Stock Analysis on Net

Synopsys Inc. (NASDAQ:SNPS)

Return on Equity (ROE) 
since 2005

Microsoft Excel

Calculation

Synopsys Inc., ROE, 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 return on equity (ROE) for the analyzed period demonstrates significant fluctuation, generally trending upwards with notable peaks and valleys. Initial years exhibited volatility, followed by a period of relative stability, and culminating in substantial increases in recent years.

Initial Volatility (2005-2009)
From 2005 to 2009, the ROE experienced considerable variation. A negative ROE of -1.27% was recorded in 2005, indicating a net loss relative to shareholder equity. This was followed by positive, but initially modest, ROE values of 2.13% and 9.08% in 2006 and 2007, respectively. The ROE peaked at 12.43% in 2008 before decreasing to 9.09% in 2009.
Moderate Stability (2010-2014)
The period between 2010 and 2014 saw a more contained range of ROE values, generally fluctuating between 7.21% and 11.29%. While there were year-to-year changes, the ROE remained within a relatively narrow band, suggesting a period of more predictable profitability relative to equity. The highest value within this period was 11.29% in 2010, and the lowest was 7.21% in 2012.
Increasing Trend and Peaks (2015-2023)
Beginning in 2015, the ROE began a more pronounced upward trend. The ROE increased from 8.35% in 2015 to 13.04% in 2019. A significant dip to 4.17% occurred in 2017, but was followed by strong growth. The years 2020, 2021, 2022, and 2023 witnessed substantial increases, reaching 13.54%, 14.31%, 17.85%, and 20.01% respectively. This indicates a consistently improving ability to generate profits from shareholder investments.
Recent Peak and Decline (2024-2025)
The ROE reached a peak of 25.17% in 2024, representing the highest value in the analyzed period. However, a substantial decrease to 4.70% was observed in 2025. This decline warrants further investigation to determine the underlying causes, such as changes in net income, equity levels, or both.

Overall, the ROE demonstrates a long-term positive trajectory, although punctuated by periods of volatility and a recent, significant decline. The substantial increase in ROE in the latter years of the period suggests improved profitability and efficient utilization of shareholder equity, but the 2025 decrease introduces a note of caution.


Comparison to Competitors

Synopsys Inc., ROE, 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)

Synopsys Inc., ROE, long-term trends, comparison to sector (software & services)

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 Industry (Information Technology)

Synopsys Inc., ROE, long-term trends, comparison to industry (information technology)

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).