Synopsys Inc. (NASDAQ:SNPS)

Debt to Equity

The debt to equity ratio exhibited a declining trend from 0.14 in January 2019 to 0 in early 2022, maintaining a level close to 0 through early 2024. However, a sharp increase to 1.01 is observed in the final period of January 2025, indicating a significant rise in debt relative to equity.

Debt to Equity (Including Operating Lease Liability)

This ratio shows a gradual decrease from 0.14 in January 2019 to 0.07 in April 2025. The inclusion of operating lease liabilities results in consistently higher values compared to the basic debt to equity ratio. The trend is generally stable with a slight downward movement until it spikes to 1.08 in the latest period.

Debt to Capital

The debt to capital ratio also demonstrates a downward trajectory, falling from 0.13 in early 2019 to zero by early 2022 and remaining there until early 2024. In the final date range, January 2025, the ratio increases sharply to 0.5, paralleling the pattern seen in the debt to equity ratio.

Debt to Capital (Including Operating Lease Liability)

With operating lease liabilities included, the debt to capital ratio decreases moderately from 0.13 in January 2019 to 0.07 in April 2025. This steadier decline and lower values than the non-included counterpart reflect the impact of lease obligations on capital structure. The value rises notably to 0.52 in the last period, mirroring other debt-related metrics.

Debt to Assets

The debt to assets ratio follows a similar pattern, diminishing from 0.09 in early 2019 to zero by 2022 and stabilizing until early 2024. An increase to 0.42 is recorded in January 2025, indicating a greater proportion of debt in relation to assets at the last data point.

Debt to Assets (Including Operating Lease Liability)

This ratio decreases steadily from 0.09 in January 2019 to 0.05 in April 2025. The inclusion of lease liabilities results in consistently higher ratios compared to the standard debt to assets, underscoring the significance of lease obligations. A notable increase to 0.45 occurs in the final period.

Financial Leverage

Financial leverage ratios range between 1.40 and 1.74 during the majority of the periods, showing relative stability with minor fluctuations. However, a pronounced increase to 2.40 is observed in January 2025, suggesting higher leverage and potentially increased financial risk at that time.

Interest Coverage

Interest coverage data is largely missing except for the latest period, January 2025, where it stands at 15.86. This represents a strong ability to cover interest expenses, indicating sound earnings relative to debt servicing costs despite the increased leverage observed.

The financial data reveals several notable trends concerning debt, equity, and leverage ratios over the analyzed periods.

Total Debt

The total debt exhibited a significant declining trend from January 2019 to January 2025. Initially, the debt stood at approximately $542 million in early 2019 and decreased steadily, reaching lows around $15 million through the years 2022 to early 2025. However, a marked anomaly occurs in April 2025, where the total debt sharply spikes to over $10 billion, representing a sudden and substantial increase in the company's debt load.

Total Stockholders’ Equity

Throughout the period, stockholders’ equity exhibited a generally increasing trend. Starting at nearly $3.8 billion in January 2019, equity rose steadily across the quarters, reaching approximately $9.9 billion by January 2025. This growth indicates consistent accumulation or appreciation of equity capital over the observed timeframe.

Debt to Equity Ratio

The debt-to-equity ratio consistently decreased from 0.14 in January 2019 to essentially 0 from early 2022 through early 2025, reflecting a substantial reduction in leverage relative to equity. This trend aligns with the declining debt and increasing equity during most of the period. However, a dramatic shift occurs in April 2025, where the ratio jumps to 1.01, likely influenced by the concurrent spike in total debt while equity maintains its upward trajectory.

In summary, the company maintained a conservative leverage profile over most of the examined periods, progressively lowering debt while growing equity. The significant debt increase and corresponding ratio rise in April 2025 represent an outlier event, potentially indicating a major financing activity or restructuring that markedly altered the capital structure.

The data reveals distinct trends in the company's leverage and equity positions over the analyzed periods.

Total debt (including operating lease liability)

The total debt displays notable fluctuations, initially declining sharply from 541,870 thousand US$ in early 2019 to 137,707 thousand US$ by the fourth quarter of 2019. This is followed by a significant increase to 858,518 thousand US$ in the first quarter of 2020, after which a gradual decline occurs, reaching values around the mid-600,000s thousand US$ through the 2021 and 2022 periods. From 2023 to early 2025, the total debt remains relatively stable, fluctuating slightly in the high 600,000s range. However, an exceptional spike is observed in the last period (April 2025) where total debt abruptly rises to 10,742,251 thousand US$, representing a dramatic increase compared to all previous quarters.

Total stockholders’ equity

Stockholders’ equity follows a generally upward trajectory across the entire period. Starting at approximately 3,778,802 thousand US$, equity steadily increases quarter-over-quarter, with only minor fluctuations. The upward trend is sustained through 2019, 2020, and continues through to early 2025, when equity reaches 9,915,718 thousand US$. This consistent growth indicates ongoing value creation or capital accumulation within the equity base.

Debt to equity ratio (including operating lease liability)

The debt to equity ratio mirrors the movements in debt relative to equity. Early 2019 sees low ratios starting at 0.14, dipping to a low of 0.03 by late 2019. The ratio then spikes to 0.21 in early 2020 coinciding with the debt peak. Thereafter, it gradually declines and stabilizes around 0.10 to 0.12 through subsequent years up to late 2024. The exception occurs in the final period where the debt to equity ratio sharply increases to 1.08 alongside the debt surge, indicating a sudden and substantial shift in the company's capital structure with a much higher leverage position.

Overall, the company maintained a conservative leverage profile with growing equity from 2019 through late 2024, reflecting moderate debt usage and steady capital growth. The substantial debt and leverage spike in the last recorded quarter suggest a major financing event or liability recognition occurring at that time, significantly altering the financial leverage landscape.

The analysis of the data reveals several notable trends and patterns in the company’s debt and capital structure over the time periods presented.

Total debt

The total debt amount shows a significant decline from January 2019 through October 2022, dropping from 541,870 thousand US dollars to around 20,824 thousand US dollars. This indicates a consistent reduction in debt over nearly four years. In the subsequent quarters up to October 2024, the debt remains relatively stable within the range of approximately 15,599 to 18,078 thousand US dollars. However, in the final reported quarter of April 2025, there is a substantial spike in total debt to 10,050,643 thousand US dollars, indicating a dramatic increase that contrasts sharply with the prior downward trend.

Total capital

Total capital exhibits a general upward trajectory throughout the entire period. Starting at 4,320,672 thousand US dollars in January 2019, it shows steady growth with some fluctuations, reaching as high as 9,319,012 thousand US dollars by April 2025. The increases are consistent though the growth rate appears to accelerate in the later periods, particularly from January 2024 onward, reflecting a substantial expansion in capital resources.

Debt to capital ratio

The debt to capital ratio decreases markedly from 0.13 in January 2019 to nearly zero by October 2022, suggesting a significant reduction in leverage and increased capital strength. From early 2023 through late 2024, this ratio remains at zero, indicating minimal or no debt relative to capital. The ratio then rises sharply to 0.5 in April 2025, corresponding with the large increase in total debt noted in the same quarter. This sudden increase in leverage suggests a strategic or necessary change in the company’s capital structure, representing a greater reliance on debt financing relative to capital.

Overall, the data reflects a long-term trend of debt reduction accompanied by capital growth, leading to a strong capital position and low leverage for several years. This pattern is abruptly interrupted in the most recent quarter by a dramatic rise in both total debt and leverage, pointing to a significant shift in financial strategy or operational circumstances that would warrant further investigation.

The data reveals several notable trends relating to the company's leverage and capital structure over the specified periods.

Total Debt (including operating lease liability)

Over the initial periods from January 2019 to October 2019, total debt shows a significant decrease from 541,870 thousand USD to 137,707 thousand USD. Subsequently, from January 2020 through October 2020, debt remains relatively elevated but shows a gradual decline from 858,518 thousand USD to 663,491 thousand USD. Between January 2021 and October 2023, the debt level fluctuates within a narrow band mostly between approximately 650,000 to 690,000 thousand USD, suggesting a stable debt level during this timeframe. In the final periods of January 2024 through April 2025, there is a remarkable spike in reported debt, reaching 10,742,251 thousand USD by April 2025, indicating a potential one-time event or a major financing change.

Total Capital (including operating lease liability)

The total capital demonstrates a gradual upward trend with slight fluctuations over the course of the data. Starting at 4,320,672 thousand USD in January 2019, it generally increases through the years, reaching approximately 6,835,111 thousand USD by October 2023. Between January 2024 and April 2025, there is a noticeable surge in total capital, peaking at 20,657,969 thousand USD in April 2025. This significant increase parallels the rise observed in total debt in the same period, indicating substantial capital expansion, possibly from new equity issuance, debt, or asset revaluation.

Debt to Capital Ratio (including operating lease liability)

The debt to capital ratio initially drops sharply from 0.13 in January 2019 to 0.03 by October 2019, reflecting the reduction in debt relative to capital. A rise occurs around January 2020, increasing to 0.17, followed by a gradual decrease maintaining a range between 0.07 and 0.12 from April 2020 through October 2023. This indicates a stable capital structure with moderate leverage over this period. Notably, in January 2024 the ratio is 0.09, further decreasing slightly through April 2024 and July 2024 to 0.07 before abruptly increasing to 0.52 by April 2025. This sharp increase signals a significant increase in leverage, consistent with the large spikes in debt and capital observed during this final period.

In summary, the company's leverage decreased substantially in early 2019, stabilized at moderate levels from 2020 through 2023, and then sharply increased in early 2025. The total capital mirrored this pattern with steady growth and a pronounced rise at the end of the period. The jump in both total debt and total capital in 2024-2025 suggests a major change in financial structure, potentially due to new financing activities or strategic transactions. The debt-to-capital ratio's sharp increase at the end corroborates the heightened reliance on debt financing during that timeframe.

The financial data reveals several significant trends regarding the company's debt and asset levels over the observed periods.

Total Debt

Total debt exhibited a general declining trend from the beginning of the observed timeline through early 2025. Starting at approximately 542 million US dollars in January 2019, debt levels consistently decreased across the quarters, reaching a low around 14,000 US dollars by April 2025, except for the anomalous spike at the final data point in April 2025 where total debt surged dramatically to over 10 billion US dollars.

This spike represents an outlier compared to prior periods, indicating either a significant new borrowing, a data error, or a substantial change in accounting or financial strategy.

Total Assets

Total assets showed a steady increase over the same timeframe, rising from approximately 6.3 billion US dollars in January 2019 to around 13 billion US dollars by April 2025, with a large jump to over 23.7 billion US dollars in the final quarter.

The growth in total assets over time indicates consistent asset accumulation or appreciation, contributing to stronger overall financial positioning.

Debt to Assets Ratio

The debt to assets ratio declined sharply from 0.09 in January 2019 to essentially zero in many of the periods between January 2022 and January 2025. This indicates a substantial reduction in leverage relative to asset base, reflecting improved balance sheet strength and lower reliance on debt financing.

However, the final period’s ratio of 0.42 sharply contrasts this trend, coinciding with the dramatic rise in total debt and total assets. This sudden increase in leverage suggests a major financial event impacting the company's capital structure.

Overall, the data reflects a company progressively deleveraging while growing its asset base over multiple years, achieving a very low level of debt in relation to assets. The abrupt changes in the last quarter, with a dramatic rise in both debt and assets and a corresponding increase in leverage ratio, warrant further investigation to understand the underlying cause of this deviation from prior trends.

The analysis of the financial data reveals several noteworthy trends regarding the company's total debt, total assets, and debt-to-assets ratio over the periods from January 2019 to April 2025.

Total Debt (Including Operating Lease Liability)

The total debt fluctuated notably throughout the observed periods. Initially, debt was relatively moderate at approximately $542 million in January 2019, then significantly declined to around $138 million by October 2019. After this reduction, debt increased sharply to approximately $858 million by January 2020, followed by a gradual decline and stabilization around $650 to $690 million from 2020 through early 2024. Notably, there is an anomalous and large spike in debt in April 2025 to over $10.7 billion, indicating a substantial increase in liabilities during this last reported period.

Total Assets

Total assets demonstrated a generally upward trajectory over the timeframe. Starting near $6.3 billion in early 2019, the asset base steadily grew with some periods of accelerated increase, reaching approximately $13 billion by early 2025. The growth was consistent, with no evident large declines, indicating a strengthening asset base or expansion over time. The most significant growth appears in the later periods, particularly after 2023, where assets jumped sharply to over $23.7 billion by April 2025, coinciding with the period of increased debt.

Debt to Assets Ratio (Including Operating Lease Liability)

The debt to assets ratio initially decreased sharply from 0.09 in January 2019 to as low as 0.02 in mid-2019, reflecting a reduction in leverage during this phase. However, it increased again to approximately 0.12 by January 2020, balancing out to a persistent range between 0.05 and 0.08 over the subsequent years up to early 2024. This range indicates a moderate use of debt relative to assets during most of the periods. The ratio conspicuously rises to 0.45 in April 2025, which is significantly higher than previous periods, correlating with the sharp increase in total debt and assets, suggesting a sudden leverage increase.

In summary, the company maintained relatively stable asset growth with moderate fluctuations in debt through most periods, keeping leverage within a controlled range. However, the final reported quarter shows extraordinary increases in both total debt and assets, resulting in a marked increase in the debt-to-assets ratio. This abrupt change might indicate a major financing event or acquisition impacting the company's balance sheet structure in early 2025.

Total Assets

The total assets generally exhibited a growth trend over the analyzed period. Starting at approximately 6.34 billion US dollars in early 2019, the total assets showed a steady increase with minor fluctuations, reaching around 13.07 billion by early 2025. Notably, there was a significant jump in the final quarter reaching approximately 23.76 billion, indicating a marked change possibly due to an acquisition, revaluation, or a major investment.

Total Synopsys Stockholders’ Equity

The stockholders' equity followed a consistent upward trend overall. Beginning at about 3.78 billion US dollars in early 2019, it increased steadily with some small short-term declines, culminating near 9.92 billion by early 2025. The pattern suggests ongoing growth in retained earnings or additional equity infusion over the period examined. The equity growth parallels the asset growth, but with less volatility, indicating stable shareholder value increases.

Financial Leverage

The financial leverage ratio fluctuated moderately, typically ranging between 1.4 and 1.74 throughout the period, suggesting a relatively stable leverage position with variations reflecting financing decisions or changing debt levels relative to equity. A slight increase early in the timeframe was followed by a general gradual decline toward 1.4 in early 2025, implying a moderate reduction in leverage or improving equity relative to liabilities. However, a sharp spike to 2.4 occurred in the last quarter, coinciding with the large increase in total assets, which may indicate a significant leverage change, possibly tied to large liabilities or debt financing parallel to the asset increase.

The Earnings before Interest and Tax (EBIT) exhibited fluctuations over the observed periods, with notable variability across quarters. Initially, EBIT showed a mild downward trend from January 2019 through April 2020, declining from 147,055 thousand US dollars to 110,166 thousand US dollars. This was followed by a significant increase in July 2020, reaching 236,854 thousand US dollars. Afterward, the EBIT values demonstrated volatility but maintained generally higher levels compared to early 2019, peaking notably at 409,691 thousand US dollars in October 2023.

From January 2021 onward, EBIT mostly remained above 200,000 thousand US dollars, with certain quarters experiencing substantial increases, such as January 2022 at 327,243 thousand and April 2022 at 339,788 thousand. There was a decline in late 2022, dropping to 212,129 thousand in October 2022, followed again by increases in subsequent quarters, eventually achieving the highest recorded EBIT in the last available quarter, April 2025, at 490,527 thousand US dollars.

Interest expense data is sparse, with information only available for the most recent quarter in April 2025, recorded at 94,336 thousand US dollars. Correspondingly, the interest coverage ratio is reported only for this quarter at a value of 15.86, implying that the EBIT substantially exceeds interest obligations, suggesting a comfortable ability to cover interest expenses at this point in time.

Overall, the EBIT trend reflects periods of both growth and contraction, interspersed with notable increases in several quarters post mid-2020. The sharp rises in EBIT towards the latest periods indicate improved operational profitability, while the limited interest data limits comprehensive analysis of financing cost impact over the full timeline. The strong interest coverage ratio, where available, denotes healthy earnings in relation to interest expenses for the recent period reported.