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: 2026-01-31), 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 position of the company exhibited a period of stability followed by a notable shift in the observed period. Initially, from January 31, 2021, through October 31, 2022, debt-related ratios remained relatively consistent, indicating a stable capital structure. However, beginning in January 2023, a clear trend of increasing debt utilization emerges, particularly when considering operating lease liabilities. This trend continues through October 2025, before beginning a decline.
- Debt to Equity
- The debt to equity ratio remained consistently low, generally below 0.03, through October 2022. A significant increase is observed starting in January 2023, peaking at 1.01 in April 2025, before decreasing to 0.33 by October 2025. This suggests a substantial shift towards increased reliance on debt financing during this period.
- Debt to Equity (Including Operating Lease Liability)
- Similar to the standard debt to equity ratio, this metric demonstrates stability up to October 2022, fluctuating between 0.11 and 0.14. A marked increase begins in January 2023, reaching a high of 1.08 in April 2025, and then declining to 0.36 by October 2025. The inclusion of operating lease liabilities amplifies the observed changes in leverage.
- Debt to Capital
- The debt to capital ratio mirrors the trend of the debt to equity ratio, remaining low and stable until January 2023. It then increases substantially, reaching 0.50 in April 2025, before decreasing to 0.25 by October 2025. This indicates a growing proportion of debt in the company’s capital structure.
- Debt to Capital (Including Operating Lease Liability)
- This ratio follows a similar pattern to the debt to capital ratio, with stability through October 2022 and a subsequent increase beginning in January 2023, peaking at 0.52 in April 2025, and declining to 0.26 by October 2025. The inclusion of operating lease liabilities again highlights the increased leverage.
- Debt to Assets
- The debt to assets ratio remained consistently low, below 0.08, until January 2023. A significant increase is observed from January 2023, peaking at 0.45 in April 2025, and then decreasing to 0.23 by October 2025. This indicates a growing proportion of assets financed by debt.
- Debt to Assets (Including Operating Lease Liability)
- This ratio exhibits a similar trend to the standard debt to assets ratio, with stability through October 2022 and a subsequent increase beginning in January 2023, peaking at 0.45 in April 2025, and declining to 0.23 by October 2025. The inclusion of operating lease liabilities again amplifies the observed changes in leverage.
- Financial Leverage
- Financial leverage remained relatively stable around 1.65-1.71 from January 2021 through October 2022. A substantial increase is observed starting in January 2023, peaking at 2.40 in April 2025, before decreasing to 1.55 by October 2025. This confirms the increased use of debt in financing the company’s assets.
- Interest Coverage
- The interest coverage ratio demonstrates a significant decline over the observed period. Starting with very high coverage in January 2024 (852.56), it decreases steadily to 2.97 by October 2025. This decline, while starting from a very strong position, suggests a diminishing ability to cover interest expenses as debt levels increase.
In summary, the company maintained a conservative debt position through late 2022. Beginning in 2023, there was a marked increase in debt utilization, as evidenced by all observed ratios. While the ratios begin to decline in late 2025, the period represents a significant shift in the company’s capital structure and a corresponding decrease in interest coverage.
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Debt Ratios
Coverage Ratios
Debt to Equity
Synopsys Inc., debt to equity calculation (quarterly data)
| 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) | 22,962) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | 74,992) | 82,468) | 89,945) | 97,421) | |||||||
| Long-term debt | 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 | 10,044,210) | 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 | 30,548,827) | 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 | 0.48 | 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 | 0.17 | 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. | — | 0.53 | 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. | — | 1.65 | 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. | — | 0.45 | 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. | 0.22 | 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. | — | 0.26 | 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. | — | 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 | 0.30 | 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. | 0.12 | 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. | 3.78 | 4.53 | 5.75 | 6.45 | 7.81 | 9.98 | 15.65 | 22.97 | 37.53 | 84.33 | — | — | — | — | — | — | — | 16.08 | 7.79 | 8.94 | 7.46 | |||||||
| 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 | — | — | — | — | |||||||
| Palo Alto Networks Inc. | 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 | 0.15 | 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. | — | 0.12 | 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 | 0.35 | 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: 2026-01-31), 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 Q1 2026 Calculation
Debt to equity = Total debt ÷ Total Synopsys stockholders’ equity
= 10,044,210 ÷ 30,548,827 = 0.33
2 Click competitor name to see calculations.
The debt to equity ratio for the analyzed period demonstrates a significant shift in financial leverage. Initially, the ratio remained consistently low, indicating a conservative capital structure. However, a substantial increase is observed in later periods, warranting further investigation.
- Initial Period (Jan 31, 2021 – Oct 31, 2022)
- From January 31, 2021, through October 31, 2022, the debt to equity ratio remained remarkably stable, fluctuating between 0.02 and 0.03. This suggests a consistent reliance on equity financing and a minimal level of debt relative to shareholder equity. Total debt decreased steadily during this period, while total stockholders’ equity increased, contributing to the low and stable ratio.
- Transition Period (Jan 31, 2023 – Oct 31, 2024)
- The ratio remained at 0.00 from January 31, 2023, through October 31, 2024. This indicates a period where the company operated with virtually no debt relative to its equity base. Stockholders’ equity continued to grow during this time, further solidifying the company’s strong equity position.
- Significant Shift (Jan 31, 2025 – Oct 31, 2025)
- A dramatic increase in the debt to equity ratio is evident beginning January 31, 2025. The ratio jumps to 1.01 in April 2025, then decreases to 0.52 in July 2025, and further to 0.48 in October 2025. This signifies a substantial increase in debt financing, potentially due to acquisitions, significant investments, or a change in capital structure strategy. The corresponding increase in total debt, particularly in April 2025, supports this observation. Stockholders’ equity also increased significantly during this period, but not at a rate sufficient to offset the increase in debt.
- Recent Period (Jan 31, 2026)
- The ratio continues to decline to 0.33 as of January 31, 2026, suggesting that while debt levels remain elevated compared to prior periods, the growth in equity is beginning to moderate the impact on the debt to equity ratio. Total debt decreased, while total stockholders’ equity continued to increase.
In summary, the company maintained a very conservative debt to equity ratio for the majority of the analyzed period. The recent increase in the ratio, starting in 2025, represents a notable change in the company’s financial leverage and warrants further scrutiny to understand the underlying reasons and potential implications.
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Debt to Equity (including Operating Lease Liability)
Synopsys Inc., debt to equity (including operating lease liability) calculation (quarterly data)
| 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) | 22,962) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | 74,992) | 82,468) | 89,945) | 97,421) | |||||||
| Long-term debt | 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 | 10,044,210) | 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 | 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 | 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) | 10,868,557) | 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 | 30,548,827) | 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 | 0.50 | 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 | 0.26 | 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. | — | 0.57 | 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. | 0.23 | 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. | — | 0.34 | 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. | — | 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. | 0.35 | 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. | 0.17 | 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. | 4.36 | 5.09 | 5.75 | 6.45 | 7.81 | 9.98 | 15.65 | 22.97 | 37.53 | 84.33 | — | — | — | — | — | — | — | 16.08 | 7.79 | 8.94 | 7.46 | |||||||
| Palantir Technologies Inc. | — | 0.03 | 0.04 | 0.04 | 0.05 | 0.05 | 0.06 | 0.06 | 0.06 | 0.07 | 0.07 | 0.08 | 0.10 | 0.10 | 0.10 | 0.11 | 0.11 | — | — | — | — | |||||||
| Palo Alto Networks Inc. | 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. | 0.19 | 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. | — | 0.19 | 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. | 0.38 | 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: 2026-01-31), 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 Q1 2026 Calculation
Debt to equity (including operating lease liability) = Total debt (including operating lease liability) ÷ Total Synopsys stockholders’ equity
= 10,868,557 ÷ 30,548,827 = 0.36
2 Click competitor name to see calculations.
The debt to equity ratio for the analyzed period demonstrates a period of relative stability followed by a significant shift in the most recent quarters. Initially, the ratio fluctuated within a narrow range before experiencing a substantial increase.
- Initial Period (Jan 31, 2021 – Oct 31, 2023)
- From January 31, 2021, through October 31, 2023, the debt to equity ratio remained relatively consistent, oscillating between 0.11 and 0.14. This indicates a stable capital structure during this timeframe, with debt financing representing approximately 11% to 14% of the company’s equity. Minor fluctuations within this range suggest no significant changes in the company’s reliance on debt versus equity.
- Significant Increase (Jan 31, 2025 – Oct 31, 2025)
- A dramatic increase in the debt to equity ratio is observed beginning January 31, 2025. The ratio jumps to 1.08, then decreases to 0.55, 0.50, and finally 0.36 by October 31, 2025. This suggests a substantial increase in debt relative to equity, potentially due to significant borrowing or a decrease in equity. The subsequent declines, while still elevated compared to prior periods, indicate some mitigation of the initial increase, possibly through increased equity or debt repayment.
- Trend Analysis
- Prior to January 31, 2025, the ratio exhibited a slight downward trend, moving from 0.13 to 0.10 between January 2021 and January 2024. This suggests a gradual decrease in financial leverage. However, this trend was abruptly reversed in early 2025, with the ratio experiencing a large spike. The subsequent decline from 1.08 to 0.36 indicates a correction, but the ratio remains considerably higher than its historical levels.
- Magnitude of Change
- The most significant change occurred between January 31, 2025, and October 31, 2025, where the ratio increased by over 980% from 0.12 to 1.08. This represents a substantial shift in the company’s financial structure and warrants further investigation to understand the underlying causes. The subsequent decrease, while substantial, did not return the ratio to its previous range.
In summary, the company maintained a stable debt to equity ratio for over two years, followed by a period of significant financial restructuring indicated by a large increase in debt relative to equity. While the ratio decreased from its peak in 2025, it remains elevated compared to historical levels.
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Debt to Capital
Synopsys Inc., debt to capital calculation (quarterly data)
| 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) | 22,962) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | 74,992) | 82,468) | 89,945) | 97,421) | |||||||
| Long-term debt | 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 | 10,044,210) | 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 | 30,548,827) | 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 | 40,593,037) | 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 | 0.32 | 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 | 0.15 | 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. | — | 0.35 | 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. | — | 0.62 | 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 | 0.32 | 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. | 0.18 | 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. | — | 0.21 | 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. | — | 0.65 | 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 | 0.23 | 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. | 0.11 | 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. | 0.79 | 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 | 0.94 | 0.89 | 0.90 | 0.88 | |||||||
| 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 | — | — | — | — | |||||||
| Palo Alto Networks Inc. | 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 | 0.13 | 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. | — | 0.10 | 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 | 0.26 | 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: 2026-01-31), 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 Q1 2026 Calculation
Debt to capital = Total debt ÷ Total capital
= 10,044,210 ÷ 40,593,037 = 0.25
2 Click competitor name to see calculations.
The debt to capital ratio demonstrates a significant shift over the observed period. Initially, the ratio remained consistently low and stable, followed by a dramatic increase in later periods.
- Initial Stability (Jan 31, 2021 – Oct 31, 2022)
- From January 31, 2021, through October 31, 2022, the debt to capital ratio remained remarkably consistent at 0.02. This indicates a very conservative capital structure with minimal reliance on debt financing relative to the company’s total capital. Total debt decreased steadily during this period, while total capital increased, contributing to the stable ratio.
- Period of Zero Leverage (Jan 31, 2023 – Oct 31, 2024)
- Beginning January 31, 2023, the debt to capital ratio decreased to 0.00 and remained at this level through October 31, 2024. This signifies a period where the company operated with no debt relative to its capital base. Total debt continued to decline, while total capital continued to grow.
- Significant Increase in Leverage (Jan 31, 2025 – Oct 31, 2025)
- A substantial increase in the debt to capital ratio is observed starting January 31, 2025. The ratio rose to 0.50, then 0.34, 0.32, and finally 0.25 by October 31, 2025. This indicates a considerable increase in debt financing as a proportion of total capital. The reported values for total debt and total capital in these periods are exceptionally large, suggesting a potential data anomaly or significant corporate action, such as a large debt issuance or capital restructuring.
- Recent Trend (Jan 31, 2026)
- The ratio decreased to 0.25 as of January 31, 2026. While still significantly higher than the levels observed prior to 2025, this represents a slight decrease from the peak values recorded earlier in the year.
The dramatic shift in the debt to capital ratio, particularly from 2025 onwards, warrants further investigation to understand the underlying reasons for the increased leverage. The magnitude of the change suggests a potentially transformative event impacting the company’s financial structure.
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Debt to Capital (including Operating Lease Liability)
Synopsys Inc., debt to capital (including operating lease liability) calculation (quarterly data)
| 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) | 22,962) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | 74,992) | 82,468) | 89,945) | 97,421) | |||||||
| Long-term debt | 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 | 10,044,210) | 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 | 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 | 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) | 10,868,557) | 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 | 30,548,827) | 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) | 41,417,384) | 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 | 0.34 | 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 | 0.22 | 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. | — | 0.36 | 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. | 0.19 | 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. | — | 0.26 | 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. | — | 0.66 | 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 | 0.25 | 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. | 0.14 | 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 | 0.84 | 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 | 0.94 | 0.89 | 0.90 | 0.88 | |||||||
| Palantir Technologies Inc. | — | 0.03 | 0.03 | 0.04 | 0.04 | 0.05 | 0.05 | 0.06 | 0.05 | 0.06 | 0.07 | 0.08 | 0.09 | 0.09 | 0.09 | 0.10 | 0.10 | — | — | — | — | |||||||
| Palo Alto Networks Inc. | 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. | 0.16 | 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. | — | 0.16 | 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. | 0.28 | 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: 2026-01-31), 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 Q1 2026 Calculation
Debt to capital (including operating lease liability) = Total debt (including operating lease liability) ÷ Total capital (including operating lease liability)
= 10,868,557 ÷ 41,417,384 = 0.26
2 Click competitor name to see calculations.
The debt to capital ratio, including operating lease liabilities, exhibited a period of relative stability followed by a significant increase. From January 2021 through October 2023, the ratio remained consistently between 0.10 and 0.12, indicating a stable capital structure with a moderate level of debt relative to equity and other capital sources. However, beginning in January 2025, a substantial upward movement is observed, culminating in ratios of 0.52, 0.35, 0.34, and 0.26 in subsequent quarters.
- Overall Trend
- The initial period demonstrates a conservative financial leverage position. The ratio fluctuated minimally, suggesting consistent financial policies regarding debt and capital management. The dramatic increase in the ratio starting in January 2025 signals a significant shift in the company’s capital structure, with a considerably larger proportion of funding now derived from debt or lease obligations.
- Stability (Jan 2021 – Oct 2023)
- Throughout this timeframe, the debt to capital ratio remained within a narrow range. This suggests that the company maintained a consistent approach to financing its operations and growth, relying on a balanced mix of debt and capital. The slight decrease from 0.12 to 0.10 between January 2021 and January 2023 could indicate a strengthening of the capital base or a modest reduction in debt.
- Significant Increase (Jan 2025 – Oct 2026)
- The substantial rise in the debt to capital ratio beginning in January 2025 warrants further investigation. The ratio more than quadrupled from 0.07 to 0.52, indicating a substantial increase in debt relative to capital. This could be due to a number of factors, including a large acquisition financed with debt, a significant increase in operating lease obligations, or a decline in equity. The subsequent decreases in the ratio during the following quarters, while still elevated, suggest a potential attempt to rebalance the capital structure, though the levels remain significantly higher than those observed prior to January 2025.
The observed changes in the debt to capital ratio suggest a notable alteration in the company’s financial strategy and risk profile. The initial stability provides a baseline for comparison, while the recent increase highlights a potential shift towards greater financial leverage.
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Debt to Assets
Synopsys Inc., debt to assets calculation (quarterly data)
| 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) | 22,962) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | 74,992) | 82,468) | 89,945) | 97,421) | |||||||
| Long-term debt | 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 | 10,044,210) | 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 | 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 | 0.28 | 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 | 0.09 | 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. | — | 0.21 | 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. | — | 0.48 | 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 | 0.26 | 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. | 0.09 | 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. | — | 0.15 | 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. | — | 0.40 | 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 | 0.16 | 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. | 0.07 | 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. | 0.51 | 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 | 0.64 | 0.59 | 0.64 | 0.62 | |||||||
| 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 | — | — | — | — | |||||||
| Palo Alto Networks Inc. | 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 | 0.08 | 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 | 0.07 | 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 | 0.18 | 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: 2026-01-31), 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 Q1 2026 Calculation
Debt to assets = Total debt ÷ Total assets
= 10,044,210 ÷ 47,237,928 = 0.21
2 Click competitor name to see calculations.
The debt to assets ratio demonstrates a significant shift over the observed period. Initially, the ratio remained consistently low, indicating a conservative capital structure. However, a substantial increase is evident in later periods, warranting further investigation.
- Initial Period (Jan 31, 2021 – Oct 31, 2022)
- From January 31, 2021, through October 31, 2022, the debt to assets ratio remained exceptionally stable and low, fluctuating between 0.01 and 0.02. This suggests a minimal reliance on debt financing relative to the company’s asset base during this timeframe. Total debt decreased steadily during this period, while total assets increased, contributing to the consistently low ratio.
- Transition and Dramatic Increase (Jan 31, 2023 – Apr 30, 2025)
- Beginning January 31, 2023, the ratio remained at 0.00 for several quarters. A dramatic increase is then observed, jumping to 0.42 by January 31, 2025. This represents a significant change in the company’s financial leverage. The increase coincides with a substantial rise in reported total debt, particularly from January 31, 2025, onwards, while total assets also increased, but at a slower rate than debt.
- Recent Period (Jul 31, 2025 – Oct 31, 2026)
- Following the peak of 0.42, the debt to assets ratio decreased to 0.30 by July 31, 2025, and further to 0.28 by October 31, 2025. The ratio then decreased to 0.21 by January 31, 2026. While still considerably higher than the levels observed prior to 2023, this indicates a partial reduction in leverage. The fluctuations in total debt and total assets during this period contribute to the observed changes in the ratio.
The substantial increase in the debt to assets ratio beginning in 2023 warrants further scrutiny. Understanding the reasons behind this increased debt financing – whether for acquisitions, investments, or other strategic purposes – is crucial for assessing the company’s long-term financial health and risk profile. The recent slight decrease in the ratio suggests a potential effort to manage leverage, but continued monitoring is recommended.
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Debt to Assets (including Operating Lease Liability)
Synopsys Inc., debt to assets (including operating lease liability) calculation (quarterly data)
| 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) | 22,962) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | 74,992) | 82,468) | 89,945) | 97,421) | |||||||
| Long-term debt | 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 | 10,044,210) | 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 | 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 | 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) | 10,868,557) | 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 | 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 | 0.30 | 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 | 0.13 | 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. | — | 0.23 | 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 | 0.10 | 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. | — | 0.19 | 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. | — | 0.43 | 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 | 0.18 | 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. | 0.10 | 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. | 0.58 | 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 | 0.64 | 0.59 | 0.64 | 0.62 | |||||||
| Palantir Technologies Inc. | — | 0.03 | 0.03 | 0.03 | 0.04 | 0.04 | 0.04 | 0.05 | 0.05 | 0.05 | 0.06 | 0.06 | 0.07 | 0.07 | 0.07 | 0.08 | 0.08 | — | — | — | — | |||||||
| Palo Alto Networks Inc. | 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 | 0.11 | 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. | — | 0.09 | 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. | 0.20 | 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: 2026-01-31), 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 Q1 2026 Calculation
Debt to assets (including operating lease liability) = Total debt (including operating lease liability) ÷ Total assets
= 10,868,557 ÷ 47,237,928 = 0.23
2 Click competitor name to see calculations.
The debt to assets ratio, including operating lease liability, for the analyzed period demonstrates a period of stability followed by a significant shift. From January 31, 2021, through October 31, 2023, the ratio remained consistently at 0.07 or 0.08. However, subsequent periods reveal a substantial increase, followed by a decline, indicating notable changes in the company’s capital structure and financial leverage.
- Overall Trend
- The ratio exhibited a stable pattern for over two years, suggesting consistent financial leverage. Beginning with the period ending January 31, 2025, a dramatic increase is observed, reaching 0.45. This is followed by a decrease in subsequent periods, ending at 0.23 as of October 31, 2026.
- Initial Stability (Jan 31, 2021 – Oct 31, 2023)
- Throughout this period, the debt to assets ratio fluctuated minimally, remaining between 0.07 and 0.08. This suggests a consistent approach to financing assets with debt, and a relatively low level of financial risk. The consistency indicates a stable capital structure and predictable debt management practices.
- Significant Increase (Jan 31, 2025 & Apr 30, 2025)
- A substantial increase in the ratio is evident in the periods ending January 31, 2025 (0.45) and April 30, 2025 (0.31). This indicates a significant rise in debt relative to assets, potentially due to increased borrowing or a decrease in asset value. The magnitude of this change warrants further investigation to understand the underlying reasons, such as a large acquisition, significant capital expenditure, or a revaluation of assets.
- Subsequent Decline (Jul 31, 2025 – Oct 31, 2026)
- Following the peak in April 2025, the ratio decreased to 0.30 as of July 31, 2025, and further to 0.23 by October 31, 2026. This suggests a reduction in debt or an increase in assets, partially offsetting the earlier increase in leverage. The decline could be attributed to debt repayment, asset appreciation, or improved profitability leading to increased retained earnings.
In conclusion, the company maintained a conservative debt to assets ratio for a considerable period. The recent volatility, characterized by a sharp increase followed by a decline, suggests a period of significant financial activity and restructuring. Continued monitoring of this ratio is recommended to assess the long-term implications of these changes on the company’s financial health and risk profile.
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Financial Leverage
Synopsys Inc., financial leverage calculation (quarterly data)
| 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 | 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 | 30,548,827) | 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 | 1.55 | 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 | 2.10 | 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. | — | 2.54 | 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. | — | 3.40 | 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. | — | 1.85 | 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. | 2.53 | 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. | — | 1.78 | 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. | — | 4.65 | 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. | 1.72 | 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. | 1.75 | 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. | 7.47 | 8.23 | 9.65 | 10.80 | 13.33 | 16.20 | 24.38 | 34.74 | 57.66 | 125.24 | — | — | — | — | — | — | — | 25.03 | 13.27 | 13.90 | 11.96 | |||||||
| Palantir Technologies Inc. | — | 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. | 2.72 | 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. | 1.63 | 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. | — | 2.01 | 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. | 1.93 | 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: 2026-01-31), 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 Q1 2026 Calculation
Financial leverage = Total assets ÷ Total Synopsys stockholders’ equity
= 47,237,928 ÷ 30,548,827 = 1.55
2 Click competitor name to see calculations.
The financial leverage of the entity, as indicated by the provided figures, demonstrates a generally decreasing trend over the observed period, with a notable exception in late 2025. Initially, the ratio remained relatively stable between January 2021 and October 2022, fluctuating within a narrow range. A more pronounced decline began in January 2023 and continued through July 2024, before experiencing a significant increase in the subsequent periods.
- Financial Leverage Trend (Jan 2021 – Oct 2022)
- From January 2021 to October 2022, the financial leverage ratio exhibited minimal variation, consistently ranging between 1.64 and 1.71. This suggests a stable capital structure during this timeframe, with a consistent relationship between total assets and stockholders’ equity. The slight increase to 1.71 in October 2022 could indicate a modest increase in reliance on debt financing or a decrease in equity.
- Financial Leverage Trend (Jan 2023 – Jul 2024)
- Beginning in January 2023, a clear downward trend in financial leverage is observed. The ratio decreased from 1.70 to 1.51 by July 2024. This decline suggests the entity was reducing its financial risk by decreasing its reliance on debt relative to equity, potentially through retained earnings or equity issuance. This period reflects a strengthening of the company’s financial position.
- Financial Leverage Trend (Oct 2024 – Jul 2025)
- A substantial increase in financial leverage occurred between October 2024 and July 2025, rising from 1.45 to 2.40. This represents a significant shift in the capital structure, indicating a considerable increase in debt financing or a decrease in equity. The magnitude of this change warrants further investigation to understand the underlying reasons, such as a large acquisition, share repurchase, or a decline in equity value.
- Financial Leverage Trend (Jul 2025 – Jan 2026)
- Following the peak in July 2025, the financial leverage ratio decreased to 1.55 by January 2026. While still elevated compared to earlier periods, this decline suggests a partial correction of the increase observed in the previous quarter. The ratio remains higher than the levels seen in the first half of 2024, indicating that the capital structure remains more leveraged than previously.
Overall, the entity’s financial leverage has undergone a period of stability, followed by a reduction in risk, and then a significant, albeit partially corrected, increase. The substantial change in late 2025 requires further scrutiny to determine its sustainability and potential impact on the entity’s long-term financial health.
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Interest Coverage
Synopsys Inc., interest coverage calculation (quarterly data)
| 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 | 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 | (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 | 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 | 162,715) | 194,752) | 146,502) | 94,336) | 11,139) | 14,614) | 11,742) | 7,067) | 1,738) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | |||||||
| Earnings before interest and tax (EBIT) | 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 | 2.97 | 4.12 | 5.50 | 11.64 | 31.24 | 44.06 | 78.90 | 174.76 | 852.56 | — | — | — | — | — | — | — | — | — | — | — | — | |||||||
| Benchmarks | ||||||||||||||||||||||||||||
| Interest Coverage, Competitors2 | ||||||||||||||||||||||||||||
| Accenture PLC | 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. | — | 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. | — | 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. | — | 14.06 | 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. | -2.37 | 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. | — | 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. | — | 6.34 | 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. | 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. | 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 | 6.21 | 6.27 | 6.48 | 6.76 | |||||||
| 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. | 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 | |||||||
Based on: 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 Q1 2026 Calculation
Interest coverage
= (EBITQ1 2026
+ EBITQ4 2025
+ EBITQ3 2025
+ EBITQ2 2025)
÷ (Interest expenseQ1 2026
+ Interest expenseQ4 2025
+ Interest expenseQ3 2025
+ Interest expenseQ2 2025)
= (241,768 + 711,276 + 335,812 + 490,527)
÷ (162,715 + 194,752 + 146,502 + 94,336)
= 2.97
2 Click competitor name to see calculations.
The interest coverage ratio exhibits a notable trend over the observed period. Initially, the ratio is unavailable for the first three years, indicating a potential lack of significant interest-bearing debt during that time. Beginning in January 2024, the ratio appears, starting at a very high level and then declining steadily over subsequent quarters.
- Initial High Coverage (Jan 2024 - Oct 2024)
- The ratio commences at 852.56, suggesting a very strong ability to meet interest obligations with earnings. This value decreases to 31.24 by October 2024, still representing a comfortable margin of safety. The decline during this period, while substantial in absolute terms, remains from an exceptionally high base.
- Significant Decline (Jan 2025 - Oct 2025)
- A more pronounced decrease is observed from January 2025 onwards. The ratio falls from 11.64 to 2.97 over the course of the year. This suggests a weakening capacity to cover interest expenses, potentially due to increasing debt levels or decreasing earnings.
- Recent Period (Jan 2026)
- The most recent reported value, as of January 2026, is 2.97. While still positive, this represents the lowest level of interest coverage within the observed timeframe and warrants further investigation. A ratio approaching 3 may indicate increased financial risk.
- Interest Expense Trend
- The available interest expense figures corroborate the observed trend in the interest coverage ratio. Interest expense is initially absent, then rises significantly from US$1,738 thousand in January 2024 to US$194,752 thousand in January 2026. This substantial increase in interest expense is the primary driver of the declining interest coverage ratio.
In summary, the company transitioned from a position of very strong interest coverage to a more vulnerable position over the analyzed period. The increasing interest expense, coupled with fluctuating earnings before interest and tax, has resulted in a substantial reduction in the ability to comfortably cover interest obligations. Continued monitoring of this ratio is recommended.
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