Analysis of Reportable Segments
Synopsys Inc. operates in 3 segments: Design Automation; Design IP; and Software Integrity.
Segment Profit Margin
Synopsys Inc., profit margin by reportable segment
| Oct 31, 2024 | Oct 31, 2023 | Oct 31, 2022 | Oct 31, 2021 | Oct 31, 2020 | Oct 31, 2019 | |
|---|---|---|---|---|---|---|
| Design Automation | 38.66% | 38.13% | 36.56% | 33.56% | — | — |
| Design IP | 38.30% | 34.49% | 32.04% | 30.17% | — | — |
| Software Integrity | — | 14.55% | 10.09% | 9.73% | — | — |
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).
| Segment profitability ratio | Reportable segment | The company |
|---|---|---|
| Segment profit margin | Design Automation | Design Automation segment profit margin ratio improved from 2022 to 2023 and from 2023 to 2024. |
| Design IP | Design IP segment profit margin ratio improved from 2022 to 2023 and from 2023 to 2024. | |
| Software Integrity | Software Integrity segment profit margin ratio improved from 2022 to 2023 but then deteriorated significantly from 2023 to 2024. |
Segment Profit Margin: Design Automation
Synopsys Inc.; Design Automation; segment profit margin calculation
| Oct 31, 2024 | Oct 31, 2023 | Oct 31, 2022 | Oct 31, 2021 | Oct 31, 2020 | Oct 31, 2019 | |
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||
| Adjusted operating income | 1,631,885) | 1,439,666) | 1,206,561) | 924,605) | —) | —) |
| Revenue | 4,221,122) | 3,775,287) | 3,300,173) | 2,754,737) | —) | —) |
| Segment Profitability Ratio | ||||||
| Segment profit margin1 | 38.66% | 38.13% | 36.56% | 33.56% | — | — |
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
Segment profit margin = 100 × Adjusted operating income ÷ Revenue
= 100 × 1,631,885 ÷ 4,221,122 = 38.66%
| Segment profitability ratio | Reportable segment | The company |
|---|---|---|
| Segment profit margin | Design Automation | Design Automation segment profit margin ratio improved from 2022 to 2023 and from 2023 to 2024. |
Segment Profit Margin: Design IP
Synopsys Inc.; Design IP; segment profit margin calculation
| Oct 31, 2024 | Oct 31, 2023 | Oct 31, 2022 | Oct 31, 2021 | Oct 31, 2020 | Oct 31, 2019 | |
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||
| Adjusted operating income | 730,174) | 532,055) | 421,547) | 318,473) | —) | —) |
| Revenue | 1,906,314) | 1,542,726) | 1,315,541) | 1,055,672) | —) | —) |
| Segment Profitability Ratio | ||||||
| Segment profit margin1 | 38.30% | 34.49% | 32.04% | 30.17% | — | — |
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
Segment profit margin = 100 × Adjusted operating income ÷ Revenue
= 100 × 730,174 ÷ 1,906,314 = 38.30%
| Segment profitability ratio | Reportable segment | The company |
|---|---|---|
| Segment profit margin | Design IP | Design IP segment profit margin ratio improved from 2022 to 2023 and from 2023 to 2024. |
Segment Profit Margin: Software Integrity
Synopsys Inc.; Software Integrity; segment profit margin calculation
| Oct 31, 2024 | Oct 31, 2023 | Oct 31, 2022 | Oct 31, 2021 | Oct 31, 2020 | Oct 31, 2019 | |
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||
| Adjusted operating income | —) | 76,324) | 46,994) | 38,311) | —) | —) |
| Revenue | —) | 524,606) | 465,828) | 393,784) | —) | —) |
| Segment Profitability Ratio | ||||||
| Segment profit margin1 | — | 14.55% | 10.09% | 9.73% | — | — |
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
Segment profit margin = 100 × Adjusted operating income ÷ Revenue
= 100 × 0 ÷ 0 = —
| Segment profitability ratio | Reportable segment | The company |
|---|---|---|
| Segment profit margin | Software Integrity | Software Integrity segment profit margin ratio improved from 2022 to 2023 but then deteriorated significantly from 2023 to 2024. |
Revenue
Synopsys Inc., revenue by reportable segment
US$ in thousands
| Oct 31, 2024 | Oct 31, 2023 | Oct 31, 2022 | Oct 31, 2021 | Oct 31, 2020 | Oct 31, 2019 | |
|---|---|---|---|---|---|---|
| Design Automation | 4,221,122) | 3,775,287) | 3,300,173) | 2,754,737) | —) | —) |
| Design IP | 1,906,314) | 1,542,726) | 1,315,541) | 1,055,672) | —) | —) |
| Software Integrity | —) | 524,606) | 465,828) | 393,784) | —) | —) |
| Total | 6,127,436) | 5,842,619) | 5,081,542) | 4,204,193) | —) | —) |
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).
Adjusted operating income
Synopsys Inc., adjusted operating income by reportable segment
US$ in thousands
| Oct 31, 2024 | Oct 31, 2023 | Oct 31, 2022 | Oct 31, 2021 | Oct 31, 2020 | Oct 31, 2019 | |
|---|---|---|---|---|---|---|
| Design Automation | 1,631,885) | 1,439,666) | 1,206,561) | 924,605) | —) | —) |
| Design IP | 730,174) | 532,055) | 421,547) | 318,473) | —) | —) |
| Software Integrity | —) | 76,324) | 46,994) | 38,311) | —) | —) |
| Total | 2,362,059) | 2,048,045) | 1,675,102) | 1,281,389) | —) | —) |
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).