Stock Analysis on Net

Synopsys Inc. (NASDAQ:SNPS)

$24.99

Net Profit Margin
since 2005

Microsoft Excel

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Calculation

Synopsys Inc., net profit margin, long-term trends, calculation

Microsoft Excel

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), 10-K (reporting date: 2019-10-31), 10-K (reporting date: 2018-10-31), 10-K (reporting date: 2017-10-31), 10-K (reporting date: 2016-10-31), 10-K (reporting date: 2015-10-31), 10-K (reporting date: 2014-10-31), 10-K (reporting date: 2013-10-31), 10-K (reporting date: 2012-10-31), 10-K (reporting date: 2011-10-31), 10-K (reporting date: 2010-10-31), 10-K (reporting date: 2009-10-31), 10-K (reporting date: 2008-10-31), 10-K (reporting date: 2007-10-31), 10-K (reporting date: 2006-10-31), 10-K (reporting date: 2005-10-31).

1 US$ in thousands


The net profit margin exhibited significant fluctuations over the period from 2005 to 2025. Initially, the company experienced a net loss in 2005, resulting in a negative net profit margin. Subsequent years demonstrated a clear upward trend, culminating in substantial profitability by 2025.

Initial Period (2005-2009)
From 2005 to 2009, the net profit margin transitioned from -1.56% to 12.33%. This period reflects a recovery from initial losses and a growing ability to convert revenue into profit. The margin increased substantially between 2006 and 2007, indicating a period of rapid improvement in profitability. While there was a slight decrease in 2009, the margin remained positive and relatively strong.
Growth and Stability (2010-2014)
Between 2010 and 2014, the net profit margin generally remained within a range of 10.08% to 17.17%. This suggests a period of relative stability and consistent profitability. The margin peaked at 17.17% in 2010, followed by a slight decline, but remained consistently above 10%. This indicates effective cost management and pricing strategies.
Fluctuations and Expansion (2015-2019)
The years 2015 to 2019 saw more pronounced fluctuations. The net profit margin decreased to 5.01% in 2017, before experiencing a significant rebound, reaching 15.84% in 2019. This volatility could be attributed to changing market conditions, increased competition, or specific company investments. The substantial increase in 2019 suggests successful strategic initiatives or favorable market dynamics.
Recent Performance (2020-2025)
From 2020 to 2025, the net profit margin demonstrated a strong upward trajectory, increasing from 18.03% to 36.94%. This represents a period of exceptional profitability. The margin exceeded 20% in 2021 and continued to climb, peaking at 36.94% in 2023 before decreasing slightly to 18.89% in 2025. This suggests a highly efficient business model and strong market position. The decrease in 2025 may warrant further investigation to determine the underlying causes.

Overall, the net profit margin demonstrates a long-term positive trend, with periods of fluctuation. The company has shown a consistent ability to improve its profitability over time, culminating in a significantly higher margin in the most recent years. The substantial increase in margin from 2020 onwards is particularly noteworthy and suggests a period of strong financial performance.


Comparison to Competitors

Synopsys Inc., net profit margin, long-term trends, comparison to competitors

Microsoft Excel

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), 10-K (reporting date: 2019-10-31), 10-K (reporting date: 2018-10-31), 10-K (reporting date: 2017-10-31), 10-K (reporting date: 2016-10-31), 10-K (reporting date: 2015-10-31), 10-K (reporting date: 2014-10-31), 10-K (reporting date: 2013-10-31), 10-K (reporting date: 2012-10-31), 10-K (reporting date: 2011-10-31), 10-K (reporting date: 2010-10-31), 10-K (reporting date: 2009-10-31), 10-K (reporting date: 2008-10-31), 10-K (reporting date: 2007-10-31), 10-K (reporting date: 2006-10-31), 10-K (reporting date: 2005-10-31).


Comparison to Sector (Software & Services)


Comparison to Industry (Information Technology)