EVA is registered trademark of Stern Stewart.

Economic value added or economic profit is the difference between revenues and costs,where costs include not only expenses, but also cost of capital.

Economic Profit
Net Operating Profit after Taxes (NOPAT)
Cash Operating Taxes
Invested Capital
Cost of Capital
Economic Spread Ratio
Economic Profit Margin

Synopsys Inc., economic profit calculation

US$ in thousands

12 months ended:	Oct 31, 2024	Oct 31, 2023	Oct 31, 2022	Oct 31, 2021	Oct 31, 2020	Oct 31, 2019
Net operating profit after taxes (NOPAT)¹	1,062,721)	891,268)	1,357,350)	800,432)	774,053)	489,829)
Cost of capital²	15.56%	15.57%	15.51%	15.51%	15.44%	15.14%
Invested capital³	10,307,049)	8,083,758)	7,739,574)	6,945,230)	6,656,460)	5,864,612)

Economic profit⁴	(541,424)	(367,736)	157,306)	(277,017)	(253,497)	(397,891)

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).

¹ NOPAT. See details »

² Cost of capital. See details »

³ Invested capital. See details »

⁴ 2024 Calculation
Economic profit = NOPAT – Cost of capital × Invested capital
= 1,062,721 – 15.56% × 10,307,049 = -541,424

The financial data reveals notable fluctuations and trends in the company's performance over the analyzed years. Net operating profit after taxes (NOPAT) demonstrates a generally increasing trend from 2019 to 2024, with the exception of a notable peak in 2022 and a dip in 2023 before rising again in 2024. Specifically, NOPAT rose steadily from 489,829 thousand USD in 2019 to 800,432 thousand USD in 2021, then surged to 1,357,350 thousand USD in 2022. This was followed by a decline to 891,268 thousand USD in 2023, and a subsequent recovery to 1,062,721 thousand USD in 2024.

The cost of capital remained relatively stable over the period, fluctuating slightly but maintaining a consistent range around 15.1% to 15.6%. This indicates a consistent benchmark used in evaluating capital efficiency and investment decisions throughout the years.

Invested capital steadily increased each year, starting at 5,864,612 thousand USD in 2019 and reaching a substantial 10,307,049 thousand USD by 2024. This upward trend signals considerable growth in the company’s asset base or capital employed for operations, nearly doubling over the six-year period.

Economic profit, which reflects the value created beyond the required return on capital, shows a different pattern. It remained negative from 2019 through 2021, indicating the company did not cover its cost of capital in those years despite positive NOPAT. In 2022, economic profit turned positive at 157,306 thousand USD, suggesting that the company not only covered its cost of capital but also generated excess value that year. However, this was followed by a return to negative economic profits in 2023 and 2024, with losses deepening to -367,736 thousand USD and -541,424 thousand USD respectively. This trend points to challenges in continuing to generate returns above the cost of capital, despite growing invested capital and fluctuating operating profits.

In summary, while NOPAT shows general growth with notable volatility, and invested capital has increased substantially, the persistence of negative economic profit in most years indicates ongoing difficulties in delivering value beyond the cost of capital. The positive economic profit in 2022 stands out as an exception rather than a sustained trend.

Download chart

Synopsys Inc., NOPAT calculation

US$ in thousands

12 months ended:	Oct 31, 2024	Oct 31, 2023	Oct 31, 2022	Oct 31, 2021	Oct 31, 2020	Oct 31, 2019
Net income attributed to Synopsys	2,263,380)	1,229,888)	984,594)	757,516)	664,347)	532,367)
Deferred income tax expense (benefit)¹	(375,970)	(211,045)	(36,913)	(128,583)	(111,526)	(82,620)
Increase (decrease) in allowance for credit losses²	12,325)	13,169)	(1,127)	2,116)	19,518)	3,433)
Increase (decrease) in deferred revenue³	22,280)	(114,166)	411,368)	160,813)	190,535)	32,857)
Increase (decrease) in equity equivalents⁴	(341,365)	(312,042)	373,328)	34,346)	98,527)	(46,330)
Interest expense	35,161)	1,178)	1,698)	3,365)	5,140)	11,659)
Interest expense, operating lease liability⁵	19,129)	16,743)	13,918)	11,390)	13,711)	—)
Adjusted interest expense	54,290)	17,921)	15,616)	14,755)	18,851)	11,659)
Tax benefit of interest expense⁶	(11,401)	(3,763)	(3,279)	(3,099)	(3,959)	(2,448)
Adjusted interest expense, after taxes⁷	42,889)	14,158)	12,337)	11,657)	14,892)	9,211)
Interest income	(67,017)	(36,674)	(8,545)	(2,442)	(3,561)	(6,859)
Investment income, before taxes	(67,017)	(36,674)	(8,545)	(2,442)	(3,561)	(6,859)
Tax expense (benefit) of investment income⁸	14,074)	7,702)	1,794)	513)	748)	1,440)
Investment income, after taxes⁹	(52,943)	(28,972)	(6,751)	(1,929)	(2,813)	(5,419)
(Income) loss from discontinued operations, net of tax¹⁰	(821,670)	—)	—)	—)	—)	—)
Net income (loss) attributable to noncontrolling interest	(27,570)	(11,763)	(6,158)	(1,157)	(900)	—)
Net operating profit after taxes (NOPAT)	1,062,721)	891,268)	1,357,350)	800,432)	774,053)	489,829)

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).

¹ Elimination of deferred tax expense. See details »

² Addition of increase (decrease) in allowance for credit losses.

³ Addition of increase (decrease) in deferred revenue.

⁴ Addition of increase (decrease) in equity equivalents to net income attributed to Synopsys.

⁵ 2024 Calculation
Interest expense on capitalized operating leases = Operating lease liability × Discount rate
= 668,856 × 2.86% = 19,129

⁶ 2024 Calculation
Tax benefit of interest expense = Adjusted interest expense × Statutory income tax rate
= 54,290 × 21.00% = 11,401

⁷ Addition of after taxes interest expense to net income attributed to Synopsys.

⁸ 2024 Calculation
Tax expense (benefit) of investment income = Investment income, before tax × Statutory income tax rate
= 67,017 × 21.00% = 14,074

⁹ Elimination of after taxes investment income.

¹⁰ Elimination of discontinued operations.

The financial data reveals notable trends in profitability measures over the six-year period ending October 31, 2024. Both net income attributable to the company and net operating profit after taxes (NOPAT) exhibit overall growth, albeit with differing patterns across the years.

Net Income Attributed to the Company: This metric demonstrates a consistent year-over-year increase from 2019 through 2024. Starting at approximately $532 million in 2019, net income rose steadily each year, reaching about $2.26 billion by 2024. This represents a more than fourfold increase over the six-year span, indicating substantial growth in bottom-line profitability.
Net Operating Profit After Taxes (NOPAT): NOPAT generally maintains an upward trend but reflects more volatility compared to net income. Beginning at roughly $490 million in 2019, NOPAT nearly doubles by 2020 to $774 million, followed by a modest increase in 2021. In 2022, there is a significant jump to approximately $1.36 billion, likely reflecting improved operating efficiency or operational scale. However, in 2023, NOPAT decreases sharply to about $891 million before partially recovering to $1.06 billion in 2024. This fluctuation suggests changes in operating performance or tax impacts that merit further investigation.

Overall, net income growth appears robust and consistently positive, signaling strong profitability and potentially effective cost management or revenue expansion. Meanwhile, the variations in NOPAT highlight some potential operational challenges or one-time adjustments impacting operating earnings during the period, especially in the last two years.

Download chart

Synopsys Inc., cash operating taxes calculation

US$ in thousands

12 months ended:	Oct 31, 2024	Oct 31, 2023	Oct 31, 2022	Oct 31, 2021	Oct 31, 2020	Oct 31, 2019
Provision (benefit) for income taxes	99,718)	83,657)	137,078)	49,155)	(25,288)	13,139)
Less: Deferred income tax expense (benefit)	(375,970)	(211,045)	(36,913)	(128,583)	(111,526)	(82,620)
Add: Tax savings from interest expense	11,401)	3,763)	3,279)	3,099)	3,959)	2,448)
Less: Tax imposed on investment income	14,074)	7,702)	1,794)	513)	748)	1,440)
Cash operating taxes	473,015)	290,764)	175,476)	180,324)	89,449)	96,767)

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).

Provision (Benefit) for Income Taxes: The provision for income taxes showed considerable volatility over the six-year period under review. Initially, there was a benefit recorded in 2020, reflected by a negative provision of approximately -25.3 million USD, following a provision of around 13.1 million USD in 2019. This was succeeded by a significant increase in the provision, reaching 49.2 million USD in 2021 and further rising sharply to 137.1 million USD in 2022. Subsequently, the provision decreased to 83.7 million USD in 2023 and showed a slight increase again to approximately 99.7 million USD in 2024. The fluctuations suggest varying tax strategies or changes in taxable income and tax rates over the years.
Cash Operating Taxes: Cash operating taxes exhibited a steady and substantial upward trend throughout the period. Starting from 96.8 million USD in 2019, there was a slight decline to 89.4 million USD in 2020, followed by a marked increase to 180.3 million USD in 2021. This upward trajectory continued with a slight reduction to 175.5 million USD in 2022, then a significant surge to 290.8 million USD in 2023, and further escalation to 473.0 million USD in 2024. The increasing cash outflows for operating taxes indicate higher taxable earnings or changes in tax payment policies, highlighting growing tax expenses in actual cash terms.

Download chart

Synopsys Inc., invested capital calculation (financing approach)

US$ in thousands

	Oct 31, 2024	Oct 31, 2023	Oct 31, 2022	Oct 31, 2021	Oct 31, 2020	Oct 31, 2019
Short-term debt	—)	—)	—)	74,992)	27,084)	17,614)
Long-term debt	15,601)	18,078)	20,824)	25,094)	100,823)	120,093)
Operating lease liability¹	668,856)	669,725)	635,547)	566,681)	535,584)	622,599)
Total reported debt & leases	684,457)	687,803)	656,371)	666,767)	663,491)	760,306)
Total Synopsys stockholders’ equity	8,990,702)	6,147,308)	5,515,725)	5,295,137)	4,907,404)	4,083,013)
Net deferred tax (assets) liabilities²	(1,210,701)	(826,971)	(657,198)	(606,741)	(495,149)	(388,641)
Allowance for credit losses³	51,008)	42,722)	29,553)	30,680)	28,564)	9,046)
Deferred revenue⁴	1,732,568)	1,951,128)	2,065,294)	1,653,926)	1,493,113)	1,302,578)
Equity equivalents⁵	572,875)	1,166,879)	1,437,649)	1,077,865)	1,026,528)	922,983)
Accumulated other comprehensive (income) loss, net of tax⁶	180,380)	196,414)	234,277)	49,604)	54,074)	92,447)
Redeemable non-controlling interest	30,000)	31,043)	38,664)	—)	—)	—)
Non-controlling interest	2,504)	5,950)	4,801)	3,806)	4,963)	5,863)
Adjusted total Synopsys stockholders’ equity	9,776,461)	7,547,594)	7,231,116)	6,426,412)	5,992,969)	5,104,306)
Short-term investments⁷	(153,869)	(151,639)	(147,913)	(147,949)	—)	—)
Invested capital	10,307,049)	8,083,758)	7,739,574)	6,945,230)	6,656,460)	5,864,612)

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).

¹ Addition of capitalized operating leases.

² Elimination of deferred taxes from assets and liabilities. See details »

³ Addition of allowance for doubtful accounts receivable.

⁴ Addition of deferred revenue.

⁵ Addition of equity equivalents to total Synopsys stockholders’ equity.

⁶ Removal of accumulated other comprehensive income.

⁷ Subtraction of short-term investments.

The financial data presents a multi-year view of key capital structure components, including total reported debt and leases, total stockholders' equity, and invested capital. The trends reflect notable developments in the company's financing and capitalization over the examined periods.

Total reported debt & leases: The total reported debt and leases exhibit a generally stable trend with minor fluctuations. Starting from approximately $760 million in 2019, the figure decreased to around $663 million in 2020 before slightly rising and then fluctuating marginally between $656 million and $688 million in subsequent years. By 2024, the debt level registers at about $684 million, indicating a relatively consistent leverage position without significant volatility or large changes in debt financing.
Total stockholders’ equity: The total stockholders’ equity demonstrates a strong upward trajectory across the years. Commencing at roughly $4.08 billion in 2019, equity increased steadily each year, reaching about $9 billion by 2024. This nearly doubles the equity base over the time frame, highlighting substantial growth in the company's net worth and potentially reflecting retained earnings, issuance of new equity, or appreciation in asset values. The consistent increase in equity suggests an improving financial foundation and possibly enhanced investor confidence.
Invested capital: Invested capital also follows an upward trend, beginning at approximately $5.86 billion in 2019 and increasing annually to surpass $10.3 billion by 2024. This indicates an expansion in the total capital employed in the business, combining equity and debt components. The growth in invested capital exceeds that of debt, aligning with the observed equity increases and suggesting that the company has been funding growth primarily through internal resources or equity financing rather than markedly increasing debt levels.

Overall, the company’s capital structure reveals disciplined management of debt with a stable leverage profile, alongside robust and steady growth in equity and invested capital. This pattern indicates a strengthening financial position supported by increased shareholder investment and a growing asset base.

Download chart

Synopsys Inc., cost of capital calculations

Oct 31, 2024

	Capital (fair value)¹	Weights					Cost of capital
Equity²	76,261,278)	76,261,278)	÷	76,945,735)	=	0.99	0.99	×	15.68%	=	15.54%
Debt³	15,601)	15,601)	÷	76,945,735)	=	0.00	0.00	×	0.00% × (1 – 21.00%)	=	0.00%
Operating lease liability⁴	668,856)	668,856)	÷	76,945,735)	=	0.01	0.01	×	2.86% × (1 – 21.00%)	=	0.02%
Total:	76,945,735)					1.00					15.56%

Based on: 10-K (reporting date: 2024-10-31).

¹ US$ in thousands

² Equity. See details »

³ Debt. See details »

⁴ Operating lease liability. See details »

Oct 31, 2023

	Capital (fair value)¹	Weights					Cost of capital
Equity²	86,185,679)	86,185,679)	÷	86,873,482)	=	0.99	0.99	×	15.68%	=	15.56%
Debt³	18,078)	18,078)	÷	86,873,482)	=	0.00	0.00	×	0.00% × (1 – 21.00%)	=	0.00%
Operating lease liability⁴	669,725)	669,725)	÷	86,873,482)	=	0.01	0.01	×	2.50% × (1 – 21.00%)	=	0.02%
Total:	86,873,482)					1.00					15.57%

Based on: 10-K (reporting date: 2023-10-31).

¹ US$ in thousands

² Equity. See details »

³ Debt. See details »

⁴ Operating lease liability. See details »

Oct 31, 2022

	Capital (fair value)¹	Weights					Cost of capital
Equity²	50,959,165)	50,959,165)	÷	51,615,536)	=	0.99	0.99	×	15.68%	=	15.48%
Debt³	20,824)	20,824)	÷	51,615,536)	=	0.00	0.00	×	0.00% × (1 – 21.00%)	=	0.00%
Operating lease liability⁴	635,547)	635,547)	÷	51,615,536)	=	0.01	0.01	×	2.19% × (1 – 21.00%)	=	0.02%
Total:	51,615,536)					1.00					15.51%

Based on: 10-K (reporting date: 2022-10-31).

¹ US$ in thousands

² Equity. See details »

³ Debt. See details »

⁴ Operating lease liability. See details »

Oct 31, 2021

	Capital (fair value)¹	Weights					Cost of capital
Equity²	55,579,968)	55,579,968)	÷	56,246,735)	=	0.99	0.99	×	15.68%	=	15.50%
Debt³	100,086)	100,086)	÷	56,246,735)	=	0.00	0.00	×	0.00% × (1 – 21.00%)	=	0.00%
Operating lease liability⁴	566,681)	566,681)	÷	56,246,735)	=	0.01	0.01	×	2.01% × (1 – 21.00%)	=	0.02%
Total:	56,246,735)					1.00					15.51%

Based on: 10-K (reporting date: 2021-10-31).

¹ US$ in thousands

² Equity. See details »

³ Debt. See details »

⁴ Operating lease liability. See details »

Oct 31, 2020

	Capital (fair value)¹	Weights					Cost of capital
Equity²	37,147,108)	37,147,108)	÷	37,810,599)	=	0.98	0.98	×	15.68%	=	15.41%
Debt³	127,907)	127,907)	÷	37,810,599)	=	0.00	0.00	×	0.00% × (1 – 21.00%)	=	0.00%
Operating lease liability⁴	535,584)	535,584)	÷	37,810,599)	=	0.01	0.01	×	2.56% × (1 – 21.00%)	=	0.03%
Total:	37,810,599)					1.00					15.44%

Based on: 10-K (reporting date: 2020-10-31).

¹ US$ in thousands

² Equity. See details »

³ Debt. See details »

⁴ Operating lease liability. See details »

Oct 31, 2019

	Capital (fair value)¹	Weights					Cost of capital
Equity²	21,056,819)	21,056,819)	÷	21,817,125)	=	0.97	0.97	×	15.68%	=	15.14%
Debt³	137,707)	137,707)	÷	21,817,125)	=	0.01	0.01	×	0.00% × (1 – 21.00%)	=	0.00%
Operating lease liability⁴	622,599)	622,599)	÷	21,817,125)	=	0.03	0.03	×	0.00% × (1 – 21.00%)	=	0.00%
Total:	21,817,125)					1.00					15.14%

Based on: 10-K (reporting date: 2019-10-31).

¹ US$ in thousands

² Equity. See details »

³ Debt. See details »

⁴ Operating lease liability. See details »

Synopsys Inc., economic spread ratio calculation, comparison to benchmarks

	Oct 31, 2024	Oct 31, 2023	Oct 31, 2022	Oct 31, 2021	Oct 31, 2020	Oct 31, 2019
Selected Financial Data (US$ in thousands)
Economic profit¹	(541,424)	(367,736)	157,306)	(277,017)	(253,497)	(397,891)
Invested capital²	10,307,049)	8,083,758)	7,739,574)	6,945,230)	6,656,460)	5,864,612)
Performance Ratio
Economic spread ratio³	-5.25%	-4.55%	2.03%	-3.99%	-3.81%	-6.78%
Benchmarks
Economic Spread Ratio, Competitors⁴
Accenture PLC	3.25%	4.04%	6.89%	8.73%	9.31%	—
Adobe Inc.	3.78%	4.01%	9.46%	11.86%	4.14%	2.25%
AppLovin Corp.	-4.81%	-13.80%	-22.02%	-23.57%	—	—
Cadence Design Systems Inc.	-0.60%	9.51%	8.91%	9.13%	9.94%	—
CrowdStrike Holdings Inc.	-4.63%	-0.95%	-4.22%	-6.48%	4.37%	—
Datadog Inc.	-5.25%	-1.68%	-7.47%	0.38%	-5.29%	—
International Business Machines Corp.	-6.44%	-2.49%	-10.29%	-5.24%	-4.89%	—
Intuit Inc.	-5.99%	-8.04%	-6.95%	0.71%	4.10%	—
Microsoft Corp.	11.86%	14.90%	22.85%	31.87%	29.91%	—
Oracle Corp.	-2.12%	-3.11%	-2.63%	5.47%	-0.15%	—
Palantir Technologies Inc.	-20.29%	-16.99%	-40.65%	-48.13%	-88.13%	—
Palo Alto Networks Inc.	7.78%	13.82%	5.73%	-2.96%	-3.94%	—
Salesforce Inc.	-11.31%	-13.57%	-11.15%	-8.87%	-11.89%	—
ServiceNow Inc.	8.23%	7.52%	3.00%	4.21%	5.83%	—
Workday Inc.	-9.32%	-15.62%	-10.39%	-15.65%	-19.13%	—

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).

¹ Economic profit. See details »

² Invested capital. See details »

³ 2024 Calculation
Economic spread ratio = 100 × Economic profit ÷ Invested capital
= 100 × -541,424 ÷ 10,307,049 = -5.25%

⁴ Click competitor name to see calculations.

The financial data reveals notable fluctuations and trends in the economic performance of the company over the six-year period analyzed.

Economic Profit: The economic profit exhibited negative values throughout the period, reflecting ongoing challenges in generating returns above the invested capital cost. Initially, the loss was significant at -$397.9 million in 2019, decreasing in magnitude to -$253.5 million in 2020, indicating some improvement. However, the decline reintensified in 2021 as economic profit dropped to -$277.0 million. In 2022, there was a positive turnaround with economic profit reaching $157.3 million, suggesting a brief period of profitability above cost of capital. This improvement was short-lived as economic profit again turned negative in 2023 and further deteriorated by 2024 to -$541.4 million, marking the largest loss in the timeframe.
Invested Capital: Invested capital consistently increased year-over-year, reflecting ongoing investment and growth in the company’s asset base. The base grew from approximately $5.86 billion in 2019 to over $10.3 billion in 2024. This represents a near doubling of invested capital, showing an aggressive expansion or accumulation of assets over the period.
Economic Spread Ratio: The economic spread ratio, which measures the return rate above the cost of capital, remained negative for most years, demonstrating an inability to create value above the capital costs. The ratio improved from -6.78% in 2019 to -3.81% in 2020 but slightly worsened to -3.99% in 2021. A positive spread of 2.03% was achieved in 2022, coinciding with the positive economic profit reported in that year. Nonetheless, this was followed by a return to negative spread values in 2023 (-4.55%) and 2024 (-5.25%), signaling declining economic profitability despite the increased invested capital.

Overall, the data indicates that the company managed a one-year period of positive economic profitability in 2022 but otherwise struggled to generate returns above its cost of capital. The consistent growth in invested capital was not matched by sustained improvement in economic profit or spread, suggesting challenges in leveraging these investments to achieve lasting value creation.

Download chart

Synopsys Inc., economic profit margin calculation, comparison to benchmarks

	Oct 31, 2024	Oct 31, 2023	Oct 31, 2022	Oct 31, 2021	Oct 31, 2020	Oct 31, 2019
Selected Financial Data (US$ in thousands)
Economic profit¹	(541,424)	(367,736)	157,306)	(277,017)	(253,497)	(397,891)

Revenue	6,127,436)	5,842,619)	5,081,542)	4,204,193)	3,685,281)	3,360,694)
Add: Increase (decrease) in deferred revenue	22,280)	(114,166)	411,368)	160,813)	190,535)	32,857)
Adjusted revenue	6,149,716)	5,728,453)	5,492,910)	4,365,006)	3,875,816)	3,393,551)
Performance Ratio
Economic profit margin²	-8.80%	-6.42%	2.86%	-6.35%	-6.54%	-11.72%
Benchmarks
Economic Profit Margin, Competitors³
Accenture PLC	1.84%	2.08%	3.32%	4.48%	4.74%	—
Adobe Inc.	4.29%	5.02%	11.02%	14.79%	5.94%	3.38%
AppLovin Corp.	-4.64%	-18.90%	-41.23%	-47.19%	—	—
Cadence Design Systems Inc.	-0.91%	9.48%	8.89%	9.28%	10.01%	—
CrowdStrike Holdings Inc.	-7.27%	-1.28%	-6.61%	-13.47%	3.83%	—
Datadog Inc.	-4.77%	-1.05%	-5.17%	0.30%	-4.06%	—
International Business Machines Corp.	-11.39%	-4.45%	-17.87%	-9.99%	-8.51%	—
Intuit Inc.	-9.21%	-13.17%	-13.37%	0.90%	4.61%	—
Microsoft Corp.	16.58%	16.96%	21.90%	26.45%	22.20%	—
Oracle Corp.	-4.03%	-6.02%	-4.83%	10.81%	-0.34%	—
Palantir Technologies Inc.	-17.60%	-9.12%	-68.19%	-79.28%	-179.53%	—
Palo Alto Networks Inc.	8.26%	13.72%	6.67%	-3.98%	-6.39%	—
Salesforce Inc.	-26.17%	-34.56%	-30.95%	-20.35%	-29.27%	—
ServiceNow Inc.	6.77%	6.05%	2.41%	3.64%	4.76%	—
Workday Inc.	-10.38%	-19.16%	-14.09%	-20.42%	-24.61%	—

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).

¹ Economic profit. See details »

² 2024 Calculation
Economic profit margin = 100 × Economic profit ÷ Adjusted revenue
= 100 × -541,424 ÷ 6,149,716 = -8.80%

³ Click competitor name to see calculations.

Adjusted Revenue: There is a consistent upward trend in adjusted revenue over the six-year period. Revenue increased steadily from approximately 3.39 billion US dollars in 2019 to around 6.15 billion US dollars by 2024, nearly doubling within this timeframe. This growth reflects strong sales expansion or successful market penetration efforts.
Economic Profit: The economic profit figures show significant volatility and predominantly negative values across the years analyzed. Initially, economic profit improved from -398 million USD in 2019 to -253 million USD in 2020, indicating a partial recovery. However, it diminished slightly in 2021 and then experienced a temporary positive turn in 2022 with a value of approximately 157 million USD. This positive outcome suggests an isolated year of operational efficiency or cost management. Nonetheless, economic profit reversed sharply into negative territory afterwards, declining to -368 million USD in 2023 and further down to -541 million USD in 2024, indicating worsening economic profitability.
Economic Profit Margin: The economic profit margin trend follows a pattern consistent with the economic profit figures. It started at -11.72% in 2019, improved substantially by 2020 and 2021, showing a reduction in negative margin to around -6.5%. In 2022, the margin briefly turned positive at 2.86%, suggesting effective utilization of assets or capital in that year. However, the margin again declined thereafter, reflecting deteriorating profitability, standing at -8.8% by 2024. This conveys challenges in maintaining sustainable profitability despite revenue growth.

Download chart

Synopsys Inc. (NASDAQ:SNPS)

Economic Value Added (EVA)

Economic Profit

Net Operating Profit after Taxes (NOPAT)

Cash Operating Taxes

Invested Capital

Cost of Capital

Economic Spread Ratio

Economic Profit Margin