Stock Analysis on Net
Stock Analysis on Net

Synopsys Inc. (NASDAQ:SNPS) 

Analysis of Bad Debts

Microsoft Excel

Allowance for doubtful accounts receivable (bad debts) is a contra account which reduce the balance of the company gross accounts receivable. The relationship between the allowance and the balance in receivables should be relatively constant unless there is a change in the economy overall or a change in customer base.

Allowance for Doubtful Accounts Receivable

Microsoft Excel
Oct 31, 2024 Oct 31, 2023 Oct 31, 2022 Oct 31, 2021 Oct 31, 2020 Oct 31, 2019
Selected Financial Data (US$ in thousands)
Allowance for credit losses 51,008 42,722 29,553 30,680 28,564 9,046
Accounts receivable, gross 985,478 989,689 825,644 599,181 809,273 562,941
Financial Ratio
Allowance as a percentage of accounts receivable, gross1 5.18% 4.32% 3.58% 5.12% 3.53% 1.61%

Based on: 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).

1 2024 Calculation
Allowance as a percentage of accounts receivable, gross = 100 × Allowance for credit losses ÷ Accounts receivable, gross
= 100 × 51,008 ÷ 985,478 = 5.18%

Financial ratio Description The company
Allowance as a percentage of accounts receivable, gross Allowance for doubtful accounts divided by the gross accounts receivable. Synopsys Inc. allowance as a percentage of accounts receivable, gross increased from 2022 to 2023 and from 2023 to 2024.