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: 2026-07-31), 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 organization's solvency profile is characterized by two distinct phases: a period of minimal leverage followed by a significant debt-funded event and a subsequent deleveraging trend.
- Debt Leverage Ratios
- From January 2021 through January 2025, debt-to-equity and debt-to-asset ratios remained negligible, frequently reaching 0.00, indicating a capital structure virtually free of long-term debt. A sharp inflection point occurred in April 2025, where the debt-to-equity ratio spiked to 1.01 and the debt-to-assets ratio rose to 0.42. Following this peak, a consistent downward trajectory is observed, with the debt-to-equity ratio decreasing to 0.32 and the debt-to-assets ratio stabilizing at 0.21 by July 2026.
- Capital Structure and Lease Liabilities
- The inclusion of operating lease liabilities reveals a more consistent baseline of obligations. Between January 2021 and January 2025, the debt-to-equity ratio including leases remained stable between 0.07 and 0.14. Mirroring the standard debt metrics, these figures peaked in April 2025 at 1.08 for debt-to-equity and 0.52 for debt-to-capital. A subsequent steady decline toward July 2026 indicates a systemic reduction of total liabilities relative to the equity and capital base.
- Financial Leverage and Solvency Risk
- Financial leverage remained relatively constant between 1.40 and 1.71 for the majority of the period before peaking at 2.40 in April 2025. The subsequent return to 1.53 by July 2026 suggests a restoration of the previous leverage equilibrium. However, a critical shift is evident in the interest coverage ratio, which declined precipitously from 852.56 in January 2024 to a low of 2.26 in April 2026, eventually recovering slightly to 3.08. This dramatic contraction indicates that the increased debt load significantly intensified interest expenses relative to earnings, reducing the margin of safety for debt servicing.
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Debt Ratios
Coverage Ratios
Debt to Equity
Synopsys Inc., debt to equity calculation (quarterly data)
| Jul 31, 2026 | 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 | 1,020,247) | 22,117) | 22,117) | 22,117) | 22,117) | 22,962) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | 74,992) | 82,468) | 89,945) | 97,421) | |||||||
| Long-term debt | 9,017,113) | 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 | 10,037,360) | 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 | 31,152,539) | 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 | 0.32 | 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 | 0.16 | 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. | 0.54 | 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. | — | 1.11 | 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. | — | 0.36 | 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 | — | — | — | — | |||||||
| Datadog Inc. | — | 0.23 | 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. | — | 1.80 | 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. | 0.30 | 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 | — | — | — | — | |||||||
| Microsoft Corp. | 0.10 | 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 | — | — | — | — | |||||||
| Oracle Corp. | 3.50 | 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 | 0.00 | — | — | — | — | |||||||
| Palo Alto Networks Inc. | 0.05 | 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 | — | — | — | — | |||||||
| Salesforce Inc. | 0.14 | 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. | — | 0.60 | 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. | 0.34 | 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: 2026-07-31), 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 Q3 2026 Calculation
Debt to equity = Total debt ÷ Total Synopsys stockholders’ equity
= 10,037,360 ÷ 31,152,539 = 0.32
2 Click competitor name to see calculations.
The company maintained an exceptionally conservative capital structure from January 2021 through January 2025, characterized by a consistent reduction in total debt and a steady organic growth in stockholders' equity. During this period, total debt declined from 123,079 thousand US$ to 14,220 thousand US$, while equity grew from approximately 4.88 billion US$ to 9.30 billion US$. This trajectory resulted in a debt-to-equity ratio that effectively trended toward zero, indicating a near-total reliance on internal funding and equity rather than borrowed capital.
A fundamental shift in the solvency profile occurred starting in April 2025, marked by a massive increase in both liabilities and equity. Total debt surged from 14,220 thousand US$ in January 2025 to over 10 billion US$ by April 2025, peaking at approximately 14.34 billion US$ in July 2025. Simultaneously, stockholders' equity experienced a sharp increase, jumping from 9.30 billion US$ to over 27.61 billion US$ in the same period, suggesting a major capital event such as a large-scale acquisition or a significant restructuring of the balance sheet.
- Debt to Equity Ratio Volatility
- The ratio remained negligible (between 0.03 and 0.00) for the first four years of the analysis. A sharp peak was observed on April 30, 2025, where the ratio reached 1.01, reflecting the immediate impact of the increased debt load relative to equity.
- Solvency Recovery Trend
- Following the peak in April 2025, a consistent downward trend in the debt-to-equity ratio is observed. The ratio declined from 1.01 to 0.32 by July 31, 2026. This improvement is attributed to the continued expansion of stockholders' equity, which reached 31.15 billion US$, outpacing the stabilization of total debt, which leveled off around 10.03 billion US$.
- Long-term Leverage Position
- While the company's leverage is significantly higher in 2026 than it was in 2021, the steady decline in the ratio from 1.01 to 0.32 indicates a rapid strengthening of the solvency position following the 2025 capital expansion.
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Debt to Equity (including Operating Lease Liability)
Synopsys Inc., debt to equity (including operating lease liability) calculation (quarterly data)
| Jul 31, 2026 | 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 | 1,020,247) | 22,117) | 22,117) | 22,117) | 22,117) | 22,962) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | 74,992) | 82,468) | 89,945) | 97,421) | |||||||
| Long-term debt | 9,017,113) | 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 | 10,037,360) | 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 | 137,837) | 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 | 666,592) | 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) | 10,841,789) | 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 | 31,152,539) | 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 | 0.35 | 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 | 0.26 | 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. | 0.57 | 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 | |||||||
| Datadog Inc. | — | 0.29 | 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. | — | 1.89 | 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. | 0.33 | 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 | — | — | — | — | |||||||
| Microsoft Corp. | 0.14 | 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 | — | — | — | — | |||||||
| Oracle Corp. | 3.98 | 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. | — | 0.02 | 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. | 0.07 | 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 | — | — | — | — | |||||||
| Salesforce Inc. | 0.19 | 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. | — | 0.68 | 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. | 0.43 | 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: 2026-07-31), 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 Q3 2026 Calculation
Debt to equity (including operating lease liability) = Total debt (including operating lease liability) ÷ Total Synopsys stockholders’ equity
= 10,841,789 ÷ 31,152,539 = 0.35
2 Click competitor name to see calculations.
The solvency analysis reveals a distinct three-phase evolution in the capital structure, transitioning from a period of conservative stability to a significant balance sheet expansion, followed by a strategic deleveraging phase.
- Period of Conservative Leverage (January 2021 – January 2024)
- During this timeframe, total debt remained relatively stagnant, fluctuating within a narrow range between approximately $580 million and $692 million. In contrast, stockholders' equity exhibited consistent growth, rising from $4.88 billion to $9.30 billion. This divergence resulted in a steadily declining debt-to-equity ratio, which moved from 0.13 to a low of 0.07 by January 2024, indicating a highly equity-funded operation with minimal reliance on external debt.
- Balance Sheet Expansion and Leverage Spike (April 2025 – July 2025)
- A significant structural shift occurred in April 2025, marked by a substantial increase in total liabilities. Total debt surged from $665 million in January 2025 to $10.74 billion in April 2025, peaking at $15.14 billion in July 2025. While stockholders' equity also increased sharply during this period, the proportional increase in debt was more aggressive, causing the debt-to-equity ratio to spike to 1.08 in April 2025. This represents the highest leverage point in the observed period.
- Deleveraging and Capital Rebalancing (October 2025 – July 2026)
- From October 2025 onward, a trend of deleveraging is observed. Total debt decreased from its peak, stabilizing at approximately $10.84 billion by July 2026. Simultaneously, stockholders' equity continued to climb, reaching $31.15 billion. The combination of debt reduction and equity accumulation led to a rapid compression of the debt-to-equity ratio, which fell from 1.08 to 0.35 by July 2026. This indicates a strategic movement to restore a more conservative solvency profile following the expansion of 2025.
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Debt to Capital
Synopsys Inc., debt to capital calculation (quarterly data)
| Jul 31, 2026 | Apr 30, 2026 | Jan 31, 2026 | Oct 31, 2025 | Jul 31, 2025 | Apr 30, 2025 | Jan 31, 2025 | Oct 31, 2024 | Jul 31, 2024 | Apr 30, 2024 | Jan 31, 2024 | Oct 31, 2023 | Jul 31, 2023 | Apr 30, 2023 | Jan 31, 2023 | Oct 31, 2022 | Jul 31, 2022 | Apr 30, 2022 | Jan 31, 2022 | Oct 31, 2021 | Jul 31, 2021 | Apr 30, 2021 | Jan 31, 2021 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||||||||||||||||||||||||||
| Short-term debt | 1,020,247) | 22,117) | 22,117) | 22,117) | 22,117) | 22,962) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | 74,992) | 82,468) | 89,945) | 97,421) | |||||||
| Long-term debt | 9,017,113) | 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 | 10,037,360) | 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 | 31,152,539) | 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 | 41,189,899) | 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 | 0.24 | 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 | 0.14 | 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 | 0.37 | 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. | — | 0.53 | 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. | — | 0.27 | 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 | — | — | — | — | |||||||
| Datadog Inc. | — | 0.18 | 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. | — | 0.64 | 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. | 0.23 | 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 | — | — | — | — | |||||||
| Microsoft Corp. | 0.09 | 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 | — | — | — | — | |||||||
| Oracle Corp. | 0.78 | 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 | 0.00 | — | — | — | — | |||||||
| Palo Alto Networks Inc. | 0.05 | 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 | — | — | — | — | |||||||
| Salesforce Inc. | 0.12 | 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. | — | 0.38 | 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 | 0.25 | 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: 2026-07-31), 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 Q3 2026 Calculation
Debt to capital = Total debt ÷ Total capital
= 10,037,360 ÷ 41,189,899 = 0.24
2 Click competitor name to see calculations.
The solvency profile of the organization underwent a significant transformation between January 2021 and July 2026, shifting from a near-zero leverage position to a period of substantial debt accumulation followed by a steady deleveraging trend.
- Low Leverage Period (January 2021 – January 2025)
- During this phase, the organization maintained an exceptionally conservative capital structure. The debt-to-capital ratio began at 0.02 and declined to 0.00 by January 2022, remaining at that level through January 2025. Total debt decreased consistently from 123 million USD in January 2021 to approximately 14 million USD by January 2025. Concurrently, total capital grew steadily from approximately 5 billion USD to 9.3 billion USD, indicating that growth was funded almost entirely through equity or internal cash flows.
- Capital Structure Pivot (April 2025)
- A drastic shift in financial strategy is observed in April 2025, marked by a massive increase in total debt, which rose from 14.2 million USD in January 2025 to over 10 billion USD. This surge caused the debt-to-capital ratio to spike to 0.50. Total capital also expanded significantly to approximately 20 billion USD during this quarter, suggesting a major capitalized event or strategic acquisition.
- Deleveraging Trend (July 2025 – July 2026)
- Following the spike in April 2025, a consistent downward trend in the debt-to-capital ratio is evident. The ratio decreased from 0.50 to 0.34 in July 2025, and continued to decline to 0.24 by July 2026. While total debt remained high, fluctuating around the 10 billion USD mark, total capital expanded further to approximately 41 billion USD. This indicates that the reduction in the ratio was primarily driven by a substantial increase in total capital rather than a significant reduction in the nominal amount of debt.
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Debt to Capital (including Operating Lease Liability)
Synopsys Inc., debt to capital (including operating lease liability) calculation (quarterly data)
| Jul 31, 2026 | 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 | 1,020,247) | 22,117) | 22,117) | 22,117) | 22,117) | 22,962) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | 74,992) | 82,468) | 89,945) | 97,421) | |||||||
| Long-term debt | 9,017,113) | 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 | 10,037,360) | 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 | 137,837) | 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 | 666,592) | 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) | 10,841,789) | 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 | 31,152,539) | 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) | 41,994,328) | 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 | 0.26 | 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 | 0.21 | 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. | 0.37 | 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 | |||||||
| Datadog Inc. | — | 0.23 | 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. | — | 0.65 | 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. | 0.25 | 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 | — | — | — | — | |||||||
| Microsoft Corp. | 0.12 | 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 | — | — | — | — | |||||||
| Oracle Corp. | 0.80 | 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 | 0.02 | 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. | 0.07 | 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 | — | — | — | — | |||||||
| Salesforce Inc. | 0.16 | 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. | — | 0.40 | 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. | 0.30 | 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: 2026-07-31), 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 Q3 2026 Calculation
Debt to capital (including operating lease liability) = Total debt (including operating lease liability) ÷ Total capital (including operating lease liability)
= 10,841,789 ÷ 41,994,328 = 0.26
2 Click competitor name to see calculations.
The financial trajectory of the company's solvency position reveals two distinct phases: a prolonged period of minimal leverage and high stability, followed by a significant expansion of the capital structure beginning in early 2025.
- Initial Solvency Phase (January 2021 – January 2025)
- Throughout this interval, total debt remained consistently low, fluctuating within a narrow range between approximately $580 million and $692 million. During the same period, total capital experienced steady organic growth, rising from $5.5 billion to nearly $10 billion. This divergence resulted in a gradual decline in the debt-to-capital ratio, which moved from 0.12 in early 2021 to a low of 0.07 by January 2025, reflecting a highly conservative leverage profile.
- Capital Structure Inflection (April 2025 – July 2025)
- A substantial shift in the financing structure occurred in April 2025, characterized by a rapid increase in total debt from $665 million to over $10.7 billion. This caused the debt-to-capital ratio to spike to 0.52. The expansion peaked in July 2025, with total debt reaching $15.1 billion and total capital expanding to $42.7 billion. This abrupt increase indicates a major strategic capital event, such as a significant acquisition or large-scale debt issuance.
- Stabilization and Deleveraging Trend (October 2025 – July 2026)
- Following the peak in mid-2025, the debt-to-capital ratio entered a consistent downward trend. The ratio decreased from 0.34 in October 2025 to 0.26 by January 2026, remaining stable at that level through July 2026. While total debt remains significantly higher than the baseline established prior to 2025, the stabilization of the ratio at 0.26 suggests a managed approach to deleveraging and a realignment of the balance sheet following the period of rapid expansion.
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Debt to Assets
Synopsys Inc., debt to assets calculation (quarterly data)
| Jul 31, 2026 | Apr 30, 2026 | Jan 31, 2026 | Oct 31, 2025 | Jul 31, 2025 | Apr 30, 2025 | Jan 31, 2025 | Oct 31, 2024 | Jul 31, 2024 | Apr 30, 2024 | Jan 31, 2024 | Oct 31, 2023 | Jul 31, 2023 | Apr 30, 2023 | Jan 31, 2023 | Oct 31, 2022 | Jul 31, 2022 | Apr 30, 2022 | Jan 31, 2022 | Oct 31, 2021 | Jul 31, 2021 | Apr 30, 2021 | Jan 31, 2021 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||||||||||||||||||||||||||
| Short-term debt | 1,020,247) | 22,117) | 22,117) | 22,117) | 22,117) | 22,962) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | 74,992) | 82,468) | 89,945) | 97,421) | |||||||
| Long-term debt | 9,017,113) | 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 | 10,037,360) | 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 | 47,726,263) | 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 | 0.21 | 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 | 0.07 | 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. | 0.21 | 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. | — | 0.43 | 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. | — | 0.21 | 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 | — | — | — | — | |||||||
| Datadog Inc. | — | 0.13 | 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. | — | 0.41 | 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. | 0.16 | 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 | — | — | — | — | |||||||
| Microsoft Corp. | 0.06 | 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 | — | — | — | — | |||||||
| Oracle Corp. | 0.55 | 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 | 0.00 | — | — | — | — | |||||||
| Palo Alto Networks Inc. | 0.03 | 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 | — | — | — | — | |||||||
| Salesforce Inc. | 0.09 | 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. | — | 0.24 | 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 | 0.17 | 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: 2026-07-31), 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 Q3 2026 Calculation
Debt to assets = Total debt ÷ Total assets
= 10,037,360 ÷ 47,726,263 = 0.21
2 Click competitor name to see calculations.
The solvency profile of the entity exhibits two distinct financial phases: a prolonged period of extreme deleveraging and asset growth, followed by a significant capital expansion event beginning in early 2025.
- Deleveraging and Asset Accretion (January 2021 – January 2025)
- During this period, a consistent downward trend in total debt was observed, with obligations decreasing from approximately 123 million USD to 14 million USD. Simultaneously, total assets grew steadily from 8 billion USD to 13 billion USD. This inverse relationship resulted in a Debt to Assets ratio that declined from 0.02 to 0.00, indicating a transition to a virtually debt-free balance sheet and a highly conservative solvency position.
- Capital Expansion and Leverage Spike (April 2025)
- A substantial shift in the capital structure occurred in April 2025, characterized by a massive increase in both liabilities and assets. Total debt surged from 14 million USD to over 10 billion USD, while total assets increased from 13 billion USD to approximately 23.7 billion USD. This event caused the Debt to Assets ratio to spike to 0.42, marking a departure from the previous low-leverage strategy.
- Solvency Stabilization (July 2025 – July 2026)
- Following the initial expansion, the Debt to Assets ratio entered a phase of stabilization. The ratio decreased from its peak of 0.42 in April 2025 to 0.30 in July 2025, and further declined to 0.21 by October 2025. This level of 0.21 remained constant through July 2026. During this time, total assets peaked at 48.2 billion USD, suggesting that the increase in the asset base and potential debt repayments effectively neutralized the leverage ratio at a new, higher equilibrium.
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Debt to Assets (including Operating Lease Liability)
Synopsys Inc., debt to assets (including operating lease liability) calculation (quarterly data)
| Jul 31, 2026 | 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 | 1,020,247) | 22,117) | 22,117) | 22,117) | 22,117) | 22,962) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | 74,992) | 82,468) | 89,945) | 97,421) | |||||||
| Long-term debt | 9,017,113) | 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 | 10,037,360) | 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 | 137,837) | 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 | 666,592) | 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) | 10,841,789) | 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 | 47,726,263) | 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 | 0.23 | 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 | 0.12 | 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. | 0.23 | 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 | |||||||
| Datadog Inc. | — | 0.17 | 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. | — | 0.43 | 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. | 0.17 | 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 | — | — | — | — | |||||||
| Microsoft Corp. | 0.08 | 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 | — | — | — | — | |||||||
| Oracle Corp. | 0.62 | 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 | 0.02 | 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. | 0.04 | 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 | — | — | — | — | |||||||
| Salesforce Inc. | 0.12 | 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. | — | 0.27 | 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 | 0.21 | 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: 2026-07-31), 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 Q3 2026 Calculation
Debt to assets (including operating lease liability) = Total debt (including operating lease liability) ÷ Total assets
= 10,841,789 ÷ 47,726,263 = 0.23
2 Click competitor name to see calculations.
The solvency profile exhibits two distinct phases: a period of extreme stability and low leverage followed by a massive expansion of the balance sheet and a corresponding increase in the debt-to-assets ratio.
- Stability and Low Leverage Phase (January 2021 – October 2024)
- During this interval, the company maintained a highly conservative capital structure. Total debt, including operating lease liabilities, remained relatively flat, fluctuating narrowly between 580 million and 692 million USD. Concurrently, total assets grew steadily from approximately 8 billion USD to 13 billion USD. This resulted in a debt-to-assets ratio that remained consistently low, ranging from 0.08 down to 0.05, indicating minimal reliance on borrowed funds relative to the asset base.
- Balance Sheet Expansion and Leverage Spike (January 2025 – April 2025)
- A significant structural shift occurred starting in January 2025, characterized by a sharp increase in both liabilities and assets. Total debt surged from 684 million USD in July 2024 to 10.7 billion USD by January 2025, eventually peaking at 15.1 billion USD in April 2025. Total assets mirrored this growth, jumping to 23.7 billion USD in January 2025 and peaking at 48.2 billion USD in April 2025. This synchronized expansion led to a peak debt-to-assets ratio of 0.45 in January 2025, marking the highest level of leverage observed in the period.
- Stabilization and Ratio Normalization (May 2025 – July 2026)
- Following the peak in early 2025, the debt-to-assets ratio entered a downward trend. While total assets remained elevated around the 47 billion to 48 billion USD range, total debt decreased from its 15.1 billion USD peak to approximately 10.8 billion USD by July 2026. Consequently, the ratio declined from 0.45 to a stabilized level of 0.23. This suggests a period of deleveraging or asset optimization following the initial expansion, though the overall solvency position remains more leveraged than the 2021–2024 baseline.
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Financial Leverage
Synopsys Inc., financial leverage calculation (quarterly data)
| Jul 31, 2026 | 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 | 47,726,263) | 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 | 31,152,539) | 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 | 1.53 | 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 | 2.16 | 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. | 2.55 | 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. | — | 2.61 | 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. | — | 1.76 | 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 | — | — | — | — | |||||||
| Datadog Inc. | — | 1.73 | 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. | — | 4.41 | 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. | 1.91 | 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 | — | — | — | — | |||||||
| Microsoft Corp. | 1.68 | 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 | — | — | — | — | |||||||
| Oracle Corp. | 6.37 | 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. | — | 1.19 | 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. | 1.67 | 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 | — | — | — | — | |||||||
| Salesforce Inc. | 1.59 | 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. | — | 2.53 | 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. | 2.00 | 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: 2026-07-31), 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 Q3 2026 Calculation
Financial leverage = Total assets ÷ Total Synopsys stockholders’ equity
= 47,726,263 ÷ 31,152,539 = 1.53
2 Click competitor name to see calculations.
The financial position from early 2021 through mid-2026 is characterized by a period of steady expansion followed by a significant capital event in the first half of 2025. Asset growth remained incremental until 2024, after which a substantial expansion of the balance sheet occurred, with total assets shifting from approximately 13 billion USD in January 2025 to over 48 billion USD by April 2025.
- Asset and Equity Expansion
- Total assets exhibited a consistent upward trajectory, growing from 8.01 billion USD in January 2021 to 13.04 billion USD by January 2025. A sharp escalation occurred in April 2025, where assets reached 48.23 billion USD. Simultaneously, stockholders' equity grew steadily from 4.88 billion USD in January 2021 to 9.30 billion USD in January 2025, followed by a significant increase to 27.61 billion USD in April 2025 and reaching 31.15 billion USD by July 2026.
- Financial Leverage Trends
- The financial leverage ratio remained relatively stable, oscillating between 1.64 and 1.71 from January 2021 through October 2022. A deleveraging trend became evident starting in early 2023, with the ratio declining to a period low of 1.40 by January 2025, indicating a reduced reliance on debt relative to equity.
- Structural Shift and Stabilization
- A notable spike in financial leverage occurred in April 2025, where the ratio rose to 2.40. This peak coincides with the massive increase in total assets, suggesting that the initial funding for this expansion relied more heavily on liabilities than equity. This trend reversed quickly, with the ratio descending to 1.75 by April 2025 and continuing a gradual decline to 1.53 by July 2026, signaling a return to a more conservative capital structure and a normalization of solvency levels.
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Interest Coverage
Synopsys Inc., interest coverage calculation (quarterly data)
| Jul 31, 2026 | 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 | 545,800) | 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 | (94) | (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 | 138,216) | 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 | 133,234) | 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) | 817,156) | 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 | 3.08 | 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 | 41.06 | 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. | 36.70 | 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. | — | 26.42 | 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. | — | 15.57 | 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 | — | — | — | — | |||||||
| Datadog Inc. | — | 18.53 | 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 | 6.41 | 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. | 24.85 | 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 | — | — | — | — | |||||||
| Oracle Corp. | 5.43 | 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. | 6,985.00 | 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 | — | — | — | — | |||||||
| Salesforce Inc. | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | |||||||
Based on: 10-Q (reporting date: 2026-07-31), 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 Q3 2026 Calculation
Interest coverage
= (EBITQ3 2026
+ EBITQ2 2026
+ EBITQ1 2026
+ EBITQ4 2025)
÷ (Interest expenseQ3 2026
+ Interest expenseQ2 2026
+ Interest expenseQ1 2026
+ Interest expenseQ4 2025)
= (817,156 + 152,640 + 241,768 + 711,276)
÷ (133,234 + 133,364 + 162,715 + 194,752)
= 3.08
2 Click competitor name to see calculations.
The financial data reveals a significant shift in the solvency profile, characterized by a dramatic increase in debt servicing costs that has offset substantial growth in operating profitability. While the company has successfully expanded its earnings capacity, the rapid escalation of interest expenses has led to a sharp compression of the margin of safety regarding interest obligations.
- Earnings Before Interest and Tax (EBIT) Trends
- A long-term upward trajectory in EBIT is evident, rising from 177.1 million in January 2021 to a peak of 817.2 million by July 2026. Although the overall trend is positive, the growth is marked by periodic volatility, with significant quarterly fluctuations observed particularly between 2022 and 2026.
- Interest Expense Trajectory
- Interest obligations remained negligible or unreported until January 2024. Following this period, a rapid and steep increase in interest expenses occurred, escalating from 1.7 million in January 2024 to a maximum of 194.8 million in July 2025. A critical inflection point is noted between January 2025 and April 2025, where interest expenses surged from 11.1 million to 94.3 million.
- Interest Coverage Analysis
- The interest coverage ratio demonstrates a severe downward trend, plummeting from an exceptionally high 852.56 in January 2024 to a low of 2.26 by April 2026. This decline indicates a substantial reduction in the company's ability to cover its interest payments from operating profits. A modest recovery to 3.08 was observed in the final period of July 2026, driven by a sharp rebound in EBIT despite sustained high interest costs.
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