Analysis of Long-term (Investment) Activity Ratios
Quarterly Data
Activity ratios measure how efficiently a company performs day-to-day tasks, such us the collection of receivables and management of inventory.
Long-term Activity Ratios (Summary)
Synopsys Inc., long-term (investment) activity ratios (quarterly data)
Based on: 10-K (reporting date: 2025-10-31), 10-Q (reporting date: 2025-07-31), 10-Q (reporting date: 2025-04-30), 10-Q (reporting date: 2025-01-31), 10-K (reporting date: 2024-10-31), 10-Q (reporting date: 2024-07-31), 10-Q (reporting date: 2024-04-30), 10-Q (reporting date: 2024-01-31), 10-K (reporting date: 2023-10-31), 10-Q (reporting date: 2023-07-31), 10-Q (reporting date: 2023-04-30), 10-Q (reporting date: 2023-01-31), 10-K (reporting date: 2022-10-31), 10-Q (reporting date: 2022-07-31), 10-Q (reporting date: 2022-04-30), 10-Q (reporting date: 2022-01-31), 10-K (reporting date: 2021-10-31), 10-Q (reporting date: 2021-07-31), 10-Q (reporting date: 2021-04-30), 10-Q (reporting date: 2021-01-31).
The investment activity ratios demonstrate varying trends over the observed period. Generally, net fixed asset turnover increased through much of the period, while total and equity turnover exhibited more complex patterns, including a significant decline in the most recent quarters.
- Net Fixed Asset Turnover
- The net fixed asset turnover ratio generally increased from 7.85 in January 2021 to a peak of 11.11 in January 2025. This indicates improving efficiency in utilizing fixed assets to generate revenue. However, a slight decrease is observed in the final two quarters, falling to 9.20 in July 2025 and 10.13 in October 2025. This could warrant further investigation.
- Net Fixed Asset Turnover (Including Operating Lease, Right-of-Use Asset)
- Similar to the standard net fixed asset turnover, this ratio also showed an upward trend from 4.03 in January 2021 to 5.56 in January 2025. The inclusion of operating lease and right-of-use assets results in lower turnover values compared to the standard calculation. A decline is also apparent in the last two quarters, decreasing to 4.62 in July 2025 and 5.04 in October 2025, mirroring the trend observed in the standard net fixed asset turnover.
- Total Asset Turnover
- The total asset turnover ratio remained relatively stable around 0.48 to 0.57 from January 2021 through October 2024. However, a substantial decrease is evident in the final quarters, dropping to 0.26 in January 2025 and further to 0.13 in July 2025, before a slight recovery to 0.15 in October 2025. This significant decline suggests a considerable decrease in the efficiency of utilizing all assets to generate revenue, and requires further scrutiny.
- Equity Turnover
- The equity turnover ratio exhibited an increasing trend from 0.78 in January 2021 to 0.95 in October 2023. Subsequently, the ratio decreased to 0.90 in January 2024, 0.85 in April 2024, and continued to decline sharply to 0.23 in July 2025 and 0.25 in October 2025. This substantial decrease indicates a reduced ability to generate revenue from shareholder equity, potentially signaling decreased profitability or increased equity base without corresponding revenue growth.
The recent declines in total asset turnover and equity turnover, particularly in the last four quarters, are noteworthy and suggest a potential shift in the company’s operational efficiency or asset utilization strategy. The consistent increase in net fixed asset turnover until recently contrasts with the declining trends in the other ratios, potentially indicating that while fixed asset utilization remains strong, overall asset and equity efficiency are diminishing.
Net Fixed Asset Turnover
Synopsys Inc., net fixed asset turnover calculation (quarterly data)
| Oct 31, 2025 | Jul 31, 2025 | Apr 30, 2025 | Jan 31, 2025 | Oct 31, 2024 | Jul 31, 2024 | Apr 30, 2024 | Jan 31, 2024 | Oct 31, 2023 | Jul 31, 2023 | Apr 30, 2023 | Jan 31, 2023 | Oct 31, 2022 | Jul 31, 2022 | Apr 30, 2022 | Jan 31, 2022 | Oct 31, 2021 | Jul 31, 2021 | Apr 30, 2021 | Jan 31, 2021 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||||||||||||||||||||||
| Revenue | 2,254,860) | 1,739,737) | 1,604,266) | 1,455,315) | 1,635,986) | 1,525,749) | 1,454,712) | 1,510,989) | 1,599,128) | 1,487,288) | 1,394,863) | 1,361,340) | 1,284,292) | 1,247,766) | 1,279,229) | 1,270,255) | 1,152,419) | 1,057,130) | 1,024,323) | 970,321) | ||||||
| Property and equipment, net | 696,693) | 699,688) | 571,982) | 546,406) | 563,006) | 571,408) | 566,832) | 567,038) | 557,261) | 535,973) | 546,439) | 516,925) | 483,300) | 486,872) | 491,641) | 477,521) | 472,398) | 470,129) | 478,975) | 486,604) | ||||||
| Long-term Activity Ratio | ||||||||||||||||||||||||||
| Net fixed asset turnover1 | 10.13 | 9.20 | 10.88 | 11.11 | 10.88 | 10.66 | 10.68 | 10.57 | 10.48 | 10.31 | 9.68 | 10.01 | 10.51 | 10.17 | 9.68 | 9.43 | 8.90 | 8.67 | 8.32 | 7.85 | ||||||
| Benchmarks | ||||||||||||||||||||||||||
| Net Fixed Asset Turnover, Competitors2 | ||||||||||||||||||||||||||
| Accenture PLC | 44.48 | 42.51 | 44.49 | 44.02 | 42.66 | 44.42 | 44.26 | 44.00 | 41.90 | 41.40 | 40.46 | 38.17 | 37.12 | 35.78 | 34.22 | 32.49 | 30.83 | 31.16 | 30.44 | 29.69 | ||||||
| Adobe Inc. | — | 12.15 | 11.96 | 11.64 | 11.11 | 10.64 | 10.38 | 10.03 | 9.56 | 9.28 | 9.07 | 9.15 | 9.23 | 9.25 | 9.33 | 9.48 | 9.44 | 9.27 | 9.15 | 8.94 | ||||||
| AppLovin Corp. | — | 39.72 | 38.49 | 29.76 | 29.34 | 24.23 | 23.38 | 20.96 | 18.94 | 29.68 | 24.97 | 24.52 | 35.87 | 40.76 | 46.80 | 44.17 | — | — | — | — | ||||||
| Cadence Design Systems Inc. | — | 10.54 | 10.56 | 10.45 | 10.13 | 9.70 | 9.26 | 9.42 | 10.14 | 10.33 | 10.27 | 9.87 | 9.59 | 9.86 | 10.37 | 10.15 | 9.77 | 9.81 | 9.57 | 9.18 | ||||||
| CrowdStrike Holdings Inc. | 5.01 | 5.01 | 5.42 | 5.23 | 4.93 | 4.90 | 4.71 | 4.67 | 4.55 | 4.73 | 4.79 | 5.17 | 5.57 | 5.31 | 5.27 | 5.22 | 5.24 | 4.69 | 4.27 | 4.05 | ||||||
| Datadog Inc. | — | 10.44 | 10.65 | 11.34 | 11.83 | 11.75 | 12.03 | 12.38 | 12.38 | 12.73 | 13.07 | 12.96 | 13.36 | 13.81 | 13.97 | 13.15 | 13.69 | 12.79 | 12.63 | 12.70 | ||||||
| International Business Machines Corp. | — | 11.18 | 10.78 | 10.94 | 10.95 | 11.15 | 11.14 | 11.10 | 11.25 | 11.39 | 11.12 | 11.34 | 11.35 | 11.75 | 11.31 | 10.50 | 10.07 | 6.68 | 6.93 | 7.33 | ||||||
| Intuit Inc. | 19.60 | 18.65 | 17.31 | 16.46 | 16.14 | 15.32 | 14.39 | 14.56 | 14.83 | 15.00 | 14.70 | 14.38 | 14.33 | 15.00 | 13.74 | 13.08 | 12.35 | 11.24 | 9.74 | 10.55 | ||||||
| Microsoft Corp. | 1.37 | 1.47 | 1.57 | 1.66 | 1.81 | 1.95 | 2.03 | 2.13 | 2.22 | 2.36 | 2.47 | 2.64 | 2.66 | 2.74 | 2.75 | 2.76 | 2.81 | 2.91 | 2.96 | 3.07 | ||||||
| Oracle Corp. | 1.32 | 1.74 | 2.08 | 2.33 | 2.46 | 2.75 | 2.87 | 2.89 | 2.93 | 2.93 | 3.21 | 3.60 | 4.37 | 4.86 | 5.16 | 5.37 | 5.74 | 5.82 | 5.95 | 6.13 | ||||||
| Palantir Technologies Inc. | — | 85.24 | 79.05 | 78.53 | 72.29 | 65.59 | 57.01 | 49.76 | 46.59 | 42.39 | 37.80 | 31.45 | 27.55 | 31.65 | 36.61 | 39.34 | — | — | — | — | ||||||
| Palo Alto Networks Inc. | 23.81 | 24.18 | 23.93 | 22.96 | 22.23 | 22.24 | 21.37 | 20.44 | 19.44 | 18.99 | 17.86 | 16.45 | 15.38 | 14.54 | 13.39 | 14.05 | 13.37 | 12.36 | 11.44 | 10.60 | ||||||
| Salesforce Inc. | 11.71 | 10.89 | 10.19 | 10.19 | 9.45 | 8.92 | 8.53 | 8.71 | 8.47 | 8.62 | 8.69 | 9.74 | 9.41 | 9.03 | 8.68 | 8.98 | 8.64 | 7.91 | 7.67 | 7.24 | ||||||
| ServiceNow Inc. | — | 5.96 | 6.07 | 6.08 | 6.23 | 6.09 | 6.20 | 6.54 | 6.61 | 7.07 | 6.98 | 6.82 | 6.88 | 7.57 | 7.54 | 7.84 | 7.70 | 7.47 | 7.06 | 6.97 | ||||||
| Workday Inc. | 6.82 | 6.46 | 6.25 | 6.11 | 5.88 | 5.79 | 5.50 | 5.31 | 5.17 | 4.88 | 4.60 | 4.55 | 4.58 | 4.37 | 4.12 | 3.87 | 4.44 | 4.26 | 4.17 | 4.08 | ||||||
Based on: 10-K (reporting date: 2025-10-31), 10-Q (reporting date: 2025-07-31), 10-Q (reporting date: 2025-04-30), 10-Q (reporting date: 2025-01-31), 10-K (reporting date: 2024-10-31), 10-Q (reporting date: 2024-07-31), 10-Q (reporting date: 2024-04-30), 10-Q (reporting date: 2024-01-31), 10-K (reporting date: 2023-10-31), 10-Q (reporting date: 2023-07-31), 10-Q (reporting date: 2023-04-30), 10-Q (reporting date: 2023-01-31), 10-K (reporting date: 2022-10-31), 10-Q (reporting date: 2022-07-31), 10-Q (reporting date: 2022-04-30), 10-Q (reporting date: 2022-01-31), 10-K (reporting date: 2021-10-31), 10-Q (reporting date: 2021-07-31), 10-Q (reporting date: 2021-04-30), 10-Q (reporting date: 2021-01-31).
1 Q4 2025 Calculation
Net fixed asset turnover
= (RevenueQ4 2025
+ RevenueQ3 2025
+ RevenueQ2 2025
+ RevenueQ1 2025)
÷ Property and equipment, net
= (2,254,860 + 1,739,737 + 1,604,266 + 1,455,315)
÷ 696,693 = 10.13
2 Click competitor name to see calculations.
The net fixed asset turnover ratio demonstrates a generally increasing trend over the observed period, with some fluctuations. This ratio, which measures how efficiently a company utilizes its fixed assets to generate revenue, has shown considerable improvement from early 2021 through late 2024, before exhibiting some volatility in the most recent periods.
- Overall Trend
- From January 2021 to October 2024, the ratio consistently increased, moving from 7.85 to 10.88. This indicates a growing ability to generate sales from the existing fixed asset base. The rate of increase was particularly strong between July 2021 and October 2024.
- Short-Term Fluctuations
- While the overall trend is positive, there are noticeable short-term variations. A slight dip is observed from October 2022 (10.51) to January 2023 (10.01). More recently, a more significant decrease is apparent from October 2024 (10.88) to January 2025 (11.11) and then to April 2025 (10.88). The ratio then decreased substantially to 9.20 in July 2025, before a slight recovery to 10.13 in October 2025.
- Revenue and Asset Relationship
- The increase in the net fixed asset turnover ratio largely corresponds with increases in revenue. However, the fluctuations suggest that changes in property and equipment, net, also play a role. The ratio is impacted by both the level of revenue generated and the investment in fixed assets. The recent decline in the ratio, despite continued revenue growth, suggests a more rapid increase in net property and equipment.
- Recent Performance
- The most recent quarterly values (July and October 2025) show a decrease from the peak observed in late 2024. While still at a relatively high level compared to earlier periods, this recent trend warrants further investigation to determine if it represents a temporary fluctuation or the beginning of a more sustained decline in asset efficiency.
In summary, the company has generally improved its efficiency in utilizing fixed assets to generate revenue. However, recent performance indicates a potential shift in this trend, requiring continued monitoring.
Net Fixed Asset Turnover (including Operating Lease, Right-of-Use Asset)
Synopsys Inc., net fixed asset turnover (including operating lease, right-of-use asset) calculation (quarterly data)
| Oct 31, 2025 | Jul 31, 2025 | Apr 30, 2025 | Jan 31, 2025 | Oct 31, 2024 | Jul 31, 2024 | Apr 30, 2024 | Jan 31, 2024 | Oct 31, 2023 | Jul 31, 2023 | Apr 30, 2023 | Jan 31, 2023 | Oct 31, 2022 | Jul 31, 2022 | Apr 30, 2022 | Jan 31, 2022 | Oct 31, 2021 | Jul 31, 2021 | Apr 30, 2021 | Jan 31, 2021 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||||||||||||||||||||||
| Revenue | 2,254,860) | 1,739,737) | 1,604,266) | 1,455,315) | 1,635,986) | 1,525,749) | 1,454,712) | 1,510,989) | 1,599,128) | 1,487,288) | 1,394,863) | 1,361,340) | 1,284,292) | 1,247,766) | 1,279,229) | 1,270,255) | 1,152,419) | 1,057,130) | 1,024,323) | 970,321) | ||||||
| Property and equipment, net | 696,693) | 699,688) | 571,982) | 546,406) | 563,006) | 571,408) | 566,832) | 567,038) | 557,261) | 535,973) | 546,439) | 516,925) | 483,300) | 486,872) | 491,641) | 477,521) | 472,398) | 470,129) | 478,975) | 486,604) | ||||||
| Operating lease right-of-use assets, net | 702,008) | 693,368) | 585,704) | 545,867) | 565,917) | 556,593) | 528,011) | 551,452) | 568,829) | 574,727) | 576,727) | 586,892) | 559,090) | 574,501) | 585,108) | 481,526) | 493,251) | 493,899) | 505,225) | 462,136) | ||||||
| Property and equipment, net (including operating lease, right-of-use asset) | 1,398,701) | 1,393,056) | 1,157,686) | 1,092,273) | 1,128,923) | 1,128,001) | 1,094,843) | 1,118,490) | 1,126,090) | 1,110,700) | 1,123,166) | 1,103,817) | 1,042,390) | 1,061,373) | 1,076,749) | 959,047) | 965,649) | 964,028) | 984,200) | 948,740) | ||||||
| Long-term Activity Ratio | ||||||||||||||||||||||||||
| Net fixed asset turnover (including operating lease, right-of-use asset)1 | 5.04 | 4.62 | 5.37 | 5.56 | 5.43 | 5.40 | 5.53 | 5.36 | 5.19 | 4.98 | 4.71 | 4.69 | 4.87 | 4.66 | 4.42 | 4.70 | 4.35 | 4.23 | 4.05 | 4.03 | ||||||
| Benchmarks | ||||||||||||||||||||||||||
| Net Fixed Asset Turnover (including Operating Lease, Right-of-Use Asset), Competitors2 | ||||||||||||||||||||||||||
| Accenture PLC | 16.18 | 15.85 | 16.37 | 15.89 | 15.17 | 15.96 | 15.77 | 15.97 | 15.38 | 14.85 | 14.14 | 13.47 | 13.17 | 12.30 | 11.56 | 11.17 | 10.48 | 10.27 | 9.83 | 9.71 | ||||||
| Adobe Inc. | — | 10.47 | 10.52 | 10.21 | 9.70 | 8.96 | 8.69 | 8.47 | 8.13 | 7.84 | 7.61 | 7.60 | 7.61 | 7.57 | 7.52 | 7.55 | 7.46 | 7.26 | 7.08 | 6.82 | ||||||
| CrowdStrike Holdings Inc. | 4.76 | 4.72 | 5.06 | 4.86 | 4.57 | 4.51 | 4.35 | 4.26 | 4.21 | 4.47 | 4.46 | 4.74 | 4.97 | 4.66 | 4.54 | 4.38 | 4.30 | 3.79 | 3.38 | 3.22 | ||||||
| Datadog Inc. | — | 6.10 | 6.05 | 6.26 | 6.72 | 6.60 | 6.54 | 6.35 | 7.13 | 7.18 | 7.10 | 7.69 | 7.87 | 7.67 | 8.44 | 7.82 | 7.54 | 6.73 | 6.96 | 6.33 | ||||||
| International Business Machines Corp. | — | 7.21 | 6.92 | 6.93 | 7.03 | 6.98 | 7.14 | 7.06 | 7.09 | 7.21 | 7.48 | 7.45 | 7.37 | 7.67 | 7.35 | 6.73 | 6.43 | 4.56 | 4.73 | 4.97 | ||||||
| Intuit Inc. | 12.54 | 11.85 | 11.37 | 10.73 | 11.47 | 10.83 | 10.11 | 10.03 | 9.99 | 9.89 | 9.51 | 9.11 | 8.86 | 10.03 | 8.99 | 8.64 | 8.30 | 7.66 | 6.52 | 8.04 | ||||||
| Microsoft Corp. | 1.23 | 1.30 | 1.38 | 1.47 | 1.59 | 1.71 | 1.77 | 1.85 | 1.93 | 2.03 | 2.12 | 2.25 | 2.26 | 2.31 | 2.32 | 2.34 | 2.37 | 2.44 | 2.47 | 2.58 | ||||||
| Palantir Technologies Inc. | — | 15.58 | 13.93 | 12.51 | 11.92 | 10.50 | 9.65 | 10.58 | 9.65 | 8.84 | 8.06 | 7.27 | 7.07 | 7.12 | 6.73 | 6.17 | — | — | — | — | ||||||
| Palo Alto Networks Inc. | 12.56 | 12.25 | 11.72 | 11.05 | 10.75 | 10.82 | 10.63 | 11.50 | 11.16 | 11.00 | 10.33 | 9.47 | 9.17 | 8.68 | 8.08 | 7.91 | 7.32 | 6.86 | 6.49 | 6.08 | ||||||
| Salesforce Inc. | 7.03 | 6.66 | 6.39 | 6.20 | 5.76 | 5.37 | 5.13 | 5.08 | 4.76 | 4.72 | 4.80 | 4.83 | 4.65 | 4.40 | 4.03 | 4.02 | 3.75 | 3.67 | 3.52 | 3.31 | ||||||
| ServiceNow Inc. | — | 4.32 | 4.30 | 4.26 | 4.47 | 4.40 | 4.36 | 4.41 | 4.33 | 4.46 | 4.44 | 4.24 | 4.18 | 4.63 | 4.46 | 4.53 | 4.34 | 4.11 | 4.32 | 4.21 | ||||||
| Workday Inc. | 5.36 | 5.10 | 4.92 | 4.85 | 4.77 | 4.74 | 4.53 | 4.39 | 4.29 | 4.00 | 3.73 | 3.75 | 3.75 | 3.52 | 3.31 | 3.11 | 3.11 | 2.99 | 3.12 | 3.06 | ||||||
Based on: 10-K (reporting date: 2025-10-31), 10-Q (reporting date: 2025-07-31), 10-Q (reporting date: 2025-04-30), 10-Q (reporting date: 2025-01-31), 10-K (reporting date: 2024-10-31), 10-Q (reporting date: 2024-07-31), 10-Q (reporting date: 2024-04-30), 10-Q (reporting date: 2024-01-31), 10-K (reporting date: 2023-10-31), 10-Q (reporting date: 2023-07-31), 10-Q (reporting date: 2023-04-30), 10-Q (reporting date: 2023-01-31), 10-K (reporting date: 2022-10-31), 10-Q (reporting date: 2022-07-31), 10-Q (reporting date: 2022-04-30), 10-Q (reporting date: 2022-01-31), 10-K (reporting date: 2021-10-31), 10-Q (reporting date: 2021-07-31), 10-Q (reporting date: 2021-04-30), 10-Q (reporting date: 2021-01-31).
1 Q4 2025 Calculation
Net fixed asset turnover (including operating lease, right-of-use asset)
= (RevenueQ4 2025
+ RevenueQ3 2025
+ RevenueQ2 2025
+ RevenueQ1 2025)
÷ Property and equipment, net (including operating lease, right-of-use asset)
= (2,254,860 + 1,739,737 + 1,604,266 + 1,455,315)
÷ 1,398,701 = 5.04
2 Click competitor name to see calculations.
The net fixed asset turnover ratio, calculated using property and equipment net of accumulated depreciation and including operating lease and right-of-use assets, demonstrates a generally increasing trend over the observed period. This indicates improving efficiency in utilizing fixed assets to generate revenue.
- Overall Trend
- From January 31, 2021, to October 31, 2023, the ratio consistently increased, moving from 4.03 to 5.19. This suggests a strengthening relationship between revenue and the investment in fixed assets. However, the ratio experienced some fluctuation in later periods.
- Initial Phase (2021-2022)
- The period between January 31, 2021, and January 31, 2022, shows a steady increase, rising from 4.03 to 4.70. This initial growth suggests effective asset management and revenue generation during this timeframe. A slight dip to 4.42 is observed in April 2022, but the ratio quickly recovers.
- Peak and Subsequent Fluctuations (2022-2024)
- The ratio peaked at 5.53 in April 2024. Prior to this, a consistent upward trajectory was maintained, reaching 4.87 by October 2022 and continuing to 5.36 by January 2023. Following the peak, the ratio decreased to 5.40 in July 2024 and 5.43 in October 2024, indicating a potential stabilization or slight decrease in asset utilization efficiency.
- Recent Performance (2024-2025)
- The most recent data reveals a more pronounced decline, with the ratio falling to 5.56 in January 2025, then to 5.37 in April 2025, and finally to 4.62 in July 2025. The latest reported value, 5.04 in October 2025, suggests a partial recovery, but remains below the peak observed in April 2024. This recent downward trend warrants further investigation to determine the underlying causes, such as potential increases in fixed assets without corresponding revenue growth, or changes in operational efficiency.
In summary, while the net fixed asset turnover ratio generally improved over much of the analyzed period, recent quarters indicate a potential shift in this trend. Continued monitoring is recommended to assess whether this represents a temporary fluctuation or a more sustained change in asset utilization.
Total Asset Turnover
Synopsys Inc., total asset turnover calculation (quarterly data)
| Oct 31, 2025 | Jul 31, 2025 | Apr 30, 2025 | Jan 31, 2025 | Oct 31, 2024 | Jul 31, 2024 | Apr 30, 2024 | Jan 31, 2024 | Oct 31, 2023 | Jul 31, 2023 | Apr 30, 2023 | Jan 31, 2023 | Oct 31, 2022 | Jul 31, 2022 | Apr 30, 2022 | Jan 31, 2022 | Oct 31, 2021 | Jul 31, 2021 | Apr 30, 2021 | Jan 31, 2021 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||||||||||||||||||||||
| Revenue | 2,254,860) | 1,739,737) | 1,604,266) | 1,455,315) | 1,635,986) | 1,525,749) | 1,454,712) | 1,510,989) | 1,599,128) | 1,487,288) | 1,394,863) | 1,361,340) | 1,284,292) | 1,247,766) | 1,279,229) | 1,270,255) | 1,152,419) | 1,057,130) | 1,024,323) | 970,321) | ||||||
| Total assets | 48,224,461) | 48,230,256) | 23,756,517) | 13,041,089) | 13,073,561) | 11,648,684) | 11,011,837) | 10,558,259) | 10,333,131) | 9,923,231) | 9,790,732) | 9,565,624) | 9,418,087) | 9,329,547) | 9,210,381) | 8,901,346) | 8,752,260) | 8,485,906) | 8,339,565) | 8,012,838) | ||||||
| Long-term Activity Ratio | ||||||||||||||||||||||||||
| Total asset turnover1 | 0.15 | 0.13 | 0.26 | 0.47 | 0.47 | 0.52 | 0.55 | 0.57 | 0.57 | 0.56 | 0.54 | 0.54 | 0.54 | 0.53 | 0.52 | 0.51 | 0.48 | 0.48 | 0.48 | 0.48 | ||||||
| Benchmarks | ||||||||||||||||||||||||||
| Total Asset Turnover, Competitors2 | ||||||||||||||||||||||||||
| Accenture PLC | 1.07 | 1.08 | 1.12 | 1.11 | 1.16 | 1.19 | 1.26 | 1.25 | 1.25 | 1.27 | 1.32 | 1.32 | 1.30 | 1.29 | 1.28 | 1.23 | 1.17 | 1.14 | 1.14 | 1.17 | ||||||
| Adobe Inc. | — | 0.81 | 0.80 | 0.74 | 0.71 | 0.70 | 0.68 | 0.69 | 0.65 | 0.65 | 0.66 | 0.67 | 0.65 | 0.64 | 0.63 | 0.62 | 0.58 | 0.58 | 0.56 | 0.55 | ||||||
| AppLovin Corp. | — | 0.82 | 0.84 | 0.84 | 0.80 | 0.79 | 0.75 | 0.69 | 0.61 | 0.61 | 0.53 | 0.49 | 0.48 | 0.50 | 0.49 | 0.46 | — | — | — | — | ||||||
| Cadence Design Systems Inc. | — | 0.54 | 0.54 | 0.54 | 0.52 | 0.47 | 0.58 | 0.71 | 0.72 | 0.72 | 0.74 | 0.71 | 0.69 | 0.69 | 0.75 | 0.72 | 0.68 | 0.71 | 0.70 | 0.70 | ||||||
| CrowdStrike Holdings Inc. | 0.45 | 0.48 | 0.49 | 0.48 | 0.46 | 0.49 | 0.48 | 0.48 | 0.45 | 0.46 | 0.44 | 0.43 | 0.40 | 0.39 | 0.36 | 0.35 | 0.32 | 0.44 | 0.40 | 0.37 | ||||||
| Datadog Inc. | — | 0.53 | 0.52 | 0.47 | 0.46 | 0.55 | 0.54 | 0.55 | 0.54 | 0.57 | 0.57 | 0.57 | 0.56 | 0.55 | 0.51 | 0.47 | 0.43 | 0.40 | 0.37 | 0.34 | ||||||
| International Business Machines Corp. | — | 0.45 | 0.43 | 0.43 | 0.46 | 0.47 | 0.47 | 0.45 | 0.46 | 0.47 | 0.46 | 0.45 | 0.48 | 0.48 | 0.47 | 0.44 | 0.43 | 0.42 | 0.44 | 0.47 | ||||||
| Intuit Inc. | 0.51 | 0.50 | 0.54 | 0.50 | 0.51 | 0.50 | 0.51 | 0.52 | 0.52 | 0.49 | 0.50 | 0.49 | 0.46 | 0.45 | 0.43 | 0.69 | 0.62 | 0.56 | 0.53 | 0.81 | ||||||
| Microsoft Corp. | 0.46 | 0.48 | 0.49 | 0.49 | 0.48 | 0.49 | 0.48 | 0.49 | 0.51 | 0.55 | 0.56 | 0.56 | 0.54 | 0.56 | 0.54 | 0.53 | 0.50 | 0.52 | 0.50 | 0.49 | ||||||
| Oracle Corp. | 0.34 | 0.35 | 0.37 | 0.37 | 0.38 | 0.38 | 0.38 | 0.37 | 0.37 | 0.36 | 0.36 | 0.34 | 0.39 | 0.39 | 0.39 | 0.33 | 0.31 | 0.34 | 0.36 | 0.35 | ||||||
| Palantir Technologies Inc. | — | 0.48 | 0.47 | 0.46 | 0.45 | 0.46 | 0.48 | 0.49 | 0.49 | 0.51 | 0.51 | 0.54 | 0.55 | 0.55 | 0.53 | 0.50 | — | — | — | — | ||||||
| Palo Alto Networks Inc. | 0.39 | 0.40 | 0.41 | 0.41 | 0.40 | 0.43 | 0.41 | 0.49 | 0.48 | 0.46 | 0.47 | 0.46 | 0.45 | 0.47 | 0.47 | 0.44 | 0.42 | 0.42 | 0.40 | 0.41 | ||||||
| Salesforce Inc. | 0.37 | 0.41 | 0.40 | 0.37 | 0.35 | 0.37 | 0.36 | 0.34 | 0.32 | 0.33 | 0.31 | 0.30 | 0.28 | 0.29 | 0.27 | 0.34 | 0.32 | 0.34 | 0.34 | 0.34 | ||||||
| ServiceNow Inc. | — | 0.58 | 0.55 | 0.55 | 0.54 | 0.57 | 0.55 | 0.54 | 0.52 | 0.56 | 0.54 | 0.56 | 0.54 | 0.62 | 0.59 | 0.57 | 0.55 | 0.58 | 0.56 | 0.55 | ||||||
| Workday Inc. | 0.47 | 0.50 | 0.48 | 0.47 | 0.44 | 0.50 | 0.49 | 0.49 | 0.46 | 0.48 | 0.43 | 0.42 | 0.49 | 0.52 | 0.51 | 0.52 | 0.50 | 0.53 | 0.53 | 0.53 | ||||||
Based on: 10-K (reporting date: 2025-10-31), 10-Q (reporting date: 2025-07-31), 10-Q (reporting date: 2025-04-30), 10-Q (reporting date: 2025-01-31), 10-K (reporting date: 2024-10-31), 10-Q (reporting date: 2024-07-31), 10-Q (reporting date: 2024-04-30), 10-Q (reporting date: 2024-01-31), 10-K (reporting date: 2023-10-31), 10-Q (reporting date: 2023-07-31), 10-Q (reporting date: 2023-04-30), 10-Q (reporting date: 2023-01-31), 10-K (reporting date: 2022-10-31), 10-Q (reporting date: 2022-07-31), 10-Q (reporting date: 2022-04-30), 10-Q (reporting date: 2022-01-31), 10-K (reporting date: 2021-10-31), 10-Q (reporting date: 2021-07-31), 10-Q (reporting date: 2021-04-30), 10-Q (reporting date: 2021-01-31).
1 Q4 2025 Calculation
Total asset turnover
= (RevenueQ4 2025
+ RevenueQ3 2025
+ RevenueQ2 2025
+ RevenueQ1 2025)
÷ Total assets
= (2,254,860 + 1,739,737 + 1,604,266 + 1,455,315)
÷ 48,224,461 = 0.15
2 Click competitor name to see calculations.
The total asset turnover ratio exhibits a generally increasing trend from January 2021 through October 2023, followed by a significant decline in the subsequent periods. Initial values hovered around 0.48 for the first four quarters of 2021. A gradual increase was then observed, reaching 0.57 by October 2023. However, beginning with January 2024, the ratio began to decrease substantially, falling to 0.47 by October 2024, and continuing to decline to 0.13 by October 2025.
- Overall Trend
- The ratio demonstrates a clear two-phase pattern. The first phase, spanning from January 2021 to October 2023, shows improving efficiency in asset utilization. The second phase, from January 2024 to October 2025, indicates a marked decrease in efficiency, suggesting the company generates less revenue for each dollar of assets it holds.
- Growth Phase (Jan 2021 - Oct 2023)
- During this period, the total asset turnover ratio increased from 0.48 to 0.57. This suggests the company became more effective at utilizing its assets to generate sales. The incremental increases, while not dramatic, indicate consistent improvement in operational efficiency. The highest value of 0.57 in October 2023 represents the peak efficiency within the observed timeframe.
- Decline Phase (Jan 2024 - Oct 2025)
- The ratio experienced a sharp decline starting in January 2024, dropping from 0.57 to 0.13 by October 2025. This substantial decrease warrants further investigation. Potential contributing factors could include a significant increase in total assets without a corresponding increase in revenue, a decrease in revenue, or a combination of both. The ratio’s fall to 0.13 in October 2025 represents a considerable reduction in asset utilization efficiency.
- Revenue and Asset Relationship
- The data reveals a strong correlation between revenue growth and the increasing asset turnover ratio during the initial phase. However, the subsequent decline in the ratio, despite continued revenue growth in some quarters, suggests that asset growth outpaced revenue generation. The dramatic increase in total assets in the later periods, particularly evident from July 2024 onwards, appears to be a primary driver of the declining ratio.
In conclusion, the observed trend indicates a shift in the company’s asset utilization efficiency. While initially demonstrating improvement, the latter portion of the period is characterized by a significant decline, potentially signaling a need to reassess asset management strategies and investment decisions.
Equity Turnover
Synopsys Inc., equity turnover calculation (quarterly data)
| Oct 31, 2025 | Jul 31, 2025 | Apr 30, 2025 | Jan 31, 2025 | Oct 31, 2024 | Jul 31, 2024 | Apr 30, 2024 | Jan 31, 2024 | Oct 31, 2023 | Jul 31, 2023 | Apr 30, 2023 | Jan 31, 2023 | Oct 31, 2022 | Jul 31, 2022 | Apr 30, 2022 | Jan 31, 2022 | Oct 31, 2021 | Jul 31, 2021 | Apr 30, 2021 | Jan 31, 2021 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||||||||||||||||||||||
| Revenue | 2,254,860) | 1,739,737) | 1,604,266) | 1,455,315) | 1,635,986) | 1,525,749) | 1,454,712) | 1,510,989) | 1,599,128) | 1,487,288) | 1,394,863) | 1,361,340) | 1,284,292) | 1,247,766) | 1,279,229) | 1,270,255) | 1,152,419) | 1,057,130) | 1,024,323) | 970,321) | ||||||
| Total Synopsys stockholders’ equity | 28,327,602) | 27,614,531) | 9,915,718) | 9,304,792) | 8,990,702) | 7,709,396) | 7,153,160) | 6,670,984) | 6,147,308) | 5,958,555) | 5,831,859) | 5,636,754) | 5,515,725) | 5,604,026) | 5,564,311) | 5,386,773) | 5,295,137) | 5,151,020) | 5,088,135) | 4,882,252) | ||||||
| Long-term Activity Ratio | ||||||||||||||||||||||||||
| Equity turnover1 | 0.25 | 0.23 | 0.63 | 0.65 | 0.68 | 0.79 | 0.85 | 0.90 | 0.95 | 0.93 | 0.91 | 0.92 | 0.92 | 0.88 | 0.86 | 0.84 | 0.79 | 0.79 | 0.78 | 0.78 | ||||||
| Benchmarks | ||||||||||||||||||||||||||
| Equity Turnover, Competitors2 | ||||||||||||||||||||||||||
| Accenture PLC | 2.23 | 2.24 | 2.30 | 2.27 | 2.29 | 2.32 | 2.38 | 2.42 | 2.50 | 2.51 | 2.66 | 2.72 | 2.79 | 2.79 | 2.76 | 2.64 | 2.59 | 2.48 | 2.49 | 2.50 | ||||||
| Adobe Inc. | — | 1.97 | 1.97 | 1.68 | 1.52 | 1.44 | 1.38 | 1.29 | 1.18 | 1.20 | 1.24 | 1.27 | 1.25 | 1.20 | 1.19 | 1.17 | 1.07 | 1.05 | 1.04 | 1.01 | ||||||
| AppLovin Corp. | — | 3.52 | 4.27 | 8.36 | 4.32 | 4.57 | 4.85 | 4.77 | 2.61 | 2.77 | 1.90 | 1.53 | 1.48 | 1.55 | 1.53 | 1.40 | — | — | — | — | ||||||
| Cadence Design Systems Inc. | — | 1.00 | 1.02 | 1.02 | 0.99 | 0.95 | 0.98 | 1.14 | 1.20 | 1.26 | 1.31 | 1.25 | 1.30 | 1.27 | 1.25 | 1.14 | 1.09 | 1.13 | 1.15 | 1.10 | ||||||
| CrowdStrike Holdings Inc. | 1.21 | 1.22 | 1.23 | 1.30 | 1.33 | 1.40 | 1.44 | 1.52 | 1.53 | 1.55 | 1.50 | 1.48 | 1.42 | 1.36 | 1.26 | 1.18 | 1.00 | 0.94 | 0.83 | 0.75 | ||||||
| Datadog Inc. | — | 0.93 | 0.94 | 0.97 | 0.99 | 0.96 | 0.99 | 1.03 | 1.05 | 1.11 | 1.15 | 1.19 | 1.19 | 1.19 | 1.12 | 1.07 | 0.99 | 0.92 | 0.84 | 0.80 | ||||||
| International Business Machines Corp. | — | 2.34 | 2.33 | 2.34 | 2.30 | 2.56 | 2.60 | 2.67 | 2.75 | 2.65 | 2.73 | 2.80 | 2.76 | 3.02 | 3.07 | 3.06 | 3.03 | 2.75 | 2.98 | 3.24 | ||||||
| Intuit Inc. | 0.96 | 0.90 | 0.96 | 0.91 | 0.88 | 0.84 | 0.89 | 0.87 | 0.83 | 0.80 | 0.86 | 0.83 | 0.77 | 0.76 | 0.73 | 1.06 | 0.98 | 0.89 | 0.87 | 1.49 | ||||||
| Microsoft Corp. | 0.82 | 0.84 | 0.86 | 0.88 | 0.91 | 0.93 | 0.96 | 0.99 | 1.03 | 1.07 | 1.11 | 1.17 | 1.19 | 1.18 | 1.16 | 1.16 | 1.18 | 1.19 | 1.18 | 1.19 | ||||||
| Oracle Corp. | 2.81 | 3.33 | 4.00 | 4.98 | 6.08 | 9.34 | 13.35 | 21.50 | 46.56 | — | — | — | — | — | — | — | 7.73 | 4.46 | 4.98 | 4.13 | ||||||
| Palantir Technologies Inc. | — | 0.59 | 0.58 | 0.57 | 0.57 | 0.59 | 0.61 | 0.62 | 0.64 | 0.67 | 0.69 | 0.73 | 0.74 | 0.77 | 0.74 | 0.70 | — | — | — | — | ||||||
| Palo Alto Networks Inc. | 1.18 | 1.23 | 1.34 | 1.40 | 1.55 | 1.74 | 1.73 | 3.32 | 3.94 | 5.27 | 8.44 | 11.45 | 26.20 | 15.31 | 41.24 | 8.78 | 6.71 | 4.00 | 3.65 | 4.80 | ||||||
| Salesforce Inc. | 0.62 | 0.64 | 0.63 | 0.60 | 0.58 | 0.58 | 0.57 | 0.56 | 0.54 | 0.51 | 0.49 | 0.47 | 0.46 | 0.44 | 0.42 | 0.53 | 0.51 | 0.50 | 0.50 | 0.53 | ||||||
| ServiceNow Inc. | — | 1.12 | 1.10 | 1.13 | 1.14 | 1.13 | 1.15 | 1.17 | 1.18 | 1.18 | 1.16 | 1.36 | 1.44 | 1.53 | 1.57 | 1.57 | 1.60 | 1.57 | 1.58 | 1.59 | ||||||
| Workday Inc. | 0.93 | 0.95 | 0.94 | 0.93 | 0.90 | 1.05 | 1.07 | 1.09 | 1.11 | 1.10 | 1.11 | 1.13 | 1.13 | 1.16 | 1.21 | 1.31 | 1.32 | 1.35 | 1.41 | 1.47 | ||||||
Based on: 10-K (reporting date: 2025-10-31), 10-Q (reporting date: 2025-07-31), 10-Q (reporting date: 2025-04-30), 10-Q (reporting date: 2025-01-31), 10-K (reporting date: 2024-10-31), 10-Q (reporting date: 2024-07-31), 10-Q (reporting date: 2024-04-30), 10-Q (reporting date: 2024-01-31), 10-K (reporting date: 2023-10-31), 10-Q (reporting date: 2023-07-31), 10-Q (reporting date: 2023-04-30), 10-Q (reporting date: 2023-01-31), 10-K (reporting date: 2022-10-31), 10-Q (reporting date: 2022-07-31), 10-Q (reporting date: 2022-04-30), 10-Q (reporting date: 2022-01-31), 10-K (reporting date: 2021-10-31), 10-Q (reporting date: 2021-07-31), 10-Q (reporting date: 2021-04-30), 10-Q (reporting date: 2021-01-31).
1 Q4 2025 Calculation
Equity turnover
= (RevenueQ4 2025
+ RevenueQ3 2025
+ RevenueQ2 2025
+ RevenueQ1 2025)
÷ Total Synopsys stockholders’ equity
= (2,254,860 + 1,739,737 + 1,604,266 + 1,455,315)
÷ 28,327,602 = 0.25
2 Click competitor name to see calculations.
The equity turnover ratio for the analyzed period demonstrates a generally increasing trend, followed by a significant decline in later periods. Initially, the ratio remained relatively stable, then increased before experiencing a substantial decrease. This suggests a changing relationship between revenue generation and the utilization of shareholder equity.
- Overall Trend
- From January 31, 2021, through October 31, 2022, the equity turnover ratio exhibited a gradual upward trend, increasing from 0.78 to 0.92. This indicates that the company was becoming more efficient in generating revenue relative to its equity base. However, beginning with January 31, 2023, a marked downward trend commenced. By October 31, 2025, the ratio had fallen to 0.25, representing a significant decrease in efficiency.
- Initial Stability and Growth (2021-2022)
- The period between January 2021 and October 2022 showed relative consistency, with the ratio fluctuating within a narrow range. The incremental increases during this timeframe suggest a healthy expansion of revenue in relation to equity. The highest value of 0.92 was recorded in October 2022.
- Decline and Potential Implications (2023-2025)
- The decline starting in 2023 is substantial. While revenue continued to increase overall, the growth in total stockholders’ equity outpaced revenue growth, leading to the reduced turnover ratio. The most dramatic decrease occurred between July 2025 (0.23) and October 2025 (0.25). This could indicate increased equity financing, share repurchases, or retained earnings accumulating at a faster rate than revenue generation. The extremely low values in the final periods suggest a significantly lower efficiency in utilizing equity to generate sales.
- Revenue and Equity Relationship
- The analysis reveals a shift in the relationship between revenue and equity. While revenue demonstrated consistent growth throughout the period, the substantial increase in equity, particularly in the later quarters, diluted the equity turnover ratio. This suggests that the company may be retaining a larger portion of its earnings or actively increasing its equity base through external funding, which, while potentially beneficial for long-term stability, reduces the immediate efficiency of equity utilization.