Stock Analysis on Net
Stock Analysis on Net

Synopsys Inc. (NASDAQ:SNPS)

Common-Size Balance Sheet: Assets 

Synopsys Inc., common-size consolidated balance sheet: assets

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Oct 31, 2025 Oct 31, 2024 Oct 31, 2023 Oct 31, 2022 Oct 31, 2021 Oct 31, 2020
Cash and cash equivalents 5.99 29.80 13.93 15.05 16.37 15.39
Short-term investments 0.15 1.18 1.47 1.57 1.69 0.00
Cash, cash equivalents and short-term investments 6.14% 30.98% 15.39% 16.62% 18.06% 15.39%
Accounts receivable, net 3.12 7.15 9.16 8.45 6.50 9.72
Inventories 0.76 2.77 3.15 2.25 2.62 2.40
Prepaid and other current assets 2.45 8.59 5.49 4.66 4.91 4.24
Current assets 12.47% 49.49% 33.20% 31.99% 32.09% 31.75%
Property and equipment, net 1.44 4.31 5.39 5.13 5.40 6.03
Operating lease right-of-use assets, net 1.46 4.33 5.50 5.94 5.64 5.80
Goodwill 55.78 26.38 39.39 40.80 40.86 41.91
Intangible assets, net 26.29 1.49 3.62 4.10 3.19 3.17
Deferred income taxes 0.23 9.54 8.33 7.12 7.00 6.20
Other long-term assets 2.33 4.46 4.56 4.92 5.84 5.16
Long-term assets 87.53% 50.51% 66.80% 68.01% 67.91% 68.25%
Total assets 100.00% 100.00% 100.00% 100.00% 100.00% 100.00%

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).

The composition of assets exhibited significant shifts over the observed period. Current assets demonstrated a notable increase in 2024, followed by a substantial decline in 2025, while long-term assets followed an inverse pattern. Within both current and long-term asset categories, specific components experienced considerable fluctuations.

Liquidity and Cash Position
Cash and cash equivalents as a percentage of total assets initially fluctuated between 15.39% and 16.37% before decreasing to 13.93% in 2023. A dramatic increase to 29.80% occurred in 2024, followed by a sharp decline to 5.99% in 2025. Short-term investments mirrored this trend, albeit on a smaller scale, diminishing to a minimal 0.15% of total assets by 2025. Consequently, the combined percentage of cash, cash equivalents, and short-term investments showed a similar pattern of increase in 2024 and decrease in 2025.
Current Asset Composition
Accounts receivable, net, decreased from 9.72% in 2020 to 6.50% in 2021, then increased to 9.16% in 2023 before falling to 3.12% in 2025. Inventories remained relatively stable between 2.40% and 3.15% before a significant decrease to 0.76% in 2025. Prepaid and other current assets consistently increased, reaching 8.59% in 2024 before decreasing to 2.45% in 2025. These shifts contributed to an overall increase in current assets to 49.49% in 2024, followed by a substantial decrease to 12.47% in 2025.
Long-Term Asset Trends
Property and equipment, net, and operating lease right-of-use assets, net, both exhibited a gradual decline as percentages of total assets throughout the period, ending at 1.44% and 1.46% respectively in 2025. Goodwill represented the largest portion of long-term assets, consistently above 39% until 2024, when it decreased to 26.38% and then increased substantially to 55.78% in 2025. Intangible assets, net, showed a similar pattern, increasing to 4.10% in 2022 before decreasing to 1.49% in 2024 and then rising dramatically to 26.29% in 2025. Deferred income taxes increased from 6.20% to 9.54% over the period, while other long-term assets remained relatively stable. The combined effect of these changes resulted in a decrease in long-term assets to 50.51% in 2024, followed by a significant increase to 87.53% in 2025.

The substantial changes observed in 2024 and 2025 suggest a potential strategic shift in asset allocation, with a notable movement from current assets to long-term assets, particularly goodwill and intangible assets. The large fluctuations in cash and cash equivalents warrant further investigation to understand the underlying reasons for these changes.