily from US$663,447 thousand in 2020 to US$1,218,125 thousand in 2023, representing substantial growth. The increase to US$2,235,810 thousand in 2024 is particularly significant, but the subsequent decline to US$1,333,251 thousand in 2025 warrants further investigation. This 2025 decrease is a substantial shift from the prior year’s growth.
- Foreign Currency Translation Adjustment
- The change in foreign currency translation adjustment is highly variable. Positive adjustments were observed in 2020 and 2021, followed by a large negative adjustment in 2022. This pattern continued with a smaller negative adjustment in 2023, a positive adjustment in 2024, and a return to a negative adjustment in 2025. These fluctuations suggest significant exposure to foreign exchange rate movements.
- Unrealized Gains (Losses) and Deferred Gains (Losses)
- Both change in unrealized gains/losses on available-for-sale securities and deferred gains/losses exhibit volatility. While relatively small in initial years, deferred gains/losses experienced a large negative impact in 2022 and 2025, offsetting gains in intervening periods. The unrealized gains/losses remained minimal until 2023, then became slightly negative in 2025. These items, while not consistently material, contribute to the overall fluctuation in comprehensive income.
- Cash Flow Hedges
- Cash flow hedges demonstrate considerable variability. A positive value was recorded in 2020 and 2023, while negative values were present in 2021, 2022, and 2025. The largest negative impact occurred in 2022 and 2025, indicating potential challenges in hedging strategies or changes in hedging positions.
- Other Comprehensive Income
- Other comprehensive income (loss) is significantly impacted by the fluctuations in the aforementioned components, resulting in a substantial negative value in 2022 and 2025, and a positive value in 2023 and 2024. This highlights the sensitivity of overall comprehensive income to items beyond net income.
- Non-Controlling Interest
- The net income attributed to non-controlling interest and redeemable non-controlling interest generally increased from 2020 to 2024, mirroring the growth in net income. However, a negative value was recorded in 2025, potentially indicating a change in ownership structure or performance of the non-controlling interest.
In summary, while net income demonstrates a strong overall growth trend, comprehensive income is subject to considerable volatility due to fluctuations in foreign currency translation adjustments, unrealized gains/losses, deferred gains/losses, and cash flow hedges. The significant decline in both net income and comprehensive income in 2025, coupled with the negative impact from non-controlling interest, suggests a potential shift in the company’s financial performance that requires further scrutiny.