Synopsys Inc key statistics and ratios

In fiscal 2025, Synopsys Inc had return on equity of 7.1%, an operating margin of 13.0%, debt equal to 47.9% of equity and a current ratio of 1.62. Each ratio below is calculated from the figures on its income statement, balance sheet and cash flow pages.

Financial ratios

US$ thousands unless shown otherwise. Fiscal years, plus the last twelve months (LTM) when newer.

Synopsys Inc: financial ratios, annual
Fiscal year	2009Oct 2009	2010Oct 2010	2011Oct 2011	2012Oct 2012	2013Oct 2013	2014Oct 2014	2015Oct 2015	2016Oct 2016	2017Oct 2017	2018Oct 2018	2019Oct 2019	2020Oct 2020	2021Oct 2021	2022Oct 2022	2023Oct 2023	2024Oct 2024	2025Oct 2025	LTMJul 2026
Gross margin	79.9%	79.6%	77.8%	77.6%	76.9%	77.8%	76.9%	77.6%	76.0%	76.4%	77.6%	78.4%	79.5%	73.2%	80.6%	79.7%	77.0%	72.4%
Operating margin	15.3%	13.3%	13.9%	10.8%	12.6%	12.1%	11.9%	13.1%	12.8%	11.5%	15.5%	16.8%	17.5%	22.6%	23.9%	22.1%	13.0%	8.5%
Net margin	12.3%	17.2%	14.4%	10.4%	12.6%	12.6%	10.1%	11.0%	5.0%	13.9%	15.8%	18.0%	18.0%	19.4%	23.1%	36.9%	18.9%	11.4%
Free-cash-flow margin	14.7%	21.9%	24.9%	24.6%	22.0%	21.8%	18.2%	21.5%	20.6%	10.4%	17.9%	22.7%	33.3%	31.5%	28.5%	20.7%	19.1%	29.2%
Return on equity	9.1%	12.0%	10.5%	7.9%	9.4%	8.9%	7.3%	8.4%	4.2%	12.8%	14.1%	14.8%	14.8%	18.2%	21.1%	29.9%	7.1%	3.6%
Return on assets	5.7%	7.6%	6.7%	4.8%	5.8%	5.7%	4.6%	5.2%	2.6%	7.5%	8.5%	9.2%	9.0%	10.8%	12.5%	19.3%	4.3%	2.2%
Asset turnover	0.46	0.44	0.46	0.47	0.46	0.45	0.46	0.47	0.51	0.54	0.54	0.51	0.50	0.56	0.54	0.52	0.23	0.20
Current ratio	1.80	1.35	1.32	0.91	1.18	1.09	0.93	1.00	1.04	0.73	0.99	1.19	1.16	1.09	1.15	2.44	1.62	1.34
Debt to equity	0.0%	0.0%	0.0%	5.4%	3.8%	2.5%	6.5%	6.4%	4.4%	13.5%	3.4%	2.6%	1.9%	0.4%	0.3%	0.2%	47.9%	32.5%
Interest cover (operating income ÷ interest)	—	—	—	95.4x	145.3x	131.2x	94.7x	84.2x	47.6x	23.1x	44.6x	120.7x	—	—	—	36.8x	2.0x	1.3x
Effective tax rate	28.1%	−19.3%	−1.0%	9.3%	10.1%	4.8%	19.8%	19.0%	64.4%	−19.0%	2.4%	−4.0%	6.1%	12.6%	6.9%	6.6%	4.0%	17.2%
R&D as % of revenue	30.9%	32.5%	32.0%	33.1%	34.1%	34.9%	34.6%	35.4%	33.4%	34.8%	33.8%	34.7%	35.8%	31.3%	34.8%	34.0%	35.1%	30.6%
Capital spending as % of revenue	2.9%	2.8%	3.7%	3.1%	3.3%	5.0%	3.9%	2.8%	2.6%	3.2%	5.9%	4.2%	2.2%	2.7%	3.6%	2.3%	2.4%	2.0%
Free cash flow ÷ net income	119.3%	127.3%	173.0%	237.4%	174.0%	172.8%	180.7%	194.8%	411.6%	75.2%	113.2%	125.9%	184.7%	162.7%	123.1%	56.0%	101.3%	255.2%
Dividends and buybacks ÷ free cash flow	—	61.2%	104.9%	9.3%	33.6%	26.7%	63.7%	77.0%	67.6%	122.9%	54.6%	28.9%	53.8%	68.7%	76.7%	0.0%	0.0%	—

US$ thousands unless shown otherwise. Fiscal quarters.

Synopsys Inc: financial ratios, quarterly
Quarter	2024 Q4Oct 2024	2025 Q1Jan 2025	2025 Q2Apr 2025	2025 Q3Jul 2025	2025 Q4Oct 2025	2026 Q1Jan 2026	2026 Q2Apr 2026	2026 Q3Jul 2026
Gross margin	77.1%	81.4%	80.2%	78.1%	71.0%	73.5%	72.3%	72.6%
Operating margin	19.0%	17.3%	23.5%	9.5%	5.4%	8.4%	5.3%	14.4%
Net margin	68.1%	20.3%	21.5%	13.9%	19.9%	2.7%	0.8%	22.0%
Free-cash-flow margin	33.1%	−7.4%	13.7%	36.3%	26.8%	34.1%	25.3%	30.1%
Current ratio	2.44	2.68	7.02	1.62	1.62	1.36	1.43	1.34
Debt to equity	0.2%	0.2%	101.4%	51.9%	47.6%	32.9%	32.9%	32.2%
R&D as % of revenue	33.9%	38.0%	34.5%	35.9%	33.1%	29.7%	30.8%	29.1%

Returns use average equity or assets over the year. Return on equity is left blank when equity is negative or so small that the ratio says nothing (above ±200%); interest cover is left blank above 200 times. Price-based ratios such as P/E are on the valuation page.

Financial health

3 of 7 checks passed · July 31, 2026

What it owns · $47.7bn

Short-term assets $6.6bnLonger-term assets $41.1bn

What it owes, and who funded it · $47.7bn

Short-term liabilities $5.0bnLonger-term liabilities $11.6bnShareholders' equity $31.2bn

Short-term assets cover short-term liabilities $6.6bn of assets due within a year against $5.0bn of liabilities due within a year.
Short-term assets cover long-term liabilities $6.6bn short-term assets against $11.6bn of longer-dated liabilities.
More cash than debt $3.6bn of cash against $10.0bn of debt.
Debt below 40% of shareholders' equity Debt is 32% of equity.
Debt burden no higher than five years ago Debt to equity moved from 0% to 32% over five years.
A year's operating cash flow covers at least 20% of debt $2.9bn of operating cash flow against $10.0bn of debt.
Operating profit covers interest at least five times over Operating income of $802m against $624m of interest.

From Synopsys Inc's latest balance sheet as filed. Checks are fixed, documented rules (methodology), counted only where the company reports the figures — a dot means the filing doesn't break the item out. Descriptions of reported data, not advice.

Moat

59 /100

Moderate moat

How hard Synopsys's competitive advantage looks for rivals to wear away, judged from 10 years of its own filings: returns on capital, pricing power, profit durability, cash conversion and discipline.

Returns on capital 20 / 20

Cash operating profit has been a median 26.0% of total assets over 10 years.
Pricing power 20 / 20

Gross margin has been a median 77.8%, moving by 2.5 percentage points (standard deviation) across 10 years.
Durability 12 / 20

Operating margin has been a median 16.5%; its worst year was 8.5%.
Cash conversion 20 / 20

Free cash flow was positive in 10 of 10 years, at a median 21.6% of revenue.
Discipline 2 / 20

The diluted share count rose 21.4% over five years; stock-based pay has been a median 8.4% of revenue.

AI disruption exposure: High. In this industry, the core product is information work that AI systems increasingly perform. The score above includes a 15-point deduction for that exposure (74 before it).

A rules-based reading of reported figures, not a forecast and not investment advice. How the score is built: methodology.

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Figures from Synopsys Inc's SEC filings (10-K and 10-Q), retrieved October 20, 2026. How we read and check them: methodology and data sources. Not investment advice. Back to Synopsys Inc.