Analysis of Geographic Areas
Synopsys Inc. operates in 2 regions: United States and Other.
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- Balance Sheet: Assets
- Analysis of Liquidity Ratios
- Analysis of Long-term (Investment) Activity Ratios
- Enterprise Value to FCFF (EV/FCFF)
- Capital Asset Pricing Model (CAPM)
- Return on Equity (ROE) since 2005
- Current Ratio since 2005
- Price to Book Value (P/BV) since 2005
- Analysis of Revenues
- Analysis of Debt
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Area Asset Turnover
Synopsys Inc., asset turnover by geographic area
| Oct 31, 2025 | Oct 31, 2024 | Oct 31, 2023 | Oct 31, 2022 | Oct 31, 2021 | Oct 31, 2020 | |
|---|---|---|---|---|---|---|
| United States | ||||||
| Other |
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).
Asset turnover ratios for the specified geographic areas demonstrate distinct trends over the observed period. The United States exhibits a consistent upward trajectory, while the ‘Other’ area shows more fluctuation. Overall, both areas demonstrate efficient asset utilization, though at differing levels and with varying patterns of change.
- United States
- The asset turnover ratio for the United States increased steadily from 5.70 in 2020 to 8.24 in 2023. This indicates improving efficiency in generating revenue from assets within this region. A slight decrease to 8.17 was observed in 2024, but the ratio rebounded strongly to 9.46 in 2025, representing the highest value in the analyzed period. This suggests a sustained and strengthening ability to convert investments in assets into sales.
- Other
- The asset turnover ratio for the ‘Other’ area began at 11.08 in 2020 and rose to 14.72 in 2022, indicating a high level of asset utilization. The ratio decreased to 13.96 in 2023, followed by a further increase to 14.88 in 2024. However, a notable decline to 10.72 occurred in 2025. This suggests that while generally efficient, asset utilization in the ‘Other’ area is more volatile than in the United States, with a significant reduction in efficiency observed in the most recent year.
- Comparative Analysis
- Throughout the period, the ‘Other’ area consistently maintained a higher asset turnover ratio than the United States, until 2025. This implies that, historically, assets in the ‘Other’ area were more effectively employed in generating revenue. However, the strong growth in the United States ratio, coupled with the decline in the ‘Other’ area in 2025, narrows this gap considerably. The difference in trends suggests differing operational characteristics or investment strategies between the two geographic areas.
The observed changes in asset turnover ratios warrant further investigation to understand the underlying drivers. Factors such as changes in sales volume, asset base, and operational efficiency within each region should be considered to provide a more comprehensive explanation of these trends.
Area Asset Turnover: United States
Synopsys Inc.; United States; area asset turnover calculation
| Oct 31, 2025 | Oct 31, 2024 | Oct 31, 2023 | Oct 31, 2022 | Oct 31, 2021 | Oct 31, 2020 | |
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||
| Revenue | ||||||
| Property and equipment, net | ||||||
| Area Activity Ratio | ||||||
| Area asset turnover1 | ||||||
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).
1 2025 Calculation
Area asset turnover = Revenue ÷ Property and equipment, net
= ÷ =
The area asset turnover ratio for the United States demonstrates a consistent upward trend over the observed period. Revenue originating from the United States increased from US$1,774,348 thousand in 2020 to US$3,100,095 thousand in 2025. Simultaneously, net property and equipment associated with this area experienced fluctuations, beginning at US$311,350 thousand in 2020, decreasing to US$283,602 thousand in 2021, and then increasing to US$338,260 thousand in 2023 before declining to US$327,803 thousand in 2025.
- Area Asset Turnover Trend
- The area asset turnover ratio increased from 5.70 in 2020 to 6.88 in 2021, representing a substantial initial improvement. This upward trajectory continued with values of 7.89, 8.24, and 8.17 in 2022, 2023, and 2024 respectively. The most significant increase occurred between 2024 and 2025, with the ratio reaching 9.46. This indicates increasing efficiency in utilizing assets to generate revenue within the United States.
The consistent rise in the area asset turnover ratio suggests that the company is becoming more effective at converting its investments in property and equipment within the United States into sales. While property and equipment values fluctuated, the revenue growth consistently outpaced these changes, driving the improved ratio. The substantial increase in the ratio from 2024 to 2025 warrants further investigation to determine the specific factors contributing to this accelerated efficiency.
- Revenue and Asset Relationship
- The relationship between revenue and net property and equipment suggests a growing operational leverage within the United States. The company appears to be generating more revenue from a relatively stable asset base, particularly in the later years of the period. This could be attributable to factors such as increased sales force effectiveness, improved production processes, or a shift towards higher-margin products.
Overall, the observed trends indicate positive performance regarding asset utilization within the United States. The increasing area asset turnover ratio is a favorable sign, suggesting improved operational efficiency and a strong ability to generate revenue from existing assets.
Area Asset Turnover: Other
Synopsys Inc.; Other; area asset turnover calculation
| Oct 31, 2025 | Oct 31, 2024 | Oct 31, 2023 | Oct 31, 2022 | Oct 31, 2021 | Oct 31, 2020 | |
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||
| Revenue | ||||||
| Property and equipment, net | ||||||
| Area Activity Ratio | ||||||
| Area asset turnover1 | ||||||
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).
1 2025 Calculation
Area asset turnover = Revenue ÷ Property and equipment, net
= ÷ =
The financial performance related to asset utilization within the 'Other' geographic area demonstrates a generally positive trend in efficiency, followed by a recent decline. Revenue consistently increased over the observed period, while the value of property and equipment, net, experienced more moderate fluctuations before a significant increase in the latest year. This interplay is reflected in the area asset turnover ratio.
- Area Asset Turnover
- The area asset turnover ratio, a measure of how efficiently assets are used to generate revenue, exhibited an increasing trend from 11.08 in 2020 to 14.72 in 2022. This indicates improving efficiency in revenue generation relative to the investment in property and equipment. A slight decrease to 13.96 was noted in 2023, but the ratio recovered to 14.88 in 2024. However, a notable decline to 10.72 is observed in 2025.
The increase in property and equipment, net, from 2023 to 2025 is substantial. While revenue continues to grow, the rate of asset growth outpaces revenue growth in the final period, contributing to the observed decrease in the area asset turnover ratio. This suggests a potential over-investment in assets relative to the revenue they are currently generating, or a delay in realizing the full revenue potential of those assets.
Prior to 2025, the consistent growth in revenue alongside relatively stable property and equipment, net, resulted in a more efficient use of assets. The recent shift in this relationship warrants further investigation to determine the underlying causes and potential implications for future performance.
Revenue
Synopsys Inc., revenue by geographic area
US$ in thousands
| Oct 31, 2025 | Oct 31, 2024 | Oct 31, 2023 | Oct 31, 2022 | Oct 31, 2021 | Oct 31, 2020 | |
|---|---|---|---|---|---|---|
| United States | ||||||
| Other | ||||||
| Consolidated |
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).
Revenue figures demonstrate consistent growth across all reported geographic areas between October 31, 2020, and October 31, 2025. The 'Other' category consistently represents a substantial portion of total revenue, and exhibits a slightly higher growth rate than revenue generated within the United States.
- United States Revenue Trend
- Revenue from the United States increased from US$1,774,348 thousand in 2020 to US$3,100,095 thousand in 2025. Growth was generally positive year-over-year, with a notable increase between 2021 and 2022. A slight decrease is observed between 2022 and 2023, followed by renewed growth in 2024 and 2025.
- Other Revenue Trend
- Revenue from areas outside the United States grew from US$1,910,933 thousand in 2020 to US$3,954,083 thousand in 2025. This category consistently exceeded revenue generated within the United States. The rate of increase appears relatively stable throughout the period, with consistent year-over-year gains.
- Consolidated Revenue Trend
- Consolidated revenue, representing the sum of revenue from the United States and 'Other' areas, increased from US$3,685,281 thousand in 2020 to US$7,054,178 thousand in 2025. This demonstrates a strong overall growth trajectory. The largest year-over-year increase occurred between 2021 and 2022.
- Relative Contribution to Consolidated Revenue
- In 2020, revenue from the United States represented approximately 48.1% of consolidated revenue, while 'Other' areas contributed approximately 51.9%. By 2025, the United States’ contribution decreased to approximately 43.9% of consolidated revenue, while 'Other' areas increased to approximately 56.1%. This indicates a growing reliance on revenue generated outside of the United States.
The observed trends suggest a successful expansion into international markets, as evidenced by the increasing contribution of the 'Other' category to overall revenue. While the United States remains a significant revenue source, the growth rate in 'Other' areas is notably strong and contributes substantially to the overall positive revenue trend.
Property and equipment, net
Synopsys Inc., property and equipment, net by geographic area
US$ in thousands
| Oct 31, 2025 | Oct 31, 2024 | Oct 31, 2023 | Oct 31, 2022 | Oct 31, 2021 | Oct 31, 2020 | |
|---|---|---|---|---|---|---|
| United States | ||||||
| Other | ||||||
| Consolidated |
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).
The value of property and equipment, net, exhibits distinct trends when analyzed by geographic area. Overall, a general increase is observed across all regions over the analyzed period, though the rate of increase varies significantly.
- United States
- The United States demonstrates a fluctuating pattern. After a decrease from 2020 to 2021, the value recovers and increases to $338.260 million in 2023. Subsequently, a slight decrease is noted in 2024, followed by a further decrease in 2025 to $327.803 million. The trend suggests relative stability with minor fluctuations.
- Other
- The “Other” geographic area shows a consistent upward trend, particularly pronounced in the later years. From $172.468 million in 2020, the value rises to $219.001 million in 2023. This growth accelerates significantly in 2024 and 2025, reaching $368.890 million. This represents a substantial increase relative to the United States.
- Consolidated
- The consolidated value, representing the sum of the United States and “Other” regions, reflects the combined trends. A slight decrease is observed between 2020 and 2021. However, from 2021 onwards, a consistent increase is apparent, culminating in $696.693 million in 2025. The growth in the consolidated value is largely driven by the increasing value in the “Other” geographic area in the later periods.
The proportion of property and equipment, net, located in the “Other” geographic area is increasing over time. In 2020, the United States accounted for approximately 64.3% of the consolidated total, while “Other” represented 35.7%. By 2025, the United States proportion has decreased to approximately 47.0%, with “Other” accounting for 53.0%. This shift suggests a strategic reallocation of assets or increased investment in regions outside of the United States.
The most significant growth in property and equipment, net, occurs between 2023 and 2025, primarily within the “Other” geographic area. This period warrants further investigation to understand the underlying drivers of this expansion.