Analysis of Solvency Ratios
Quarterly Data
Solvency ratios also known as long-term debt ratios measure a company ability to meet long-term obligations.
Solvency Ratios (Summary)
Synopsys Inc., solvency ratios (quarterly data)
Based on: 10-Q (reporting date: 2026-04-30), 10-Q (reporting date: 2026-01-31), 10-K (reporting date: 2025-10-31), 10-Q (reporting date: 2025-07-31), 10-Q (reporting date: 2025-04-30), 10-Q (reporting date: 2025-01-31), 10-K (reporting date: 2024-10-31), 10-Q (reporting date: 2024-07-31), 10-Q (reporting date: 2024-04-30), 10-Q (reporting date: 2024-01-31), 10-K (reporting date: 2023-10-31), 10-Q (reporting date: 2023-07-31), 10-Q (reporting date: 2023-04-30), 10-Q (reporting date: 2023-01-31), 10-K (reporting date: 2022-10-31), 10-Q (reporting date: 2022-07-31), 10-Q (reporting date: 2022-04-30), 10-Q (reporting date: 2022-01-31), 10-K (reporting date: 2021-10-31), 10-Q (reporting date: 2021-07-31), 10-Q (reporting date: 2021-04-30), 10-Q (reporting date: 2021-01-31).
The solvency profile of the organization underwent a significant transition between January 2021 and April 2026, characterized by a prolonged period of minimal leverage followed by a substantial increase in debt obligations in early 2025 and a subsequent deleveraging trend.
- Debt Ratio Trends
- From January 2021 through January 2025, debt-to-equity, debt-to-capital, and debt-to-assets ratios remained negligible, frequently reaching 0.00. This indicates a capital structure that was almost entirely funded by equity during this period. A sharp inflection point occurred in April 2025, where the debt-to-equity ratio peaked at 1.01 and the debt-to-assets ratio rose to 0.42. Following this spike, a consistent downward trend is observed, with the debt-to-equity ratio reducing to 0.33 and the debt-to-assets ratio falling to 0.21 by April 2026.
- Impact of Operating Lease Liabilities
- Solvency ratios inclusive of operating lease liabilities mirrored the primary debt trends but remained consistently higher. These ratios declined from a range of 0.13 to 0.07 between January 2021 and January 2025, peaked at 1.08 in April 2025, and subsequently decreased to 0.36 by April 2026.
- Financial Leverage
- Financial leverage remained relatively stable between 1.40 and 1.71 for the majority of the observed period. A significant peak was recorded in April 2025 at 2.40, coinciding with the surge in debt ratios, before normalizing to 1.54 by April 2026.
- Interest Coverage Analysis
- Interest coverage exhibits a precipitous and continuous decline beginning in January 2024. The ratio dropped from an exceptionally high 852.56 in January 2024 to 31.24 by January 2025, and further contracted to 2.26 by April 2026. This trend indicates a substantial increase in the burden of interest expenses relative to earnings, coinciding with the increased leverage adopted in 2025.
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Debt Ratios
Coverage Ratios
Debt to Equity
Synopsys Inc., debt to equity calculation (quarterly data)
| Apr 30, 2026 | Jan 31, 2026 | Oct 31, 2025 | Jul 31, 2025 | Apr 30, 2025 | Jan 31, 2025 | Oct 31, 2024 | Jul 31, 2024 | Apr 30, 2024 | Jan 31, 2024 | Oct 31, 2023 | Jul 31, 2023 | Apr 30, 2023 | Jan 31, 2023 | Oct 31, 2022 | Jul 31, 2022 | Apr 30, 2022 | Jan 31, 2022 | Oct 31, 2021 | Jul 31, 2021 | Apr 30, 2021 | Jan 31, 2021 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | |||||||||||||||||||||||||||||
| Short-term debt | 22,117) | 22,117) | 22,117) | 22,117) | 22,962) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | 74,992) | 82,468) | 89,945) | 97,421) | |||||||
| Long-term debt | 10,013,845) | 10,022,093) | 13,462,398) | 14,318,016) | 10,027,681) | 14,220) | 15,601) | 15,599) | 16,960) | 16,951) | 18,078) | 18,165) | 20,201) | 20,569) | 20,824) | 21,960) | 23,775) | 24,370) | 25,094) | 24,754) | 25,620) | 25,658) | |||||||
| Total debt | 10,035,962) | 10,044,210) | 13,484,515) | 14,340,133) | 10,050,643) | 14,220) | 15,601) | 15,599) | 16,960) | 16,951) | 18,078) | 18,165) | 20,201) | 20,569) | 20,824) | 21,960) | 23,775) | 24,370) | 100,086) | 107,222) | 115,565) | 123,079) | |||||||
| Total Synopsys stockholders’ equity | 30,478,131) | 30,548,827) | 28,327,602) | 27,614,531) | 9,915,718) | 9,304,792) | 8,990,702) | 7,709,396) | 7,153,160) | 6,670,984) | 6,147,308) | 5,958,555) | 5,831,859) | 5,636,754) | 5,515,725) | 5,604,026) | 5,564,311) | 5,386,773) | 5,295,137) | 5,151,020) | 5,088,135) | 4,882,252) | |||||||
| Solvency Ratio | |||||||||||||||||||||||||||||
| Debt to equity1 | 0.33 | 0.33 | 0.48 | 0.52 | 1.01 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.02 | 0.02 | 0.02 | 0.03 | |||||||
| Benchmarks | |||||||||||||||||||||||||||||
| Debt to Equity, Competitors2 | |||||||||||||||||||||||||||||
| Accenture PLC | 0.16 | 0.17 | 0.17 | 0.17 | 0.18 | 0.18 | 0.04 | 0.06 | 0.01 | 0.01 | 0.01 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | |||||||
| Adobe Inc. | 0.58 | 0.54 | 0.53 | 0.53 | 0.54 | 0.47 | 0.40 | 0.39 | 0.38 | 0.24 | 0.22 | 0.23 | 0.24 | 0.26 | 0.29 | 0.29 | 0.30 | 0.30 | 0.28 | 0.29 | 0.30 | 0.30 | |||||||
| AppLovin Corp. | — | 1.49 | 1.65 | 2.38 | 3.01 | 6.45 | 3.22 | 3.74 | 4.32 | 4.64 | 2.48 | 2.85 | 2.11 | 1.69 | 1.69 | 1.71 | 1.69 | 1.60 | — | — | — | — | |||||||
| Cadence Design Systems Inc. | — | 0.44 | 0.45 | 0.48 | 0.49 | 0.52 | 0.53 | 0.62 | 0.32 | 0.18 | 0.19 | 0.21 | 0.22 | 0.23 | 0.27 | 0.29 | 0.13 | 0.13 | — | — | — | — | |||||||
| CrowdStrike Holdings Inc. | 0.20 | 0.22 | 0.23 | 0.24 | 0.26 | 0.29 | 0.32 | 0.37 | 0.40 | 0.46 | 0.51 | 0.56 | 0.60 | 0.67 | 0.72 | 0.78 | 0.82 | 0.87 | — | — | — | — | |||||||
| Datadog Inc. | — | 0.25 | 0.26 | 0.29 | 0.31 | 0.55 | 0.59 | 0.28 | 0.31 | 0.34 | 0.37 | 0.41 | 0.45 | 0.49 | 0.52 | 0.57 | 0.61 | 0.66 | — | — | — | — | |||||||
| International Business Machines Corp. | — | 2.01 | 1.88 | 2.26 | 2.33 | 2.35 | 2.01 | 2.31 | 2.35 | 2.56 | 2.51 | 2.39 | 2.59 | 2.72 | 2.32 | 2.53 | 2.59 | 2.85 | — | — | — | — | |||||||
| Intuit Inc. | 0.32 | 0.32 | 0.30 | 0.32 | 0.35 | 0.34 | 0.33 | 0.32 | 0.35 | 0.35 | 0.35 | 0.38 | 0.45 | 0.43 | 0.42 | 0.40 | 0.43 | 0.21 | 0.21 | 0.20 | 0.27 | 0.45 | |||||||
| Microsoft Corp. | 0.10 | 0.12 | 0.13 | 0.13 | 0.15 | 0.16 | 0.19 | 0.26 | 0.31 | 0.32 | 0.23 | 0.25 | 0.26 | 0.28 | 0.30 | 0.31 | 0.33 | 0.35 | 0.41 | 0.43 | 0.46 | 0.52 | |||||||
| Oracle Corp. | 3.61 | 3.78 | 4.53 | 5.75 | 6.45 | 7.81 | 9.98 | 15.65 | 22.97 | 37.53 | 84.33 | — | — | — | — | — | — | — | — | — | — | — | |||||||
| Palantir Technologies Inc. | — | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | — | — | — | — | |||||||
| Palo Alto Networks Inc. | 0.00 | 0.00 | 0.00 | 0.05 | 0.08 | 0.11 | 0.19 | 0.26 | 0.42 | 0.90 | 1.14 | 2.99 | 5.05 | 7.24 | 17.51 | 10.89 | 31.19 | 7.08 | 5.08 | 3.20 | 3.04 | 4.18 | |||||||
| Salesforce Inc. | 0.14 | 0.14 | 0.14 | 0.14 | 0.15 | 0.16 | 0.16 | 0.16 | 0.16 | 0.17 | 0.18 | 0.18 | 0.18 | 0.18 | 0.18 | 0.19 | 0.24 | 0.06 | — | — | — | — | |||||||
| ServiceNow Inc. | — | 0.13 | 0.12 | 0.13 | 0.14 | 0.15 | 0.15 | 0.16 | 0.17 | 0.18 | 0.20 | 0.21 | 0.21 | 0.27 | 0.30 | 0.33 | 0.35 | 0.39 | — | — | — | — | |||||||
| Workday Inc. | 0.33 | 0.33 | 0.33 | 0.35 | 0.36 | 0.37 | 0.37 | 0.45 | 0.47 | 0.50 | 0.53 | 0.55 | 0.80 | 0.86 | 0.41 | 0.44 | 0.48 | 0.55 | — | — | — | — | |||||||
Based on: 10-Q (reporting date: 2026-04-30), 10-Q (reporting date: 2026-01-31), 10-K (reporting date: 2025-10-31), 10-Q (reporting date: 2025-07-31), 10-Q (reporting date: 2025-04-30), 10-Q (reporting date: 2025-01-31), 10-K (reporting date: 2024-10-31), 10-Q (reporting date: 2024-07-31), 10-Q (reporting date: 2024-04-30), 10-Q (reporting date: 2024-01-31), 10-K (reporting date: 2023-10-31), 10-Q (reporting date: 2023-07-31), 10-Q (reporting date: 2023-04-30), 10-Q (reporting date: 2023-01-31), 10-K (reporting date: 2022-10-31), 10-Q (reporting date: 2022-07-31), 10-Q (reporting date: 2022-04-30), 10-Q (reporting date: 2022-01-31), 10-K (reporting date: 2021-10-31), 10-Q (reporting date: 2021-07-31), 10-Q (reporting date: 2021-04-30), 10-Q (reporting date: 2021-01-31).
1 Q2 2026 Calculation
Debt to equity = Total debt ÷ Total Synopsys stockholders’ equity
= 10,035,962 ÷ 30,478,131 = 0.33
2 Click competitor name to see calculations.
The analysis of the solvency metrics reveals a dramatic transition in the capital structure, moving from a period of negligible leverage to a significant financing event, followed by a phase of rapid equity expansion and ratio stabilization.
- Deleveraging and Minimal Risk Phase (January 2021 – January 2025)
- During this period, a consistent downward trend in total debt was observed, falling from 123.1 million US dollars in January 2021 to 14.2 million US dollars by January 2025. Concurrently, stockholders' equity grew steadily from approximately 4.9 billion US dollars to 9.3 billion US dollars. This divergence resulted in a debt-to-equity ratio that declined from 0.03 to 0.00, indicating a period of extremely low financial risk and a reliance almost exclusively on internal funding and equity.
- Capital Structure Shock (April 2025)
- A significant structural shift occurred in April 2025, characterized by a massive increase in total debt, which surged from 14.2 million US dollars to over 10 billion US dollars. This spike caused the debt-to-equity ratio to jump from 0.00 to 1.01, marking the first instance in the observed period where total debt exceeded total stockholders' equity. This pattern is consistent with a large-scale strategic financing event or acquisition.
- Equity Surge and Ratio Normalization (July 2025 – April 2026)
- Following the debt spike, a substantial increase in stockholders' equity was recorded, jumping from 9.9 billion US dollars in April 2025 to 27.6 billion US dollars by July 2025, and eventually reaching 30.5 billion US dollars by January 2026. While total debt remained elevated—peaking at 14.3 billion US dollars in July 2025—the aggressive growth in equity served to rapidly deleverage the balance sheet. Consequently, the debt-to-equity ratio declined from its peak of 1.01 to 0.33 by April 2026.
- Overall Solvency Trend
- The long-term trend indicates a transition from a virtually debt-free operation to a leveraged position, which was subsequently balanced by a massive expansion of the equity base. By the end of the analyzed period, the solvency position stabilized at a debt-to-equity ratio of 0.33, suggesting a managed approach to leverage where equity growth continues to outpace debt accumulation.
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Debt to Equity (including Operating Lease Liability)
Synopsys Inc., debt to equity (including operating lease liability) calculation (quarterly data)
| Apr 30, 2026 | Jan 31, 2026 | Oct 31, 2025 | Jul 31, 2025 | Apr 30, 2025 | Jan 31, 2025 | Oct 31, 2024 | Jul 31, 2024 | Apr 30, 2024 | Jan 31, 2024 | Oct 31, 2023 | Jul 31, 2023 | Apr 30, 2023 | Jan 31, 2023 | Oct 31, 2022 | Jul 31, 2022 | Apr 30, 2022 | Jan 31, 2022 | Oct 31, 2021 | Jul 31, 2021 | Apr 30, 2021 | Jan 31, 2021 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | |||||||||||||||||||||||||||||
| Short-term debt | 22,117) | 22,117) | 22,117) | 22,117) | 22,962) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | 74,992) | 82,468) | 89,945) | 97,421) | |||||||
| Long-term debt | 10,013,845) | 10,022,093) | 13,462,398) | 14,318,016) | 10,027,681) | 14,220) | 15,601) | 15,599) | 16,960) | 16,951) | 18,078) | 18,165) | 20,201) | 20,569) | 20,824) | 21,960) | 23,775) | 24,370) | 25,094) | 24,754) | 25,620) | 25,658) | |||||||
| Total debt | 10,035,962) | 10,044,210) | 13,484,515) | 14,340,133) | 10,050,643) | 14,220) | 15,601) | 15,599) | 16,960) | 16,951) | 18,078) | 18,165) | 20,201) | 20,569) | 20,824) | 21,960) | 23,775) | 24,370) | 100,086) | 107,222) | 115,565) | 123,079) | |||||||
| Current operating lease liabilities | 135,523) | 133,098) | 128,205) | 127,452) | 104,170) | 99,310) | 94,791) | 89,869) | 84,550) | 89,194) | 85,690) | 80,192) | 78,056) | 66,326) | 54,274) | 54,170) | 55,170) | 78,748) | 79,678) | 79,289) | 77,610) | 72,769) | |||||||
| Long-term operating lease liabilities | 670,475) | 691,249) | 680,698) | 672,729) | 587,438) | 551,507) | 574,065) | 568,407) | 543,207) | 563,815) | 584,035) | 590,827) | 591,667) | 603,538) | 581,273) | 592,930) | 601,317) | 477,487) | 487,003) | 487,574) | 498,953) | 459,880) | |||||||
| Total debt (including operating lease liability) | 10,841,960) | 10,868,557) | 14,293,418) | 15,140,314) | 10,742,251) | 665,037) | 684,457) | 673,875) | 644,717) | 669,960) | 687,803) | 689,184) | 689,924) | 690,433) | 656,371) | 669,060) | 680,262) | 580,605) | 666,767) | 674,085) | 692,128) | 655,728) | |||||||
| Total Synopsys stockholders’ equity | 30,478,131) | 30,548,827) | 28,327,602) | 27,614,531) | 9,915,718) | 9,304,792) | 8,990,702) | 7,709,396) | 7,153,160) | 6,670,984) | 6,147,308) | 5,958,555) | 5,831,859) | 5,636,754) | 5,515,725) | 5,604,026) | 5,564,311) | 5,386,773) | 5,295,137) | 5,151,020) | 5,088,135) | 4,882,252) | |||||||
| Solvency Ratio | |||||||||||||||||||||||||||||
| Debt to equity (including operating lease liability)1 | 0.36 | 0.36 | 0.50 | 0.55 | 1.08 | 0.07 | 0.08 | 0.09 | 0.09 | 0.10 | 0.11 | 0.12 | 0.12 | 0.12 | 0.12 | 0.12 | 0.12 | 0.11 | 0.13 | 0.13 | 0.14 | 0.13 | |||||||
| Benchmarks | |||||||||||||||||||||||||||||
| Debt to Equity (including Operating Lease Liability), Competitors2 | |||||||||||||||||||||||||||||
| Accenture PLC | 0.27 | 0.27 | 0.26 | 0.27 | 0.28 | 0.28 | 0.15 | 0.17 | 0.12 | 0.12 | 0.12 | 0.12 | 0.14 | 0.14 | 0.15 | 0.16 | 0.17 | 0.17 | 0.18 | 0.18 | 0.19 | 0.19 | |||||||
| Adobe Inc. | 0.61 | 0.58 | 0.57 | 0.56 | 0.57 | 0.50 | 0.43 | 0.42 | 0.41 | 0.26 | 0.25 | 0.26 | 0.28 | 0.29 | 0.33 | 0.32 | 0.33 | 0.34 | 0.32 | 0.33 | 0.34 | 0.35 | |||||||
| CrowdStrike Holdings Inc. | 0.22 | 0.23 | 0.24 | 0.26 | 0.28 | 0.31 | 0.34 | 0.39 | 0.43 | 0.49 | 0.54 | 0.59 | 0.63 | 0.70 | 0.76 | 0.82 | 0.86 | 0.92 | — | — | — | — | |||||||
| Datadog Inc. | — | 0.32 | 0.34 | 0.37 | 0.40 | 0.64 | 0.68 | 0.37 | 0.40 | 0.43 | 0.45 | 0.49 | 0.54 | 0.56 | 0.59 | 0.65 | 0.67 | 0.72 | — | — | — | — | |||||||
| International Business Machines Corp. | — | 2.12 | 1.98 | 2.39 | 2.46 | 2.49 | 2.14 | 2.46 | 2.49 | 2.70 | 2.66 | 2.54 | 2.72 | 2.85 | 2.46 | 2.68 | 2.75 | 3.02 | — | — | — | — | |||||||
| Intuit Inc. | 0.36 | 0.35 | 0.33 | 0.35 | 0.38 | 0.37 | 0.35 | 0.34 | 0.38 | 0.37 | 0.38 | 0.40 | 0.48 | 0.47 | 0.45 | 0.43 | 0.46 | 0.25 | 0.24 | 0.24 | 0.31 | 0.49 | |||||||
| Microsoft Corp. | 0.15 | 0.17 | 0.18 | 0.19 | 0.21 | 0.21 | 0.25 | 0.32 | 0.37 | 0.39 | 0.29 | 0.31 | 0.33 | 0.35 | 0.37 | 0.38 | 0.40 | 0.42 | 0.48 | 0.50 | 0.53 | 0.58 | |||||||
| Oracle Corp. | 4.15 | 4.36 | 5.09 | 5.75 | 6.45 | 7.81 | 9.98 | 15.65 | 22.97 | 37.53 | 84.33 | — | — | — | — | — | — | — | — | — | — | — | |||||||
| Palantir Technologies Inc. | — | 0.03 | 0.02 | 0.03 | 0.03 | 0.04 | 0.04 | 0.05 | 0.05 | 0.04 | 0.05 | 0.06 | 0.07 | 0.08 | 0.08 | 0.09 | 0.09 | 0.10 | — | — | — | — | |||||||
| Palo Alto Networks Inc. | 0.04 | 0.04 | 0.04 | 0.10 | 0.14 | 0.17 | 0.26 | 0.34 | 0.50 | 1.02 | 1.30 | 3.20 | 5.42 | 7.80 | 18.82 | 11.70 | 33.58 | 7.65 | 5.58 | 3.52 | 3.35 | 4.61 | |||||||
| Salesforce Inc. | 0.18 | 0.19 | 0.19 | 0.20 | 0.20 | 0.21 | 0.21 | 0.22 | 0.22 | 0.23 | 0.24 | 0.24 | 0.23 | 0.24 | 0.24 | 0.25 | 0.30 | 0.14 | — | — | — | — | |||||||
| ServiceNow Inc. | — | 0.21 | 0.19 | 0.21 | 0.22 | 0.24 | 0.24 | 0.24 | 0.26 | 0.28 | 0.30 | 0.31 | 0.32 | 0.40 | 0.44 | 0.47 | 0.51 | 0.55 | — | — | — | — | |||||||
| Workday Inc. | 0.41 | 0.38 | 0.37 | 0.39 | 0.40 | 0.41 | 0.41 | 0.49 | 0.52 | 0.55 | 0.58 | 0.60 | 0.86 | 0.92 | 0.46 | 0.51 | 0.56 | 0.63 | — | — | — | — | |||||||
Based on: 10-Q (reporting date: 2026-04-30), 10-Q (reporting date: 2026-01-31), 10-K (reporting date: 2025-10-31), 10-Q (reporting date: 2025-07-31), 10-Q (reporting date: 2025-04-30), 10-Q (reporting date: 2025-01-31), 10-K (reporting date: 2024-10-31), 10-Q (reporting date: 2024-07-31), 10-Q (reporting date: 2024-04-30), 10-Q (reporting date: 2024-01-31), 10-K (reporting date: 2023-10-31), 10-Q (reporting date: 2023-07-31), 10-Q (reporting date: 2023-04-30), 10-Q (reporting date: 2023-01-31), 10-K (reporting date: 2022-10-31), 10-Q (reporting date: 2022-07-31), 10-Q (reporting date: 2022-04-30), 10-Q (reporting date: 2022-01-31), 10-K (reporting date: 2021-10-31), 10-Q (reporting date: 2021-07-31), 10-Q (reporting date: 2021-04-30), 10-Q (reporting date: 2021-01-31).
1 Q2 2026 Calculation
Debt to equity (including operating lease liability) = Total debt (including operating lease liability) ÷ Total Synopsys stockholders’ equity
= 10,841,960 ÷ 30,478,131 = 0.36
2 Click competitor name to see calculations.
A distinct shift in the solvency profile is evident over the analyzed period, transitioning from a phase of minimal leverage to a period of significant capital expansion starting in the second quarter of 2025. The organization maintained a conservative debt posture for several years before undergoing a substantial increase in both total obligations and equity capitalization.
- Total Debt Trends
- From January 2021 through January 2025, total debt, including operating lease liabilities, remained remarkably stable, fluctuating within a narrow range between 580 million and 692 million US dollars. A sharp inflection point occurred on April 30, 2025, when debt levels surged to 10.7 billion US dollars. This upward trend peaked at 15.1 billion US dollars by July 31, 2025, before gradually declining to 10.8 billion US dollars by April 30, 2026.
- Stockholders' Equity Evolution
- Equity demonstrated consistent organic growth from January 2021 to January 2025, increasing from 4.88 billion to 9.30 billion US dollars. Parallel to the increase in debt, equity experienced a massive jump on April 30, 2025, rising to 27.6 billion US dollars. This growth continued through January 31, 2026, reaching a peak of 30.5 billion US dollars, suggesting a significant capital injection or acquisition-related accounting event.
- Debt to Equity Ratio Analysis
- The debt to equity ratio remained low and improved steadily from 0.13 in early 2021 to 0.07 by January 2025, indicating a strong solvency position. A dramatic spike to 1.08 was recorded in April 2025, representing the highest leverage point in the sequence. Following this peak, the ratio entered a downward trend as equity growth outpaced debt accumulation, settling at 0.36 by April 30, 2026.
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Debt to Capital
Synopsys Inc., debt to capital calculation (quarterly data)
| Apr 30, 2026 | Jan 31, 2026 | Oct 31, 2025 | Jul 31, 2025 | Apr 30, 2025 | Jan 31, 2025 | Oct 31, 2024 | Jul 31, 2024 | Apr 30, 2024 | Jan 31, 2024 | Oct 31, 2023 | Jul 31, 2023 | Apr 30, 2023 | Jan 31, 2023 | Oct 31, 2022 | Jul 31, 2022 | Apr 30, 2022 | Jan 31, 2022 | Oct 31, 2021 | Jul 31, 2021 | Apr 30, 2021 | Jan 31, 2021 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | |||||||||||||||||||||||||||||
| Short-term debt | 22,117) | 22,117) | 22,117) | 22,117) | 22,962) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | 74,992) | 82,468) | 89,945) | 97,421) | |||||||
| Long-term debt | 10,013,845) | 10,022,093) | 13,462,398) | 14,318,016) | 10,027,681) | 14,220) | 15,601) | 15,599) | 16,960) | 16,951) | 18,078) | 18,165) | 20,201) | 20,569) | 20,824) | 21,960) | 23,775) | 24,370) | 25,094) | 24,754) | 25,620) | 25,658) | |||||||
| Total debt | 10,035,962) | 10,044,210) | 13,484,515) | 14,340,133) | 10,050,643) | 14,220) | 15,601) | 15,599) | 16,960) | 16,951) | 18,078) | 18,165) | 20,201) | 20,569) | 20,824) | 21,960) | 23,775) | 24,370) | 100,086) | 107,222) | 115,565) | 123,079) | |||||||
| Total Synopsys stockholders’ equity | 30,478,131) | 30,548,827) | 28,327,602) | 27,614,531) | 9,915,718) | 9,304,792) | 8,990,702) | 7,709,396) | 7,153,160) | 6,670,984) | 6,147,308) | 5,958,555) | 5,831,859) | 5,636,754) | 5,515,725) | 5,604,026) | 5,564,311) | 5,386,773) | 5,295,137) | 5,151,020) | 5,088,135) | 4,882,252) | |||||||
| Total capital | 40,514,093) | 40,593,037) | 41,812,117) | 41,954,664) | 19,966,361) | 9,319,012) | 9,006,303) | 7,724,995) | 7,170,120) | 6,687,935) | 6,165,386) | 5,976,720) | 5,852,060) | 5,657,323) | 5,536,549) | 5,625,986) | 5,588,086) | 5,411,143) | 5,395,223) | 5,258,242) | 5,203,700) | 5,005,331) | |||||||
| Solvency Ratio | |||||||||||||||||||||||||||||
| Debt to capital1 | 0.25 | 0.25 | 0.32 | 0.34 | 0.50 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.02 | 0.02 | 0.02 | 0.02 | |||||||
| Benchmarks | |||||||||||||||||||||||||||||
| Debt to Capital, Competitors2 | |||||||||||||||||||||||||||||
| Accenture PLC | 0.14 | 0.14 | 0.14 | 0.14 | 0.15 | 0.15 | 0.03 | 0.06 | 0.01 | 0.01 | 0.01 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | |||||||
| Adobe Inc. | 0.37 | 0.35 | 0.35 | 0.35 | 0.35 | 0.32 | 0.29 | 0.28 | 0.27 | 0.19 | 0.18 | 0.19 | 0.20 | 0.20 | 0.23 | 0.22 | 0.23 | 0.23 | 0.22 | 0.22 | 0.23 | 0.23 | |||||||
| AppLovin Corp. | — | 0.60 | 0.62 | 0.70 | 0.75 | 0.87 | 0.76 | 0.79 | 0.81 | 0.82 | 0.71 | 0.74 | 0.68 | 0.63 | 0.63 | 0.63 | 0.63 | 0.62 | — | — | — | — | |||||||
| Cadence Design Systems Inc. | — | 0.31 | 0.31 | 0.32 | 0.33 | 0.34 | 0.35 | 0.38 | 0.24 | 0.15 | 0.16 | 0.17 | 0.18 | 0.19 | 0.21 | 0.23 | 0.12 | 0.11 | — | — | — | — | |||||||
| CrowdStrike Holdings Inc. | 0.17 | 0.18 | 0.18 | 0.20 | 0.21 | 0.23 | 0.24 | 0.27 | 0.29 | 0.32 | 0.34 | 0.36 | 0.38 | 0.40 | 0.42 | 0.44 | 0.45 | 0.47 | — | — | — | — | |||||||
| Datadog Inc. | — | 0.20 | 0.21 | 0.22 | 0.23 | 0.36 | 0.37 | 0.22 | 0.24 | 0.25 | 0.27 | 0.29 | 0.31 | 0.33 | 0.34 | 0.36 | 0.38 | 0.40 | — | — | — | — | |||||||
| International Business Machines Corp. | — | 0.67 | 0.65 | 0.69 | 0.70 | 0.70 | 0.67 | 0.70 | 0.70 | 0.72 | 0.72 | 0.71 | 0.72 | 0.73 | 0.70 | 0.72 | 0.72 | 0.74 | — | — | — | — | |||||||
| Intuit Inc. | 0.24 | 0.24 | 0.23 | 0.24 | 0.26 | 0.25 | 0.25 | 0.24 | 0.26 | 0.26 | 0.26 | 0.27 | 0.31 | 0.30 | 0.30 | 0.29 | 0.30 | 0.17 | 0.17 | 0.17 | 0.21 | 0.31 | |||||||
| Microsoft Corp. | 0.09 | 0.11 | 0.11 | 0.12 | 0.13 | 0.14 | 0.16 | 0.21 | 0.24 | 0.24 | 0.19 | 0.20 | 0.21 | 0.22 | 0.23 | 0.23 | 0.25 | 0.26 | 0.29 | 0.30 | 0.32 | 0.34 | |||||||
| Oracle Corp. | 0.78 | 0.79 | 0.82 | 0.85 | 0.87 | 0.89 | 0.91 | 0.94 | 0.96 | 0.97 | 0.99 | 1.03 | 1.05 | 1.07 | 1.09 | 1.12 | 1.15 | 1.02 | — | — | — | — | |||||||
| Palantir Technologies Inc. | — | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | — | — | — | — | |||||||
| Palo Alto Networks Inc. | 0.00 | 0.00 | 0.00 | 0.05 | 0.08 | 0.10 | 0.16 | 0.21 | 0.29 | 0.47 | 0.53 | 0.75 | 0.83 | 0.88 | 0.95 | 0.92 | 0.97 | 0.88 | 0.84 | 0.76 | 0.75 | 0.81 | |||||||
| Salesforce Inc. | 0.12 | 0.12 | 0.12 | 0.13 | 0.13 | 0.14 | 0.14 | 0.14 | 0.14 | 0.14 | 0.15 | 0.15 | 0.15 | 0.15 | 0.15 | 0.16 | 0.19 | 0.06 | — | — | — | — | |||||||
| ServiceNow Inc. | — | 0.11 | 0.10 | 0.12 | 0.12 | 0.13 | 0.13 | 0.14 | 0.15 | 0.16 | 0.16 | 0.17 | 0.18 | 0.21 | 0.23 | 0.25 | 0.26 | 0.28 | — | — | — | — | |||||||
| Workday Inc. | 0.25 | 0.25 | 0.25 | 0.26 | 0.26 | 0.27 | 0.27 | 0.31 | 0.32 | 0.33 | 0.35 | 0.35 | 0.45 | 0.46 | 0.29 | 0.30 | 0.32 | 0.35 | — | — | — | — | |||||||
Based on: 10-Q (reporting date: 2026-04-30), 10-Q (reporting date: 2026-01-31), 10-K (reporting date: 2025-10-31), 10-Q (reporting date: 2025-07-31), 10-Q (reporting date: 2025-04-30), 10-Q (reporting date: 2025-01-31), 10-K (reporting date: 2024-10-31), 10-Q (reporting date: 2024-07-31), 10-Q (reporting date: 2024-04-30), 10-Q (reporting date: 2024-01-31), 10-K (reporting date: 2023-10-31), 10-Q (reporting date: 2023-07-31), 10-Q (reporting date: 2023-04-30), 10-Q (reporting date: 2023-01-31), 10-K (reporting date: 2022-10-31), 10-Q (reporting date: 2022-07-31), 10-Q (reporting date: 2022-04-30), 10-Q (reporting date: 2022-01-31), 10-K (reporting date: 2021-10-31), 10-Q (reporting date: 2021-07-31), 10-Q (reporting date: 2021-04-30), 10-Q (reporting date: 2021-01-31).
1 Q2 2026 Calculation
Debt to capital = Total debt ÷ Total capital
= 10,035,962 ÷ 40,514,093 = 0.25
2 Click competitor name to see calculations.
The financial trajectory of the company exhibits two distinct phases: a prolonged period of aggressive deleveraging followed by a significant capital expansion event starting in the second quarter of 2025. For the majority of the analyzed period, the company maintained a negligible debt profile relative to its capital base, which shifted abruptly due to a massive increase in both total debt and total capital.
- Debt to Capital Ratio Trends
- From January 2021 through January 2025, the debt to capital ratio remained essentially stagnant at or near 0.00, indicating a nearly debt-free capital structure. This period of minimal leverage was interrupted in April 2025, when the ratio spiked to 0.50. Following this peak, a consistent downward trend is observed, with the ratio declining to 0.34 in July 2025 and stabilizing at 0.25 by April 2026. This suggests a strategic shift toward higher leverage followed by a systematic effort to reduce the debt burden.
- Total Debt Volatility
- Total debt levels were characterized by a steady decline from January 2021 ($123.1 million) to January 2025 ($14.2 million). However, a structural break occurred in April 2025, where debt escalated from millions to billions, reaching $10.1 billion. Debt peaked in July 2025 at $14.3 billion before moderating to approximately $10.0 billion by April 2026. The scale of this increase indicates a major financing event or a large-scale acquisition.
- Total Capital Expansion
- Total capital grew steadily from $5.0 billion in early 2021 to $9.3 billion by January 2025. Coinciding with the surge in debt, total capital jumped to $19.9 billion in April 2025 and further peaked at $41.9 billion in July 2025. The capital base remained elevated through April 2026, settling at $40.5 billion. The simultaneous rise in both debt and total capital suggests that the increase in liabilities was paired with a substantial increase in the company's overall asset or equity base.
The data indicates that the company transitioned from a conservative, low-risk solvency position to a more leveraged posture in 2025. The subsequent reduction in the debt to capital ratio from 0.50 to 0.25 over the final year of the data suggests a focused transition toward re-establishing financial stability following a period of significant capital deployment.
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Debt to Capital (including Operating Lease Liability)
Synopsys Inc., debt to capital (including operating lease liability) calculation (quarterly data)
| Apr 30, 2026 | Jan 31, 2026 | Oct 31, 2025 | Jul 31, 2025 | Apr 30, 2025 | Jan 31, 2025 | Oct 31, 2024 | Jul 31, 2024 | Apr 30, 2024 | Jan 31, 2024 | Oct 31, 2023 | Jul 31, 2023 | Apr 30, 2023 | Jan 31, 2023 | Oct 31, 2022 | Jul 31, 2022 | Apr 30, 2022 | Jan 31, 2022 | Oct 31, 2021 | Jul 31, 2021 | Apr 30, 2021 | Jan 31, 2021 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | |||||||||||||||||||||||||||||
| Short-term debt | 22,117) | 22,117) | 22,117) | 22,117) | 22,962) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | 74,992) | 82,468) | 89,945) | 97,421) | |||||||
| Long-term debt | 10,013,845) | 10,022,093) | 13,462,398) | 14,318,016) | 10,027,681) | 14,220) | 15,601) | 15,599) | 16,960) | 16,951) | 18,078) | 18,165) | 20,201) | 20,569) | 20,824) | 21,960) | 23,775) | 24,370) | 25,094) | 24,754) | 25,620) | 25,658) | |||||||
| Total debt | 10,035,962) | 10,044,210) | 13,484,515) | 14,340,133) | 10,050,643) | 14,220) | 15,601) | 15,599) | 16,960) | 16,951) | 18,078) | 18,165) | 20,201) | 20,569) | 20,824) | 21,960) | 23,775) | 24,370) | 100,086) | 107,222) | 115,565) | 123,079) | |||||||
| Current operating lease liabilities | 135,523) | 133,098) | 128,205) | 127,452) | 104,170) | 99,310) | 94,791) | 89,869) | 84,550) | 89,194) | 85,690) | 80,192) | 78,056) | 66,326) | 54,274) | 54,170) | 55,170) | 78,748) | 79,678) | 79,289) | 77,610) | 72,769) | |||||||
| Long-term operating lease liabilities | 670,475) | 691,249) | 680,698) | 672,729) | 587,438) | 551,507) | 574,065) | 568,407) | 543,207) | 563,815) | 584,035) | 590,827) | 591,667) | 603,538) | 581,273) | 592,930) | 601,317) | 477,487) | 487,003) | 487,574) | 498,953) | 459,880) | |||||||
| Total debt (including operating lease liability) | 10,841,960) | 10,868,557) | 14,293,418) | 15,140,314) | 10,742,251) | 665,037) | 684,457) | 673,875) | 644,717) | 669,960) | 687,803) | 689,184) | 689,924) | 690,433) | 656,371) | 669,060) | 680,262) | 580,605) | 666,767) | 674,085) | 692,128) | 655,728) | |||||||
| Total Synopsys stockholders’ equity | 30,478,131) | 30,548,827) | 28,327,602) | 27,614,531) | 9,915,718) | 9,304,792) | 8,990,702) | 7,709,396) | 7,153,160) | 6,670,984) | 6,147,308) | 5,958,555) | 5,831,859) | 5,636,754) | 5,515,725) | 5,604,026) | 5,564,311) | 5,386,773) | 5,295,137) | 5,151,020) | 5,088,135) | 4,882,252) | |||||||
| Total capital (including operating lease liability) | 41,320,091) | 41,417,384) | 42,621,020) | 42,754,845) | 20,657,969) | 9,969,829) | 9,675,159) | 8,383,271) | 7,797,877) | 7,340,944) | 6,835,111) | 6,647,739) | 6,521,783) | 6,327,187) | 6,172,096) | 6,273,086) | 6,244,573) | 5,967,378) | 5,961,904) | 5,825,105) | 5,780,263) | 5,537,980) | |||||||
| Solvency Ratio | |||||||||||||||||||||||||||||
| Debt to capital (including operating lease liability)1 | 0.26 | 0.26 | 0.34 | 0.35 | 0.52 | 0.07 | 0.07 | 0.08 | 0.08 | 0.09 | 0.10 | 0.10 | 0.11 | 0.11 | 0.11 | 0.11 | 0.11 | 0.10 | 0.11 | 0.12 | 0.12 | 0.12 | |||||||
| Benchmarks | |||||||||||||||||||||||||||||
| Debt to Capital (including Operating Lease Liability), Competitors2 | |||||||||||||||||||||||||||||
| Accenture PLC | 0.21 | 0.21 | 0.21 | 0.21 | 0.22 | 0.22 | 0.13 | 0.14 | 0.10 | 0.10 | 0.11 | 0.11 | 0.12 | 0.13 | 0.13 | 0.14 | 0.15 | 0.15 | 0.15 | 0.15 | 0.16 | 0.16 | |||||||
| Adobe Inc. | 0.38 | 0.37 | 0.36 | 0.36 | 0.36 | 0.33 | 0.30 | 0.29 | 0.29 | 0.21 | 0.20 | 0.21 | 0.22 | 0.23 | 0.25 | 0.24 | 0.25 | 0.25 | 0.24 | 0.25 | 0.25 | 0.26 | |||||||
| CrowdStrike Holdings Inc. | 0.18 | 0.19 | 0.19 | 0.21 | 0.22 | 0.24 | 0.26 | 0.28 | 0.30 | 0.33 | 0.35 | 0.37 | 0.39 | 0.41 | 0.43 | 0.45 | 0.46 | 0.48 | — | — | — | — | |||||||
| Datadog Inc. | — | 0.24 | 0.26 | 0.27 | 0.28 | 0.39 | 0.40 | 0.27 | 0.29 | 0.30 | 0.31 | 0.33 | 0.35 | 0.36 | 0.37 | 0.39 | 0.40 | 0.42 | — | — | — | — | |||||||
| International Business Machines Corp. | — | 0.68 | 0.66 | 0.70 | 0.71 | 0.71 | 0.68 | 0.71 | 0.71 | 0.73 | 0.73 | 0.72 | 0.73 | 0.74 | 0.71 | 0.73 | 0.73 | 0.75 | — | — | — | — | |||||||
| Intuit Inc. | 0.26 | 0.26 | 0.25 | 0.26 | 0.28 | 0.27 | 0.26 | 0.25 | 0.28 | 0.27 | 0.28 | 0.29 | 0.32 | 0.32 | 0.31 | 0.30 | 0.31 | 0.20 | 0.20 | 0.19 | 0.24 | 0.33 | |||||||
| Microsoft Corp. | 0.13 | 0.14 | 0.15 | 0.16 | 0.17 | 0.18 | 0.20 | 0.24 | 0.27 | 0.28 | 0.23 | 0.24 | 0.25 | 0.26 | 0.27 | 0.27 | 0.29 | 0.29 | 0.32 | 0.33 | 0.35 | 0.37 | |||||||
| Oracle Corp. | 0.81 | 0.81 | 0.84 | 0.85 | 0.87 | 0.89 | 0.91 | 0.94 | 0.96 | 0.97 | 0.99 | 1.03 | 1.05 | 1.07 | 1.09 | 1.12 | 1.15 | 1.02 | — | — | — | — | |||||||
| Palantir Technologies Inc. | — | 0.02 | 0.02 | 0.03 | 0.03 | 0.04 | 0.04 | 0.04 | 0.05 | 0.04 | 0.05 | 0.05 | 0.06 | 0.07 | 0.07 | 0.08 | 0.08 | 0.09 | — | — | — | — | |||||||
| Palo Alto Networks Inc. | 0.04 | 0.04 | 0.04 | 0.09 | 0.12 | 0.15 | 0.21 | 0.26 | 0.33 | 0.51 | 0.56 | 0.76 | 0.84 | 0.89 | 0.95 | 0.92 | 0.97 | 0.88 | 0.85 | 0.78 | 0.77 | 0.82 | |||||||
| Salesforce Inc. | 0.15 | 0.16 | 0.16 | 0.16 | 0.17 | 0.17 | 0.17 | 0.18 | 0.18 | 0.19 | 0.19 | 0.19 | 0.19 | 0.19 | 0.19 | 0.20 | 0.23 | 0.13 | — | — | — | — | |||||||
| ServiceNow Inc. | — | 0.17 | 0.16 | 0.18 | 0.18 | 0.19 | 0.19 | 0.19 | 0.21 | 0.22 | 0.23 | 0.24 | 0.24 | 0.29 | 0.31 | 0.32 | 0.34 | 0.36 | — | — | — | — | |||||||
| Workday Inc. | 0.29 | 0.28 | 0.27 | 0.28 | 0.29 | 0.29 | 0.29 | 0.33 | 0.34 | 0.35 | 0.37 | 0.38 | 0.46 | 0.48 | 0.32 | 0.34 | 0.36 | 0.39 | — | — | — | — | |||||||
Based on: 10-Q (reporting date: 2026-04-30), 10-Q (reporting date: 2026-01-31), 10-K (reporting date: 2025-10-31), 10-Q (reporting date: 2025-07-31), 10-Q (reporting date: 2025-04-30), 10-Q (reporting date: 2025-01-31), 10-K (reporting date: 2024-10-31), 10-Q (reporting date: 2024-07-31), 10-Q (reporting date: 2024-04-30), 10-Q (reporting date: 2024-01-31), 10-K (reporting date: 2023-10-31), 10-Q (reporting date: 2023-07-31), 10-Q (reporting date: 2023-04-30), 10-Q (reporting date: 2023-01-31), 10-K (reporting date: 2022-10-31), 10-Q (reporting date: 2022-07-31), 10-Q (reporting date: 2022-04-30), 10-Q (reporting date: 2022-01-31), 10-K (reporting date: 2021-10-31), 10-Q (reporting date: 2021-07-31), 10-Q (reporting date: 2021-04-30), 10-Q (reporting date: 2021-01-31).
1 Q2 2026 Calculation
Debt to capital (including operating lease liability) = Total debt (including operating lease liability) ÷ Total capital (including operating lease liability)
= 10,841,960 ÷ 41,320,091 = 0.26
2 Click competitor name to see calculations.
The solvency profile exhibits two distinct phases: a prolonged period of stability characterized by conservative leverage, followed by a significant structural shift in the capital base starting in early 2025.
- Debt to Capital Ratio Trends
- Between January 31, 2021, and January 31, 2025, the debt to capital ratio remained remarkably stable, fluctuating within a narrow range of 0.07 to 0.12. This indicates a highly solvent position with a minimal reliance on borrowed funds. A sharp inflection occurred on April 30, 2025, when the ratio spiked to 0.52, the highest point in the analyzed period. Subsequently, a downward trend is observed, with the ratio moderating to 0.26 by April 30, 2026.
- Debt and Capital Volume Analysis
- Total debt, including operating lease liabilities, remained relatively stagnant under 700 million USD from January 2021 through January 2025. A substantial escalation occurred in the second quarter of 2025, with total debt surging to 10.7 billion USD in April and peaking at 15.1 billion USD in July 2025. This was mirrored by a massive expansion in total capital, which grew from 9.9 billion USD in January 2025 to a peak of 42.8 billion USD in July 2025.
- Structural Solvency Insights
- The simultaneous and dramatic increase in both debt and total capital starting in April 2025 suggests a major corporate event, such as a large-scale acquisition or significant financing activity. Although the leverage increased significantly compared to the 2021-2024 baseline, the trend from the peak in July 2025 through April 2026 indicates a period of deleveraging or capital reorganization, as the debt to capital ratio declined steadily from 0.35 to 0.26 during the final four quarters of the data set.
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Debt to Assets
Synopsys Inc., debt to assets calculation (quarterly data)
| Apr 30, 2026 | Jan 31, 2026 | Oct 31, 2025 | Jul 31, 2025 | Apr 30, 2025 | Jan 31, 2025 | Oct 31, 2024 | Jul 31, 2024 | Apr 30, 2024 | Jan 31, 2024 | Oct 31, 2023 | Jul 31, 2023 | Apr 30, 2023 | Jan 31, 2023 | Oct 31, 2022 | Jul 31, 2022 | Apr 30, 2022 | Jan 31, 2022 | Oct 31, 2021 | Jul 31, 2021 | Apr 30, 2021 | Jan 31, 2021 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | |||||||||||||||||||||||||||||
| Short-term debt | 22,117) | 22,117) | 22,117) | 22,117) | 22,962) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | 74,992) | 82,468) | 89,945) | 97,421) | |||||||
| Long-term debt | 10,013,845) | 10,022,093) | 13,462,398) | 14,318,016) | 10,027,681) | 14,220) | 15,601) | 15,599) | 16,960) | 16,951) | 18,078) | 18,165) | 20,201) | 20,569) | 20,824) | 21,960) | 23,775) | 24,370) | 25,094) | 24,754) | 25,620) | 25,658) | |||||||
| Total debt | 10,035,962) | 10,044,210) | 13,484,515) | 14,340,133) | 10,050,643) | 14,220) | 15,601) | 15,599) | 16,960) | 16,951) | 18,078) | 18,165) | 20,201) | 20,569) | 20,824) | 21,960) | 23,775) | 24,370) | 100,086) | 107,222) | 115,565) | 123,079) | |||||||
| Total assets | 46,889,027) | 47,237,928) | 48,224,461) | 48,230,256) | 23,756,517) | 13,041,089) | 13,073,561) | 11,648,684) | 11,011,837) | 10,558,259) | 10,333,131) | 9,923,231) | 9,790,732) | 9,565,624) | 9,418,087) | 9,329,547) | 9,210,381) | 8,901,346) | 8,752,260) | 8,485,906) | 8,339,565) | 8,012,838) | |||||||
| Solvency Ratio | |||||||||||||||||||||||||||||
| Debt to assets1 | 0.21 | 0.21 | 0.28 | 0.30 | 0.42 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.01 | 0.01 | 0.01 | 0.02 | |||||||
| Benchmarks | |||||||||||||||||||||||||||||
| Debt to Assets, Competitors2 | |||||||||||||||||||||||||||||
| Accenture PLC | 0.08 | 0.08 | 0.08 | 0.08 | 0.09 | 0.09 | 0.02 | 0.03 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | |||||||
| Adobe Inc. | 0.22 | 0.21 | 0.21 | 0.22 | 0.22 | 0.21 | 0.19 | 0.19 | 0.19 | 0.13 | 0.12 | 0.12 | 0.13 | 0.14 | 0.15 | 0.15 | 0.16 | 0.16 | 0.15 | 0.16 | 0.16 | 0.16 | |||||||
| AppLovin Corp. | — | 0.46 | 0.48 | 0.55 | 0.59 | 0.65 | 0.60 | 0.64 | 0.67 | 0.67 | 0.58 | 0.62 | 0.58 | 0.54 | 0.55 | 0.55 | 0.54 | 0.52 | — | — | — | — | |||||||
| Cadence Design Systems Inc. | — | 0.24 | 0.24 | 0.26 | 0.26 | 0.27 | 0.28 | 0.31 | 0.19 | 0.11 | 0.11 | 0.12 | 0.13 | 0.13 | 0.15 | 0.16 | 0.08 | 0.08 | — | — | — | — | |||||||
| CrowdStrike Holdings Inc. | 0.08 | 0.09 | 0.09 | 0.10 | 0.10 | 0.11 | 0.11 | 0.13 | 0.13 | 0.14 | 0.15 | 0.17 | 0.18 | 0.19 | 0.20 | 0.22 | 0.24 | 0.26 | — | — | — | — | |||||||
| Datadog Inc. | — | 0.14 | 0.15 | 0.16 | 0.17 | 0.27 | 0.28 | 0.16 | 0.17 | 0.18 | 0.19 | 0.21 | 0.22 | 0.24 | 0.25 | 0.26 | 0.28 | 0.29 | — | — | — | — | |||||||
| International Business Machines Corp. | — | 0.42 | 0.40 | 0.43 | 0.43 | 0.43 | 0.40 | 0.42 | 0.42 | 0.43 | 0.42 | 0.43 | 0.43 | 0.44 | 0.40 | 0.40 | 0.39 | 0.41 | — | — | — | — | |||||||
| Intuit Inc. | 0.18 | 0.18 | 0.16 | 0.18 | 0.20 | 0.18 | 0.19 | 0.19 | 0.20 | 0.21 | 0.22 | 0.23 | 0.26 | 0.26 | 0.25 | 0.24 | 0.26 | 0.14 | 0.13 | 0.13 | 0.16 | 0.24 | |||||||
| Microsoft Corp. | 0.06 | 0.07 | 0.07 | 0.08 | 0.08 | 0.09 | 0.10 | 0.14 | 0.16 | 0.16 | 0.11 | 0.13 | 0.13 | 0.14 | 0.14 | 0.14 | 0.16 | 0.16 | 0.17 | 0.19 | 0.20 | 0.21 | |||||||
| Oracle Corp. | 0.53 | 0.51 | 0.55 | 0.60 | 0.60 | 0.59 | 0.62 | 0.64 | 0.66 | 0.65 | 0.67 | 0.70 | 0.71 | 0.70 | 0.69 | 0.72 | 0.73 | 0.67 | — | — | — | — | |||||||
| Palantir Technologies Inc. | — | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | — | — | — | — | |||||||
| Palo Alto Networks Inc. | 0.00 | 0.00 | 0.00 | 0.02 | 0.03 | 0.03 | 0.05 | 0.06 | 0.10 | 0.13 | 0.14 | 0.26 | 0.28 | 0.29 | 0.30 | 0.33 | 0.35 | 0.35 | 0.31 | 0.33 | 0.33 | 0.36 | |||||||
| Salesforce Inc. | 0.09 | 0.09 | 0.08 | 0.09 | 0.09 | 0.10 | 0.09 | 0.10 | 0.10 | 0.10 | 0.11 | 0.12 | 0.11 | 0.11 | 0.11 | 0.12 | 0.15 | 0.04 | — | — | — | — | |||||||
| ServiceNow Inc. | — | 0.06 | 0.06 | 0.07 | 0.07 | 0.07 | 0.07 | 0.08 | 0.08 | 0.08 | 0.09 | 0.10 | 0.10 | 0.11 | 0.11 | 0.13 | 0.13 | 0.14 | — | — | — | — | |||||||
| Workday Inc. | 0.17 | 0.17 | 0.17 | 0.18 | 0.18 | 0.19 | 0.18 | 0.21 | 0.22 | 0.22 | 0.22 | 0.24 | 0.31 | 0.32 | 0.18 | 0.20 | 0.20 | 0.22 | — | — | — | — | |||||||
Based on: 10-Q (reporting date: 2026-04-30), 10-Q (reporting date: 2026-01-31), 10-K (reporting date: 2025-10-31), 10-Q (reporting date: 2025-07-31), 10-Q (reporting date: 2025-04-30), 10-Q (reporting date: 2025-01-31), 10-K (reporting date: 2024-10-31), 10-Q (reporting date: 2024-07-31), 10-Q (reporting date: 2024-04-30), 10-Q (reporting date: 2024-01-31), 10-K (reporting date: 2023-10-31), 10-Q (reporting date: 2023-07-31), 10-Q (reporting date: 2023-04-30), 10-Q (reporting date: 2023-01-31), 10-K (reporting date: 2022-10-31), 10-Q (reporting date: 2022-07-31), 10-Q (reporting date: 2022-04-30), 10-Q (reporting date: 2022-01-31), 10-K (reporting date: 2021-10-31), 10-Q (reporting date: 2021-07-31), 10-Q (reporting date: 2021-04-30), 10-Q (reporting date: 2021-01-31).
1 Q2 2026 Calculation
Debt to assets = Total debt ÷ Total assets
= 10,035,962 ÷ 46,889,027 = 0.21
2 Click competitor name to see calculations.
The company maintained an exceptionally conservative solvency profile from January 2021 through January 2025, characterized by a systematic reduction in total debt and a steady increase in total assets. During this initial period, total debt declined from $123 million to approximately $14 million, while total assets expanded from $8 billion to over $13 billion. This resulted in a debt-to-assets ratio that trended toward zero, indicating a negligible reliance on external borrowing to fund operations and growth.
- Capital Structure Shift (2025)
- A significant shift in the capital structure occurred in April 2025, marked by a substantial increase in both total debt and total assets. Total debt rose sharply from $14.2 million in January 2025 to $10 billion in April 2025, peaking at $14.3 billion in July 2025. Simultaneously, total assets surged from $13 billion to over $48 billion by July 2025. This suggests a major financing event or a large-scale acquisition.
- Debt-to-Assets Ratio Volatility
- The debt-to-assets ratio experienced a sharp spike, rising from 0.00 in early 2025 to a peak of 0.42 in April 2025. Following this peak, the ratio exhibited a consistent downward trend, decreasing to 0.30 in July 2025, 0.28 in October 2025, and stabilizing at 0.21 through April 2026. This decline indicates a period of deleveraging or continued asset appreciation relative to the new debt load.
- Long-term Solvency Trend
- Despite the significant increase in leverage starting in 2025, the company transitioned from a near-zero debt position to a moderate leverage position. The stabilization of the debt-to-assets ratio at 0.21 by April 2026 suggests that the company has integrated its expanded asset base and is managing its solvency levels within a new, higher, but stable range.
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Debt to Assets (including Operating Lease Liability)
Synopsys Inc., debt to assets (including operating lease liability) calculation (quarterly data)
| Apr 30, 2026 | Jan 31, 2026 | Oct 31, 2025 | Jul 31, 2025 | Apr 30, 2025 | Jan 31, 2025 | Oct 31, 2024 | Jul 31, 2024 | Apr 30, 2024 | Jan 31, 2024 | Oct 31, 2023 | Jul 31, 2023 | Apr 30, 2023 | Jan 31, 2023 | Oct 31, 2022 | Jul 31, 2022 | Apr 30, 2022 | Jan 31, 2022 | Oct 31, 2021 | Jul 31, 2021 | Apr 30, 2021 | Jan 31, 2021 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | |||||||||||||||||||||||||||||
| Short-term debt | 22,117) | 22,117) | 22,117) | 22,117) | 22,962) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | 74,992) | 82,468) | 89,945) | 97,421) | |||||||
| Long-term debt | 10,013,845) | 10,022,093) | 13,462,398) | 14,318,016) | 10,027,681) | 14,220) | 15,601) | 15,599) | 16,960) | 16,951) | 18,078) | 18,165) | 20,201) | 20,569) | 20,824) | 21,960) | 23,775) | 24,370) | 25,094) | 24,754) | 25,620) | 25,658) | |||||||
| Total debt | 10,035,962) | 10,044,210) | 13,484,515) | 14,340,133) | 10,050,643) | 14,220) | 15,601) | 15,599) | 16,960) | 16,951) | 18,078) | 18,165) | 20,201) | 20,569) | 20,824) | 21,960) | 23,775) | 24,370) | 100,086) | 107,222) | 115,565) | 123,079) | |||||||
| Current operating lease liabilities | 135,523) | 133,098) | 128,205) | 127,452) | 104,170) | 99,310) | 94,791) | 89,869) | 84,550) | 89,194) | 85,690) | 80,192) | 78,056) | 66,326) | 54,274) | 54,170) | 55,170) | 78,748) | 79,678) | 79,289) | 77,610) | 72,769) | |||||||
| Long-term operating lease liabilities | 670,475) | 691,249) | 680,698) | 672,729) | 587,438) | 551,507) | 574,065) | 568,407) | 543,207) | 563,815) | 584,035) | 590,827) | 591,667) | 603,538) | 581,273) | 592,930) | 601,317) | 477,487) | 487,003) | 487,574) | 498,953) | 459,880) | |||||||
| Total debt (including operating lease liability) | 10,841,960) | 10,868,557) | 14,293,418) | 15,140,314) | 10,742,251) | 665,037) | 684,457) | 673,875) | 644,717) | 669,960) | 687,803) | 689,184) | 689,924) | 690,433) | 656,371) | 669,060) | 680,262) | 580,605) | 666,767) | 674,085) | 692,128) | 655,728) | |||||||
| Total assets | 46,889,027) | 47,237,928) | 48,224,461) | 48,230,256) | 23,756,517) | 13,041,089) | 13,073,561) | 11,648,684) | 11,011,837) | 10,558,259) | 10,333,131) | 9,923,231) | 9,790,732) | 9,565,624) | 9,418,087) | 9,329,547) | 9,210,381) | 8,901,346) | 8,752,260) | 8,485,906) | 8,339,565) | 8,012,838) | |||||||
| Solvency Ratio | |||||||||||||||||||||||||||||
| Debt to assets (including operating lease liability)1 | 0.23 | 0.23 | 0.30 | 0.31 | 0.45 | 0.05 | 0.05 | 0.06 | 0.06 | 0.06 | 0.07 | 0.07 | 0.07 | 0.07 | 0.07 | 0.07 | 0.07 | 0.07 | 0.08 | 0.08 | 0.08 | 0.08 | |||||||
| Benchmarks | |||||||||||||||||||||||||||||
| Debt to Assets (including Operating Lease Liability), Competitors2 | |||||||||||||||||||||||||||||
| Accenture PLC | 0.12 | 0.13 | 0.13 | 0.13 | 0.13 | 0.14 | 0.07 | 0.08 | 0.06 | 0.06 | 0.06 | 0.06 | 0.07 | 0.07 | 0.07 | 0.08 | 0.08 | 0.08 | 0.08 | 0.08 | 0.09 | 0.09 | |||||||
| Adobe Inc. | 0.24 | 0.22 | 0.23 | 0.23 | 0.23 | 0.22 | 0.20 | 0.20 | 0.20 | 0.14 | 0.14 | 0.14 | 0.15 | 0.15 | 0.17 | 0.17 | 0.18 | 0.18 | 0.17 | 0.18 | 0.18 | 0.19 | |||||||
| CrowdStrike Holdings Inc. | 0.09 | 0.09 | 0.09 | 0.10 | 0.11 | 0.12 | 0.12 | 0.14 | 0.14 | 0.15 | 0.16 | 0.17 | 0.19 | 0.20 | 0.21 | 0.24 | 0.25 | 0.27 | — | — | — | — | |||||||
| Datadog Inc. | — | 0.18 | 0.19 | 0.21 | 0.22 | 0.31 | 0.32 | 0.21 | 0.22 | 0.23 | 0.23 | 0.25 | 0.27 | 0.27 | 0.28 | 0.30 | 0.31 | 0.32 | — | — | — | — | |||||||
| International Business Machines Corp. | — | 0.45 | 0.43 | 0.45 | 0.46 | 0.46 | 0.43 | 0.45 | 0.45 | 0.46 | 0.44 | 0.45 | 0.46 | 0.46 | 0.42 | 0.43 | 0.42 | 0.43 | — | — | — | — | |||||||
| Intuit Inc. | 0.20 | 0.20 | 0.18 | 0.19 | 0.22 | 0.20 | 0.20 | 0.20 | 0.22 | 0.22 | 0.24 | 0.25 | 0.28 | 0.28 | 0.27 | 0.25 | 0.27 | 0.16 | 0.16 | 0.15 | 0.19 | 0.27 | |||||||
| Microsoft Corp. | 0.09 | 0.10 | 0.10 | 0.11 | 0.12 | 0.12 | 0.13 | 0.17 | 0.19 | 0.19 | 0.15 | 0.16 | 0.16 | 0.17 | 0.17 | 0.18 | 0.19 | 0.19 | 0.20 | 0.22 | 0.23 | 0.24 | |||||||
| Oracle Corp. | 0.61 | 0.58 | 0.62 | 0.60 | 0.60 | 0.59 | 0.62 | 0.64 | 0.66 | 0.65 | 0.67 | 0.70 | 0.71 | 0.70 | 0.69 | 0.72 | 0.73 | 0.67 | — | — | — | — | |||||||
| Palantir Technologies Inc. | — | 0.02 | 0.02 | 0.02 | 0.03 | 0.03 | 0.03 | 0.04 | 0.04 | 0.03 | 0.04 | 0.04 | 0.05 | 0.06 | 0.06 | 0.06 | 0.07 | 0.07 | — | — | — | — | |||||||
| Palo Alto Networks Inc. | 0.01 | 0.01 | 0.01 | 0.03 | 0.04 | 0.05 | 0.07 | 0.09 | 0.12 | 0.15 | 0.16 | 0.28 | 0.30 | 0.32 | 0.32 | 0.36 | 0.38 | 0.38 | 0.35 | 0.37 | 0.37 | 0.39 | |||||||
| Salesforce Inc. | 0.12 | 0.12 | 0.11 | 0.12 | 0.12 | 0.13 | 0.13 | 0.14 | 0.14 | 0.14 | 0.14 | 0.15 | 0.15 | 0.15 | 0.15 | 0.16 | 0.19 | 0.09 | — | — | — | — | |||||||
| ServiceNow Inc. | — | 0.10 | 0.09 | 0.11 | 0.11 | 0.11 | 0.11 | 0.12 | 0.12 | 0.13 | 0.13 | 0.15 | 0.15 | 0.16 | 0.17 | 0.19 | 0.19 | 0.20 | — | — | — | — | |||||||
| Workday Inc. | 0.21 | 0.20 | 0.19 | 0.20 | 0.21 | 0.21 | 0.20 | 0.24 | 0.24 | 0.25 | 0.24 | 0.26 | 0.33 | 0.34 | 0.20 | 0.23 | 0.24 | 0.25 | — | — | — | — | |||||||
Based on: 10-Q (reporting date: 2026-04-30), 10-Q (reporting date: 2026-01-31), 10-K (reporting date: 2025-10-31), 10-Q (reporting date: 2025-07-31), 10-Q (reporting date: 2025-04-30), 10-Q (reporting date: 2025-01-31), 10-K (reporting date: 2024-10-31), 10-Q (reporting date: 2024-07-31), 10-Q (reporting date: 2024-04-30), 10-Q (reporting date: 2024-01-31), 10-K (reporting date: 2023-10-31), 10-Q (reporting date: 2023-07-31), 10-Q (reporting date: 2023-04-30), 10-Q (reporting date: 2023-01-31), 10-K (reporting date: 2022-10-31), 10-Q (reporting date: 2022-07-31), 10-Q (reporting date: 2022-04-30), 10-Q (reporting date: 2022-01-31), 10-K (reporting date: 2021-10-31), 10-Q (reporting date: 2021-07-31), 10-Q (reporting date: 2021-04-30), 10-Q (reporting date: 2021-01-31).
1 Q2 2026 Calculation
Debt to assets (including operating lease liability) = Total debt (including operating lease liability) ÷ Total assets
= 10,841,960 ÷ 46,889,027 = 0.23
2 Click competitor name to see calculations.
The financial trajectory of the company exhibits two distinct phases of capital structure: a period of high stability and low leverage followed by a massive expansion of both assets and liabilities. Between January 2021 and January 2025, the company maintained a conservative solvency profile, which shifted abruptly in the second quarter of 2025.
- Period of Stability and Deleveraging (January 2021 – January 2025)
- During this interval, total debt, including operating lease liabilities, remained remarkably stable, fluctuating within a narrow range between 580 million and 692 million US dollars. Simultaneously, total assets grew steadily from 8.01 billion to 13.04 billion US dollars. This organic growth in the asset base, coupled with static debt levels, led to a gradual decline in the debt-to-assets ratio, which improved from 0.08 in early 2021 to a minimum of 0.05 by January 2025.
- Capital Expansion and Strategic Shift (April 2025 – April 2026)
- A significant structural change occurred in April 2025, characterized by a sharp increase in both debt and assets. Total debt rose from 665 million US dollars in January 2025 to 10.74 billion US dollars in April 2025, eventually peaking at 15.14 billion US dollars in July 2025. Total assets saw an even more dramatic increase, jumping to 23.76 billion US dollars in April 2025 and peaking at 48.23 billion US dollars in July 2025. This pattern is indicative of a major capital event, such as a large-scale acquisition or strategic investment.
- Analysis of Solvency Ratio Trends
- The debt-to-assets ratio experienced extreme volatility during the expansion phase, spiking to 0.45 in April 2025. This represents a substantial increase in financial leverage compared to the previous four years. However, the ratio began to decline as assets grew faster than debt in July 2025 and as total debt was subsequently reduced. By April 2026, the ratio stabilized at 0.23. While this level is significantly higher than the pre-2025 baseline of 0.05 to 0.08, the downward movement from the 0.45 peak suggests an active effort to optimize the balance sheet and reduce leverage following the asset expansion.
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Financial Leverage
Synopsys Inc., financial leverage calculation (quarterly data)
| Apr 30, 2026 | Jan 31, 2026 | Oct 31, 2025 | Jul 31, 2025 | Apr 30, 2025 | Jan 31, 2025 | Oct 31, 2024 | Jul 31, 2024 | Apr 30, 2024 | Jan 31, 2024 | Oct 31, 2023 | Jul 31, 2023 | Apr 30, 2023 | Jan 31, 2023 | Oct 31, 2022 | Jul 31, 2022 | Apr 30, 2022 | Jan 31, 2022 | Oct 31, 2021 | Jul 31, 2021 | Apr 30, 2021 | Jan 31, 2021 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | |||||||||||||||||||||||||||||
| Total assets | 46,889,027) | 47,237,928) | 48,224,461) | 48,230,256) | 23,756,517) | 13,041,089) | 13,073,561) | 11,648,684) | 11,011,837) | 10,558,259) | 10,333,131) | 9,923,231) | 9,790,732) | 9,565,624) | 9,418,087) | 9,329,547) | 9,210,381) | 8,901,346) | 8,752,260) | 8,485,906) | 8,339,565) | 8,012,838) | |||||||
| Total Synopsys stockholders’ equity | 30,478,131) | 30,548,827) | 28,327,602) | 27,614,531) | 9,915,718) | 9,304,792) | 8,990,702) | 7,709,396) | 7,153,160) | 6,670,984) | 6,147,308) | 5,958,555) | 5,831,859) | 5,636,754) | 5,515,725) | 5,604,026) | 5,564,311) | 5,386,773) | 5,295,137) | 5,151,020) | 5,088,135) | 4,882,252) | |||||||
| Solvency Ratio | |||||||||||||||||||||||||||||
| Financial leverage1 | 1.54 | 1.55 | 1.70 | 1.75 | 2.40 | 1.40 | 1.45 | 1.51 | 1.54 | 1.58 | 1.68 | 1.67 | 1.68 | 1.70 | 1.71 | 1.66 | 1.66 | 1.65 | 1.65 | 1.65 | 1.64 | 1.64 | |||||||
| Benchmarks | |||||||||||||||||||||||||||||
| Financial Leverage, Competitors2 | |||||||||||||||||||||||||||||
| Accenture PLC | 2.15 | 2.10 | 2.10 | 2.07 | 2.05 | 2.05 | 1.98 | 1.95 | 1.89 | 1.93 | 1.99 | 1.98 | 2.01 | 2.05 | 2.14 | 2.16 | 2.16 | 2.15 | 2.21 | 2.18 | 2.18 | 2.14 | |||||||
| Adobe Inc. | 2.60 | 2.60 | 2.54 | 2.44 | 2.46 | 2.29 | 2.14 | 2.05 | 2.02 | 1.86 | 1.80 | 1.84 | 1.88 | 1.88 | 1.93 | 1.86 | 1.88 | 1.89 | 1.84 | 1.81 | 1.85 | 1.84 | |||||||
| AppLovin Corp. | — | 3.26 | 3.40 | 4.30 | 5.11 | 9.92 | 5.39 | 5.80 | 6.47 | 6.92 | 4.27 | 4.57 | 3.61 | 3.12 | 3.07 | 3.08 | 3.11 | 3.06 | — | — | — | — | |||||||
| Cadence Design Systems Inc. | — | 1.84 | 1.85 | 1.85 | 1.90 | 1.89 | 1.92 | 2.01 | 1.70 | 1.60 | 1.67 | 1.74 | 1.77 | 1.76 | 1.87 | 1.83 | 1.66 | 1.59 | — | — | — | — | |||||||
| CrowdStrike Holdings Inc. | 2.47 | 2.53 | 2.65 | 2.55 | 2.52 | 2.70 | 2.88 | 2.87 | 3.00 | 3.20 | 3.43 | 3.40 | 3.39 | 3.48 | 3.53 | 3.48 | 3.47 | 3.39 | — | — | — | — | |||||||
| Datadog Inc. | — | 1.74 | 1.78 | 1.76 | 1.82 | 2.06 | 2.13 | 1.76 | 1.83 | 1.88 | 1.94 | 1.96 | 2.01 | 2.08 | 2.13 | 2.17 | 2.18 | 2.26 | — | — | — | — | |||||||
| International Business Machines Corp. | — | 4.74 | 4.65 | 5.24 | 5.40 | 5.42 | 5.02 | 5.49 | 5.57 | 5.90 | 6.00 | 5.60 | 5.96 | 6.19 | 5.80 | 6.27 | 6.57 | 7.00 | — | — | — | — | |||||||
| Intuit Inc. | 1.80 | 1.72 | 1.88 | 1.82 | 1.77 | 1.83 | 1.74 | 1.68 | 1.76 | 1.68 | 1.61 | 1.64 | 1.72 | 1.69 | 1.69 | 1.68 | 1.69 | 1.53 | 1.57 | 1.58 | 1.65 | 1.85 | |||||||
| Microsoft Corp. | 1.70 | 1.75 | 1.80 | 1.75 | 1.76 | 1.82 | 1.91 | 1.91 | 1.97 | 2.02 | 2.00 | 1.95 | 1.99 | 2.07 | 2.19 | 2.12 | 2.13 | 2.21 | 2.35 | 2.30 | 2.34 | 2.44 | |||||||
| Oracle Corp. | 6.84 | 7.47 | 8.23 | 9.65 | 10.80 | 13.33 | 16.20 | 24.38 | 34.74 | 57.66 | 125.24 | — | — | — | — | — | — | — | — | — | — | — | |||||||
| Palantir Technologies Inc. | — | 1.21 | 1.20 | 1.23 | 1.24 | 1.24 | 1.27 | 1.28 | 1.28 | 1.27 | 1.30 | 1.31 | 1.35 | 1.35 | 1.35 | 1.39 | 1.40 | 1.40 | — | — | — | — | |||||||
| Palo Alto Networks Inc. | 2.66 | 2.72 | 3.01 | 3.04 | 3.29 | 3.45 | 3.87 | 4.01 | 4.20 | 6.82 | 8.29 | 11.50 | 18.06 | 24.69 | 58.35 | 32.88 | 88.29 | 20.09 | 16.14 | 9.59 | 9.15 | 11.68 | |||||||
| Salesforce Inc. | 1.59 | 1.63 | 1.68 | 1.56 | 1.60 | 1.61 | 1.67 | 1.57 | 1.59 | 1.63 | 1.69 | 1.55 | 1.57 | 1.58 | 1.64 | 1.53 | 1.60 | 1.52 | — | — | — | — | |||||||
| ServiceNow Inc. | — | 2.08 | 2.01 | 1.93 | 2.02 | 2.07 | 2.12 | 1.98 | 2.10 | 2.16 | 2.28 | 2.10 | 2.15 | 2.43 | 2.64 | 2.46 | 2.65 | 2.75 | — | — | — | — | |||||||
| Workday Inc. | 1.96 | 1.93 | 1.99 | 1.90 | 1.95 | 1.95 | 2.04 | 2.10 | 2.19 | 2.23 | 2.41 | 2.29 | 2.58 | 2.68 | 2.31 | 2.24 | 2.36 | 2.53 | — | — | — | — | |||||||
Based on: 10-Q (reporting date: 2026-04-30), 10-Q (reporting date: 2026-01-31), 10-K (reporting date: 2025-10-31), 10-Q (reporting date: 2025-07-31), 10-Q (reporting date: 2025-04-30), 10-Q (reporting date: 2025-01-31), 10-K (reporting date: 2024-10-31), 10-Q (reporting date: 2024-07-31), 10-Q (reporting date: 2024-04-30), 10-Q (reporting date: 2024-01-31), 10-K (reporting date: 2023-10-31), 10-Q (reporting date: 2023-07-31), 10-Q (reporting date: 2023-04-30), 10-Q (reporting date: 2023-01-31), 10-K (reporting date: 2022-10-31), 10-Q (reporting date: 2022-07-31), 10-Q (reporting date: 2022-04-30), 10-Q (reporting date: 2022-01-31), 10-K (reporting date: 2021-10-31), 10-Q (reporting date: 2021-07-31), 10-Q (reporting date: 2021-04-30), 10-Q (reporting date: 2021-01-31).
1 Q2 2026 Calculation
Financial leverage = Total assets ÷ Total Synopsys stockholders’ equity
= 46,889,027 ÷ 30,478,131 = 1.54
2 Click competitor name to see calculations.
Between January 2021 and April 2026, the company experienced a significant transformation in its balance sheet structure, characterized by a period of steady organic growth followed by an abrupt and massive expansion of total assets and equity starting in early 2025.
- Asset and Equity Expansion
- Total assets grew consistently from approximately 8.01 billion USD in January 2021 to 13.07 billion USD by October 2024. A substantial increase occurred between January 2025 and April 2025, where assets surged from 13.04 billion USD to 48.23 billion USD, maintaining a level around 47-48 billion USD through April 2026. Stockholders' equity followed a similar trajectory, rising steadily from 4.88 billion USD to 9.30 billion USD through October 2024, before leaping to 27.61 billion USD in April 2025 and eventually reaching 30.48 billion USD by April 2026.
- Financial Leverage Trends
- The financial leverage ratio remained remarkably stable, fluctuating between 1.64 and 1.71 from January 2021 through October 2022. A gradual deleveraging trend was observed from January 2023 to January 2025, with the ratio declining to 1.40. This trend was interrupted by a sharp peak of 2.40 in January 2025, coinciding with the initial surge in assets. Following this spike, the ratio rapidly normalized, falling to 1.75 in April 2025 and further decreasing to 1.54 by April 2026.
- Solvency and Risk Interpretation
- The temporary spike in financial leverage to 2.40 indicates a short-term increase in financial risk, likely associated with a major corporate action such as a large-scale acquisition or significant capital restructuring. The subsequent rapid decline in the leverage ratio to 1.54, despite the assets remaining at a significantly elevated level, suggests a substantial increase in equity funding or a rapid reduction of debt. This movement indicates a return to a conservative solvency profile, with leverage levels in 2026 appearing even more favorable than those observed during the 2021-2022 period.
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Interest Coverage
Synopsys Inc., interest coverage calculation (quarterly data)
| Apr 30, 2026 | Jan 31, 2026 | Oct 31, 2025 | Jul 31, 2025 | Apr 30, 2025 | Jan 31, 2025 | Oct 31, 2024 | Jul 31, 2024 | Apr 30, 2024 | Jan 31, 2024 | Oct 31, 2023 | Jul 31, 2023 | Apr 30, 2023 | Jan 31, 2023 | Oct 31, 2022 | Jul 31, 2022 | Apr 30, 2022 | Jan 31, 2022 | Oct 31, 2021 | Jul 31, 2021 | Apr 30, 2021 | Jan 31, 2021 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | |||||||||||||||||||||||||||||
| Net income attributed to Synopsys | 17,105) | 64,958) | 448,696) | 242,509) | 345,332) | 295,683) | 1,114,106) | 408,055) | 292,107) | 449,112) | 349,190) | 336,252) | 272,910) | 271,536) | 153,500) | 222,626) | 294,781) | 313,687) | 201,447) | 198,646) | 195,078) | 162,345) | |||||||
| Add: Net income attributable to noncontrolling interest | (237) | (242) | (243) | (232) | (222) | 1,728) | (18,486) | (3,161) | (3,018) | (2,905) | (2,695) | (3,197) | (2,962) | (2,909) | (1,943) | (2,980) | (889) | (346) | (310) | (254) | (276) | (317) | |||||||
| Less: Income (loss) from discontinued operations, net of income taxes | —) | —) | —) | —) | (3,900) | —) | 834,825) | (17,813) | (7,004) | 11,662) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | |||||||
| Add: Income tax expense | 2,408) | 14,337) | 68,071) | (52,967) | 47,181) | (6,294) | 62,084) | (30,712) | 45,437) | 22,909) | 63,196) | (11,773) | 21,637) | 10,597) | 60,572) | 16,708) | 45,896) | 13,902) | (2,059) | 14,945) | 21,193) | 15,076) | |||||||
| Add: Interest expense | 133,364) | 162,715) | 194,752) | 146,502) | 94,336) | 11,139) | 14,614) | 11,742) | 7,067) | 1,738) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | |||||||
| Earnings before interest and tax (EBIT) | 152,640) | 241,768) | 711,276) | 335,812) | 490,527) | 302,256) | 337,493) | 403,737) | 348,597) | 459,192) | 409,691) | 321,282) | 291,585) | 279,224) | 212,129) | 236,354) | 339,788) | 327,243) | 199,078) | 213,337) | 215,995) | 177,104) | |||||||
| Solvency Ratio | |||||||||||||||||||||||||||||
| Interest coverage1 | 2.26 | 2.97 | 4.12 | 5.50 | 11.64 | 31.24 | 44.06 | 78.90 | 174.76 | 852.56 | — | — | — | — | — | — | — | — | — | — | — | — | |||||||
| Benchmarks | |||||||||||||||||||||||||||||
| Interest Coverage, Competitors2 | |||||||||||||||||||||||||||||
| Accenture PLC | 40.77 | 39.97 | 45.94 | 57.86 | 80.38 | 135.71 | 165.48 | 175.20 | 175.18 | 168.23 | 193.31 | 220.23 | 212.89 | 217.31 | 195.34 | 188.01 | 133.08 | 133.32 | 131.46 | 126.89 | 196.99 | 191.96 | |||||||
| Adobe Inc. | 35.91 | 34.99 | 34.21 | 35.26 | 37.00 | 40.93 | 42.01 | 46.90 | 53.43 | 58.12 | 61.17 | 58.59 | 55.57 | 53.27 | 54.64 | 54.21 | 54.34 | 53.39 | 51.49 | 49.52 | 45.92 | 42.50 | |||||||
| AppLovin Corp. | — | 23.36 | 20.09 | 13.86 | 10.72 | 8.08 | 5.95 | 5.19 | 3.95 | 3.37 | 2.38 | 1.52 | 1.12 | 0.76 | -0.19 | 0.25 | 0.19 | 0.02 | — | — | — | — | |||||||
| Cadence Design Systems Inc. | — | 14.39 | 14.06 | 13.53 | 13.50 | 15.95 | 19.37 | 24.99 | 33.48 | 36.67 | 36.43 | 32.16 | 34.13 | 38.63 | 46.58 | 57.84 | 58.34 | 52.92 | — | — | — | — | |||||||
| CrowdStrike Holdings Inc. | -6.94 | -2.14 | 3.07 | 7.50 | 9.33 | 7.64 | 5.77 | 1.41 | -1.80 | -4.04 | -5.31 | -4.72 | -4.71 | -5.09 | -5.34 | -6.41 | -8.16 | -12.40 | — | — | — | — | |||||||
| Datadog Inc. | — | 14.75 | 12.49 | 12.47 | 15.42 | 22.90 | 29.85 | 37.27 | 33.23 | 24.08 | 10.56 | -1.85 | -5.72 | -4.15 | -1.30 | 0.81 | 1.72 | 1.24 | — | — | — | — | |||||||
| International Business Machines Corp. | — | 6.41 | 6.34 | 6.05 | 4.44 | 4.39 | 4.39 | 4.69 | 6.33 | 6.21 | 6.41 | 6.44 | 2.34 | 2.25 | 1.95 | 1.59 | 6.01 | 5.40 | — | — | — | — | |||||||
| Intuit Inc. | 23.55 | 22.15 | 20.57 | 18.45 | 16.48 | 15.76 | 15.67 | 15.74 | 14.07 | 13.20 | 13.05 | 14.66 | 16.17 | 19.99 | 32.38 | 55.36 | 62.71 | 93.29 | 89.14 | 92.00 | 89.58 | 120.30 | |||||||
| Oracle Corp. | 5.51 | 4.94 | 4.96 | 4.96 | 4.81 | 4.60 | 4.34 | 4.08 | 3.88 | 3.74 | 3.60 | 3.96 | 4.41 | 3.33 | 3.78 | 3.98 | 4.23 | 6.06 | — | — | — | — | |||||||
| Palantir Technologies Inc. | — | — | — | — | — | — | — | 3,786.90 | 499.52 | 149.97 | 69.33 | 34.43 | -5.32 | -49.82 | -87.97 | -176.15 | -201.09 | -194.27 | — | — | — | — | |||||||
| Palo Alto Networks Inc. | 2,071.33 | 911.61 | 532.90 | 427.74 | 269.85 | 163.77 | 120.07 | 72.96 | 46.08 | 35.96 | 21.82 | 10.40 | 4.05 | -1.99 | -6.56 | -4.28 | -3.42 | -2.65 | -1.85 | -1.68 | -1.49 | -1.36 | |||||||
| Salesforce Inc. | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | |||||||
Based on: 10-Q (reporting date: 2026-04-30), 10-Q (reporting date: 2026-01-31), 10-K (reporting date: 2025-10-31), 10-Q (reporting date: 2025-07-31), 10-Q (reporting date: 2025-04-30), 10-Q (reporting date: 2025-01-31), 10-K (reporting date: 2024-10-31), 10-Q (reporting date: 2024-07-31), 10-Q (reporting date: 2024-04-30), 10-Q (reporting date: 2024-01-31), 10-K (reporting date: 2023-10-31), 10-Q (reporting date: 2023-07-31), 10-Q (reporting date: 2023-04-30), 10-Q (reporting date: 2023-01-31), 10-K (reporting date: 2022-10-31), 10-Q (reporting date: 2022-07-31), 10-Q (reporting date: 2022-04-30), 10-Q (reporting date: 2022-01-31), 10-K (reporting date: 2021-10-31), 10-Q (reporting date: 2021-07-31), 10-Q (reporting date: 2021-04-30), 10-Q (reporting date: 2021-01-31).
1 Q2 2026 Calculation
Interest coverage
= (EBITQ2 2026
+ EBITQ1 2026
+ EBITQ4 2025
+ EBITQ3 2025)
÷ (Interest expenseQ2 2026
+ Interest expenseQ1 2026
+ Interest expenseQ4 2025
+ Interest expenseQ3 2025)
= (152,640 + 241,768 + 711,276 + 335,812)
÷ (133,364 + 162,715 + 194,752 + 146,502)
= 2.26
2 Click competitor name to see calculations.
The financial data indicates a significant shift in the company's solvency profile, characterized by a rapid deterioration of the interest coverage ratio starting in early 2024. While the company previously operated with negligible interest obligations, a substantial increase in interest expenses has led to a precipitous decline in the margin of safety available to service debt from operational earnings.
- Earnings Before Interest and Tax (EBIT) Trends
- Operational earnings exhibited an overall upward trajectory for the majority of the period, growing from 177.1 million US$ in January 2021 to a peak of 711.3 million US$ in July 2025. However, the most recent quarters show a sharp contraction, with EBIT falling to 152.6 million US$ by April 2026, suggesting a recent decline in operational profitability.
- Interest Expense Escalation
- Interest expenses were non-existent or immaterial until January 2024. Following this point, expenses surged from 1.7 million US$ in January 2024 to a peak of 194.8 million US$ in October 2025. This aggressive increase represents a fundamental change in the capital structure, indicating a significant accumulation of debt or a substantial increase in the cost of borrowing.
- Interest Coverage Ratio Analysis
- The interest coverage ratio has experienced a severe and continuous decline. In January 2024, the ratio stood at 852.56, indicating an exceptionally high capacity to meet interest obligations. By April 2026, this ratio collapsed to 2.26. This downward trend reveals that EBIT is increasingly consumed by interest payments, significantly reducing the solvency cushion and increasing the financial risk associated with the company's debt obligations.
The convergence of declining operational earnings in the final quarters and the sustained high level of interest expenses has compressed the interest coverage ratio to its lowest observed level. This trajectory suggests a heightened vulnerability to further earnings volatility, as the capacity to service interest from current operations has diminished substantially over the analyzed period.
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