Synopsys (BSP:S1NP34) ROCE % : 24.12% (As of Jan. 2024)

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What is Synopsys ROCE %?

ROCE % measures how well a company generates profits from its capital. It is calculated as EBIT divided by Capital Employed, where Capital Employed is calculated as Total Assets minus Total Current Liabilities. Synopsys's annualized ROCE % for the quarter that ended in Jan. 2024 was 24.12%.

Synopsys ROCE % Historical Data

The historical data trend for Synopsys's ROCE % can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

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Synopsys ROCE % Chart

Synopsys Annual Data

Trend

Oct14

Oct15

Oct16

Oct17

Oct18

Oct19

Oct20

Oct21

Oct22

Oct23

ROCE %

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13.30

13.88

13.13

16.76

18.29

Synopsys Quarterly Data
	Apr19	Jul19	Oct19	Jan20	Apr20	Jul20	Oct20	Jan21	Apr21	Jul21	Oct21	Jan22	Apr22	Jul22	Oct22	Jan23	Apr23	Jul23	Oct23	Jan24
ROCE %	Get a 7-Day Free Trial															16.49	16.54	17.67	23.13	24.12

Synopsys ROCE % Calculation

Synopsys's annualized ROCE % for the fiscal year that ended in Oct. 2023 is calculated as:

ROCE %	=	EBIT	/	( (Capital Employed	+	Capital Employed)	/ count )
		(A: Oct. 2023 )		(A: Oct. 2022 )		(A: Oct. 2023 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(A: Oct. 2023 )		(A: Oct. 2022 )		(A: Oct. 2023 )
	=	6587.635	/	( ( (49464.735 - 14571.946)	+	(52243.277 - 15094.142) )	/ 2 )
	=	6587.635	/	( (34892.789	+	37149.135)	/ 2 )
	=	6587.635	/	36020.962
	=	18.29 %

Synopsys's ROCE % of for the quarter that ended in Jan. 2024 is calculated as:

ROCE %	=	EBIT ⁽¹⁾	/	( (Capital Employed	+	Capital Employed)	/ count )
		(Q: Jan. 2024 )		(Q: Oct. 2023 )		(Q: Jan. 2024 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(Q: Jan. 2024 )		(Q: Oct. 2023 )		(Q: Jan. 2024 )
	=	9175.944	/	( ( (52243.277 - 15094.142)	+	(51927.629 - 13006.214) )	/ 2 )
	=	9175.944	/	( ( 37149.135	+	38921.415 )	/ 2 )
	=	9175.944	/	38035.275
	=	24.12 %

(1) Note: The EBIT data used here is four times the quarterly (Jan. 2024) EBIT data.

Synopsys (BSP:S1NP34) ROCE % Explanation

ROCE % can be especially useful when comparing the performance of capital-intensive companies. Unlike ROE %, which indicates the profitability of Shareholders Equity, ROCE % also considers long-term debt in Capital Employed. This can be helpful when analyzing companies with significant debt, as the result is neutralized by taking debt into consideration.

Generally speaking, a higher ROCE % indicates a stonger profitability for a company. Moreover, it is important to look at the ratio from a long term perspective. Investors tend to favor companies with stable and rising ROCE % trend over those with volatile ones.

Synopsys ROCE % Related Terms

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Synopsys (BSP:S1NP34) Business Description

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Address

675 Almanor Avenue, Sunnyvale, CA, USA, 94085

Website

https://www.synopsys.com

Synopsys is a provider of electronic design automation software, intellectual property, and software integrity products. EDA software automates the chip design process, enhancing design accuracy, productivity, and complexity in a full-flow end-to-end solution. The firm's growing SI business allows customers to continuously manage and test the code base for security and quality. Synopsys' comprehensive portfolio is benefiting from a mutual convergence of semiconductor companies moving up-stack toward systems-like companies, and systems companies moving down-stack toward in-house chip design. The resulting expansion in EDA customers alongside secular digitalization of various end markets benefits EDA vendors like Synopsys.

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