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: 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


Revenue
The revenue demonstrates a consistent upward trend over the entire period, increasing from approximately $992 million in 2005 to over $6.1 billion in 2024. This steady growth reflects sustained expansion of the company's operations and market presence. Notably, the growth rate appears to accelerate particularly after 2018, where revenue increased from roughly $3.1 billion in 2018 to over $6.1 billion in 2024, nearly doubling within six years.
Net Income (Loss) Attributed to Synopsys
The net income figures show significant improvement and positive momentum overall. Initially, there was a loss of approximately $15.5 million in 2005, but the company quickly turned profitable in 2006. From 2006 onwards, net income generally increased with some fluctuations but reached a peak of about $2.26 billion in 2024. Key observations include a sizable jump in profitability beginning around 2018, which corresponds with the period of rapid revenue growth. The net income growth from 2018 ($432 million) to 2024 ($2.26 billion) suggests improved cost management and operational efficiency, amplifying profitability at a greater rate than revenue expansion alone.
Net Profit Margin
The net profit margin exhibited considerable variation throughout the years, starting negative at -1.56% in 2005, then moving into positive territory by 2006 with 2.26%. From 2007 onwards, margins fluctuated between 5% and 19%, with a notable dip to 5.01% in 2017 despite increasing revenue. However, after this dip, margins significantly improved, reaching 36.94% by 2024. This substantial increase in net profit margin in recent years indicates enhanced profitability efficiency, likely driven by higher revenue growth coupled with improved expense control or higher-margin product lines.
Overall Financial Performance
The data reflects a company with strong revenue growth complemented by improving profitability over nearly two decades. The initial recovery from losses to solid profitability frameworks by the mid-2000s suggests effective strategic adjustments. The marked increases in both net income and net profit margin in the latter years, especially post-2018, underscore the company's ability to scale earnings at a faster rate than revenue, reflecting an improved cost structure and margin expansion. This trend points to a robust financial position, demonstrating both growth and operational efficiency enhancements.

Comparison to Competitors

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

Microsoft Excel

Based on: 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)