Analysis of Geographic Areas
Synopsys Inc. operates in 2 regions: United States and Other.
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- Balance Sheet: Assets
- Balance Sheet: Liabilities and Stockholders’ Equity
- Common-Size Income Statement
- Enterprise Value to EBITDA (EV/EBITDA)
- Price to FCFE (P/FCFE)
- Present Value of Free Cash Flow to Equity (FCFE)
- Selected Financial Data since 2005
- Debt to Equity since 2005
- Total Asset Turnover since 2005
- Aggregate Accruals
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Area Asset Turnover
Synopsys Inc., asset turnover by geographic area
| Oct 31, 2024 | Oct 31, 2023 | Oct 31, 2022 | Oct 31, 2021 | Oct 31, 2020 | Oct 31, 2019 | |
|---|---|---|---|---|---|---|
| United States | ||||||
| Other |
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).
- United States Asset Turnover Trend
- The asset turnover ratio for the United States exhibits a consistent upward trajectory from 2019 to 2023, increasing from 5.71 to 8.24. This represents a substantial improvement in the efficiency with which assets generate revenue during this period. In 2024, the ratio experiences a slight decline to 8.17, though it remains significantly higher than the initial values observed in 2019 and 2020.
- Other Geographic Areas Asset Turnover Trend
- The asset turnover ratio for other geographic areas demonstrates more variability across the years. Starting at a high of 12.4 in 2019, there is a notable drop to 11.08 in 2020. This is followed by a recovery phase with the ratio increasing to 11.93 in 2021 and then peaking at 14.72 in 2022. The ratio recedes slightly in 2023 to 13.96 but rises again in 2024 to 14.88, marking the highest point in the observed period.
- Comparative Insights
- The asset turnover ratios for other geographic areas consistently exceed those of the United States, indicating greater relative efficiency in asset utilization outside the US market. Both regions show an overall positive trend, though the United States achieves steadier growth with minor fluctuations, whereas other areas experience more pronounced volatility yet maintain higher turnover values throughout.
- Overall Observations
- Across the six-year span, the data reflects general improvement in asset turnover efficiency in both geographies. While the United States shows gradual and steady enhancement, other regions are characterized by greater amplitude in fluctuations but ultimately reach superior asset turnover ratios. The marginal decline in the most recent year for the US contrasts with the continued increase seen elsewhere, suggesting potential regional differences in operational dynamics or market conditions during that period.
Area Asset Turnover: United States
Synopsys Inc.; United States; area asset turnover calculation
| Oct 31, 2024 | Oct 31, 2023 | Oct 31, 2022 | Oct 31, 2021 | Oct 31, 2020 | Oct 31, 2019 | |
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||
| Revenue | ||||||
| Property and equipment, net | ||||||
| Area Activity Ratio | ||||||
| Area asset turnover1 | ||||||
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 2024 Calculation
Area asset turnover = Revenue ÷ Property and equipment, net
= ÷ =
The financial data for the United States geographic area reveals several notable trends across the analyzed periods.
- Revenue
- The revenue exhibited a consistent upward trend from October 31, 2019, through October 31, 2023, increasing from approximately $1.68 billion to $2.79 billion. This growth reflects a substantial expansion over the five-year period. However, a slight decrease is observed in the final year, with revenue declining marginally to approximately $2.74 billion by October 31, 2024. Despite this dip, the revenue remains significantly higher than in the initial years, indicating overall strong performance.
- Property and Equipment, Net
- The net value of property and equipment showed moderate fluctuations throughout the period. Initially, it increased from about $293.7 million in 2019 to $311.4 million in 2020, followed by a decrease to $283.6 million in 2021. Subsequently, it rose again over the next years, reaching a peak of approximately $338.3 million in 2023 before slightly declining to about $335.3 million in 2024. This pattern suggests periodic investment and divestment activities or varying depreciation effects impacting the asset base.
- Area Asset Turnover
- This ratio, indicative of the efficiency with which the company utilizes its assets to generate revenue within the United States, shows a consistent improvement from 5.71 in 2019 to a peak of 8.24 in 2023. A minor decrease to 8.17 in 2024 is observed, but the ratio remains significantly higher than in earlier periods. This trend signals enhanced operational efficiency and better asset utilization over time, aligning with the revenue growth observed.
Overall, the data presents a picture of strong revenue growth accompanied by improved asset utilization efficiency, despite some year-over-year variations in the asset base and a slight revenue decline in the latest period. The company appears to manage its property and equipment assets effectively to sustain revenue increases within the United States market.
Area Asset Turnover: Other
Synopsys Inc.; Other; area asset turnover calculation
| Oct 31, 2024 | Oct 31, 2023 | Oct 31, 2022 | Oct 31, 2021 | Oct 31, 2020 | Oct 31, 2019 | |
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||
| Revenue | ||||||
| Property and equipment, net | ||||||
| Area Activity Ratio | ||||||
| Area asset turnover1 | ||||||
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 2024 Calculation
Area asset turnover = Revenue ÷ Property and equipment, net
= ÷ =
- Revenue
- The revenue from the "Other" geographic area demonstrates a consistent upward trend over the six-year period. Starting at approximately 1.68 billion US dollars in 2019, revenue increases each year, reaching roughly 3.39 billion US dollars by 2024. This represents a compound growth indicating strong expansion or increased market penetration in this area. The most significant year-on-year growth appeared between 2021 and 2022, with revenue rising by about 21%, followed by steady increases averaging around 11.5% annually thereafter.
- Property and Equipment, Net
- The net value of property and equipment exhibits an overall upward trend as well, beginning at about 136 million US dollars in 2019 and rising to approximately 228 million US dollars in 2024. Despite a slight decrease observed between 2021 and 2022, the value rebounds subsequently, indicating possible reinvestment or asset acquisition after a temporary reduction. The increases suggest continued investment in fixed assets supporting operations in this geographic area.
- Area Asset Turnover Ratio
- The area asset turnover ratio, which measures how efficiently assets generate revenue, shows some variability but a general improvement over the period. It starts at 12.4 in 2019, declines moderately to 11.08 in 2020, then recovers and rises sharply to 14.72 in 2022. Although it slightly dips to 13.96 in 2023, it reaches a peak of 14.88 in 2024, indicating improved efficiency in asset utilization. This suggests that despite growing asset bases, the company manages to enhance revenue generation capacity relative to assets.
Revenue
Synopsys Inc., revenue by geographic area
US$ in thousands
| Oct 31, 2024 | Oct 31, 2023 | Oct 31, 2022 | Oct 31, 2021 | Oct 31, 2020 | Oct 31, 2019 | |
|---|---|---|---|---|---|---|
| United States | ||||||
| Other | ||||||
| Consolidated |
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).
- Revenue Trends - United States
- The revenue generated in the United States exhibited a steady upward trend from October 2019 through October 2023. Starting at approximately $1.68 billion in 2019, it increased consistently each year, reaching a peak of around $2.79 billion in 2023. However, in October 2024, there was a slight decline to approximately $2.74 billion, indicating a minor contraction after several years of growth.
- Revenue Trends - Other Geographic Areas
- Revenue from regions outside the United States grew consistently throughout the period under review. Beginning at roughly $1.68 billion in 2019, this segment experienced continuous annual increases, culminating in about $3.39 billion by October 2024. The growth rate in these areas appears robust and uninterrupted, with no observed declines.
- Consolidated Revenue Analysis
- The consolidated revenue, encompassing all geographic areas, demonstrated a clear upward trajectory throughout the six-year span. Starting at approximately $3.36 billion in 2019, total revenue increased each year without interruption, reaching nearly $6.13 billion in 2024. The steady expansion highlights overall company growth, driven by increasing revenues both domestically and internationally, despite the small drop observed in the U.S. segment in the last recorded year.
- Comparative Insights
- While the United States remained a significant revenue contributor, its growth showed signs of plateauing or slight decline in the final year reported. In contrast, revenues from other geographic areas consistently increased at a notable pace, suggesting a potential shift toward greater reliance on international markets. The consolidated figures reflect this trend, with the international segment compensating for the stagnation observed in domestic revenues, thereby sustaining overall growth.
Property and equipment, net
Synopsys Inc., property and equipment, net by geographic area
US$ in thousands
| Oct 31, 2024 | Oct 31, 2023 | Oct 31, 2022 | Oct 31, 2021 | Oct 31, 2020 | Oct 31, 2019 | |
|---|---|---|---|---|---|---|
| United States | ||||||
| Other | ||||||
| Consolidated |
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).
The analysis of the annual geographic area property and equipment, net data reveals distinct trends over the six-year period ending October 31, 2024.
- United States
- The net property and equipment values for the United States exhibit some fluctuations throughout the observed period. Starting at $293,725 thousand in 2019, the figure increases moderately to $311,350 thousand in 2020, followed by a decline to $283,602 thousand in 2021. Subsequently, there is a recovery phase with a rise to $297,780 thousand in 2022, and a significant upward movement reaching $338,260 thousand in 2023. The value slightly decreases to $335,306 thousand in 2024, but remains near the peak observed the year prior. Overall, the trend indicates growth with short-term volatility, reflecting possible investment cycles or disposals in this geographic segment.
- Other Geographic Areas
- This segment demonstrates a consistent and robust growth trend over the reported years. From $135,807 thousand in 2019, the amount increases steadily each year, reaching $172,468 thousand in 2020, and $188,796 thousand in 2021. Although there is a slight decline to $185,520 thousand in 2022, the upward trend resumes strongly with values advancing to $219,001 thousand in 2023 and further to $227,700 thousand in 2024. This gradual and persistent increase suggests ongoing investment or asset expansion in non-U.S. regions, signaling strategic focus on these areas.
- Consolidated
- The consolidated data, representing the total net property and equipment, reflects an overall upward trajectory from $429,532 thousand in 2019 to $563,006 thousand in 2024. While some minor fluctuations occur, such as a decline from $483,818 thousand in 2020 to $472,398 thousand in 2021, the general pattern is one of growth. Notably, substantial increases occur between 2022 and 2023, where the value jumps from $483,300 thousand to $557,261 thousand. This increase is likely influenced by growth in both the United States and other geographic areas, particularly the latter segment's sustained rise. The figures for 2024 show a marginal increase, indicating continued investment or asset holding at elevated levels.
In summary, the data depicts a scenario of overall expansion in property and equipment net values, with more pronounced and consistent growth outside the United States. While the U.S. market shows some volatility and fluctuations, the other geographic areas contribute significantly to consolidated growth. This suggests a strategic shift or growth emphasis in non-U.S. locations alongside maintaining a substantial asset base in the United States.