Balance Sheet: Assets
The balance sheet provides creditors, investors, and analysts with information on company resources (assets) and its sources of capital (its equity and liabilities). It normally also provides information about the future earnings capacity of a company assets as well as an indication of cash flows that may come from receivables and inventories.
Assets are resources controlled by the company as a result of past events and from which future economic benefits are expected to flow to the entity.
Synopsys Inc., consolidated balance sheet: assets
US$ in thousands
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).
The analysis of the annual financial data reveals several significant trends and fluctuations across key balance sheet components.
- Cash and Cash Equivalents
- There is a marked increase in cash and cash equivalents from 2019 through 2024, with a particularly sharp rise in the latest year, reaching over US$3.8 billion as of October 31, 2024. This suggests improving liquidity and a strong cash position.
- Short-term Investments
- Short-term investments start being recorded from 2021 onwards, maintaining relatively stable values around US$147 million to US$153 million, indicating a consistent allocation of liquid resources towards short-term financial instruments.
- Cash, Cash Equivalents, and Short-term Investments
- Combining cash and short-term investments results in a steadily increasing amount, culminating in approximately US$4.05 billion by 2024. This reflects enhanced availability of liquid assets over the period.
- Accounts Receivable, Net
- Accounts receivable exhibit fluctuations: after an increase in 2020, there is a drop in 2021, followed by a rise again in 2022 and 2023 before a slight decline in 2024. These variations might indicate changes in sales cycle, credit terms, or collection efficiency.
- Inventories
- Inventories have steadily increased from about US$141 million in 2019 to US$362 million in 2024. The growth indicates accumulation of stock, potentially to support increased sales or preparation for future demand.
- Prepaid and Other Current Assets
- This category shows a substantial increase, notably doubling from approximately US$567 million in 2023 to over US$1.12 billion in 2024, suggesting advance payments or other prepaid expenses have grown considerably, impacting working capital management.
- Current Assets
- Current assets steadily increased over the years, more than tripling from 2019 to 2024. The significant jump in 2024 highlights overall strengthening of short-term asset holdings.
- Property and Equipment, Net
- This asset class demonstrates moderate growth, rising from about US$430 million in 2019 to approximately US$563 million in 2024, indicating ongoing capital expenditure and asset base expansion at a moderate pace.
- Operating Lease Right-of-Use Assets, Net
- Recorded from 2020 onwards, this asset category shows a gradual increase until 2022, followed by slight declines in subsequent years, reflecting leasing activities and possible lease terminations or renegotiations.
- Goodwill
- Goodwill consistently increased from 2019 through 2023, peaking at about US$4.07 billion, before declining significantly to approximately US$3.45 billion in 2024. This drop could signal impairment losses or revaluation related to acquisitions.
- Intangible Assets, Net
- Intangible assets fluctuate, with an increase in 2022 followed by a substantial decrease by 2024. The reduction to approximately US$195 million in 2024 may indicate amortization or impairment impacting these assets.
- Deferred Income Taxes
- Deferred income taxes steadily increased throughout the period, more than tripling from 2019 to 2024. This consistent growth points to increasing tax timing differences that the company expects to recover or pay in the future.
- Deferred Compensation Plan Assets
- Deferred compensation plan assets exhibit gradual growth, indicating growing commitments or accruals related to employee compensation.
- Capitalized Commission, Net
- Starting being reported in 2021, capitalized commissions show a slight decline over time, suggesting either changes in sales costs or capitalizing practices around commissions.
- Other and Other Long-Term Assets
- Both categories show modest increases, with "Other long-term assets" rising more consistently. These increments contribute to the overall asset growth.
- Long-Term Assets
- Long-term assets grew steadily from 2019 to 2023 but slightly declined in 2024. This suggests ongoing investment in long-term holdings but potentially some disposals or impairments in the latest year.
- Total Assets
- The total asset base shows a strong upward trend, nearly doubling from about US$6.4 billion in 2019 to over US$13 billion in 2024. The most notable increase occurs in the last year, driven primarily by cash, prepaid assets, and current assets expansion.
Overall, the financial data indicates robust growth in asset size, enhanced liquidity, and dynamic changes within goodwill and intangible assets, pointing toward active asset management, acquisitions, and evolving operational needs over the period analyzed.