Stock Analysis on Net

Synopsys Inc. (NASDAQ:SNPS)

$24.99

Return on Assets (ROA)
since 2005

Microsoft Excel

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Calculation

Synopsys Inc., ROA, long-term trends, calculation

Microsoft Excel

Based on: 10-K (reporting date: 2025-10-31), 10-K (reporting date: 2024-10-31), 10-K (reporting date: 2023-10-31), 10-K (reporting date: 2022-10-31), 10-K (reporting date: 2021-10-31), 10-K (reporting date: 2020-10-31), 10-K (reporting date: 2019-10-31), 10-K (reporting date: 2018-10-31), 10-K (reporting date: 2017-10-31), 10-K (reporting date: 2016-10-31), 10-K (reporting date: 2015-10-31), 10-K (reporting date: 2014-10-31), 10-K (reporting date: 2013-10-31), 10-K (reporting date: 2012-10-31), 10-K (reporting date: 2011-10-31), 10-K (reporting date: 2010-10-31), 10-K (reporting date: 2009-10-31), 10-K (reporting date: 2008-10-31), 10-K (reporting date: 2007-10-31), 10-K (reporting date: 2006-10-31), 10-K (reporting date: 2005-10-31).

1 US$ in thousands


The return on assets (ROA) exhibited a significant degree of fluctuation over the observed period, spanning from 2005 to 2025. Initially, the ROA was negative in 2005, indicating a loss relative to the company’s assets. However, a substantial improvement followed, with the ROA increasing steadily from 1.15% in 2006 to a peak of 6.93% in 2008.

Initial Growth & Stabilization (2005-2010)
Following the negative ROA in 2005, the period between 2006 and 2010 demonstrated consistent growth, albeit with some moderation. The ROA remained above 5% throughout this timeframe, peaking in 2008 and then stabilizing in the 5.71% to 7.21% range.

A slight decline in ROA was observed between 2011 and 2013, falling from 6.57% to 5.68%. This period suggests a potential slowdown in the efficiency of asset utilization. However, the ROA recovered in 2014 and 2015, remaining relatively stable around the 4.5% to 5.1% level.

Moderate Fluctuations (2011-2015)
The years 2011 through 2015 were characterized by moderate fluctuations in ROA. While not exhibiting a strong upward or downward trend, the values remained within a relatively narrow band, suggesting a period of consistent, but not exceptional, performance.

From 2016 onwards, the ROA experienced a more pronounced upward trajectory. A significant dip to 2.53% in 2017 was followed by substantial increases, reaching 7.04% in 2018, 8.31% in 2019, and continuing to climb to 8.27% in 2020. The ROA then accelerated further, reaching double-digit figures in 2021 (10.45%) and 2022 (11.90%).

Significant Expansion (2016-2022)
The period from 2016 to 2022 witnessed a remarkable expansion in ROA. This suggests a substantial improvement in the company’s ability to generate earnings from its asset base. The consistent upward trend indicates effective asset management and potentially favorable market conditions.

The ROA peaked at 17.31% in 2023, representing the highest value in the observed period. However, a considerable decrease to 2.76% occurred in 2024, and the final value for 2025 is 2.76%. This sharp decline warrants further investigation to determine the underlying causes, such as a significant increase in assets without a corresponding increase in net income, or a substantial loss incurred in that year.

Recent Volatility (2023-2025)
The most recent years demonstrate significant volatility in ROA. The peak in 2023 was followed by a dramatic decline in both 2024 and 2025. This suggests a potential shift in the company’s performance or a one-time event impacting profitability. The substantial increase in total assets in 2024 and 2025, coupled with the decreased ROA, indicates a potential issue with asset utilization efficiency.

Comparison to Competitors

Synopsys Inc., ROA, long-term trends, comparison to competitors

Microsoft Excel

Based on: 10-K (reporting date: 2025-10-31), 10-K (reporting date: 2024-10-31), 10-K (reporting date: 2023-10-31), 10-K (reporting date: 2022-10-31), 10-K (reporting date: 2021-10-31), 10-K (reporting date: 2020-10-31), 10-K (reporting date: 2019-10-31), 10-K (reporting date: 2018-10-31), 10-K (reporting date: 2017-10-31), 10-K (reporting date: 2016-10-31), 10-K (reporting date: 2015-10-31), 10-K (reporting date: 2014-10-31), 10-K (reporting date: 2013-10-31), 10-K (reporting date: 2012-10-31), 10-K (reporting date: 2011-10-31), 10-K (reporting date: 2010-10-31), 10-K (reporting date: 2009-10-31), 10-K (reporting date: 2008-10-31), 10-K (reporting date: 2007-10-31), 10-K (reporting date: 2006-10-31), 10-K (reporting date: 2005-10-31).


Comparison to Sector (Software & Services)


Comparison to Industry (Information Technology)