Synopsys (FRA:SYP) Debt-to-EBITDA : 0.32 (As of Jan. 2024)

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What is Synopsys Debt-to-EBITDA?

Debt-to-EBITDA measures a company's ability to pay off its debt.

Synopsys's Short-Term Debt & Capital Lease Obligation for the quarter that ended in Jan. 2024 was €82 Mil. Synopsys's Long-Term Debt & Capital Lease Obligation for the quarter that ended in Jan. 2024 was €533 Mil. Synopsys's annualized EBITDA for the quarter that ended in Jan. 2024 was €1,944 Mil. Synopsys's annualized Debt-to-EBITDA for the quarter that ended in Jan. 2024 was 0.32.

A high Debt-to-EBITDA ratio generally means that a company may spend more time to paying off its debt. According to Joel Tillinghast's BIG MONEY THINKS SMALL: Biases, Blind Spots, and Smarter Investing, a ratio of Debt-to-EBITDA exceeding four is usually considered scary unless tangible assets cover the debt.

The historical rank and industry rank for Synopsys's Debt-to-EBITDA or its related term are showing as below:

FRA:SYP' s Debt-to-EBITDA Range Over the Past 10 Years
Min: 0.16 Med: 0.43 Max: 0.8
Current: 0.38

During the past 13 years, the highest Debt-to-EBITDA Ratio of Synopsys was 0.80. The lowest was 0.16. And the median was 0.43.

FRA:SYP's Debt-to-EBITDA is ranked better than
69.3% of 1596 companies
in the Software industry
Industry Median: 1.035 vs FRA:SYP: 0.38

Synopsys Debt-to-EBITDA Historical Data

The historical data trend for Synopsys's Debt-to-EBITDA 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.

* Premium members only.

Synopsys Debt-to-EBITDA Chart

Synopsys Annual Data

Trend

Oct14

Oct15

Oct16

Oct17

Oct18

Oct19

Oct20

Oct21

Oct22

Oct23

Debt-to-EBITDA

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0.18

0.78

0.66

0.49

0.44

Synopsys Quarterly Data
	Apr19	Jul19	Oct19	Jan20	Apr20	Jul20	Oct20	Jan21	Apr21	Jul21	Oct21	Jan22	Apr22	Jul22	Oct22	Jan23	Apr23	Jul23	Oct23	Jan24
Debt-to-EBITDA	Get a 7-Day Free Trial															0.51	0.49	0.45	0.36	0.32

Competitive Comparison of Synopsys's Debt-to-EBITDA

For the Software - Infrastructure subindustry, Synopsys's Debt-to-EBITDA, along with its competitors' market caps and Debt-to-EBITDA data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

Synopsys's Debt-to-EBITDA Distribution in the Software Industry

For the Software industry and Technology sector, Synopsys's Debt-to-EBITDA distribution charts can be found below:

* The bar in red indicates where Synopsys's Debt-to-EBITDA falls into.

Synopsys Debt-to-EBITDA Calculation

Debt-to-EBITDA measures a company's ability to pay off its debt.

Synopsys's Debt-to-EBITDA for the fiscal year that ended in Oct. 2023 is calculated as

Debt-to-EBITDA	=	Total Debt			/	EBITDA
	=	(Short-Term Debt & Capital Lease Obligation	+	Long-Term Debt & Capital Lease Obligation)	/	EBITDA
	=	(81.148	+	570.201)	/	1467.926
	=	0.44

Synopsys's annualized Debt-to-EBITDA for the quarter that ended in Jan. 2024 is calculated as

Debt-to-EBITDA	=	Total Debt			/	EBITDA
	=	(Short-Term Debt & Capital Lease Obligation	+	Long-Term Debt & Capital Lease Obligation)	/	EBITDA
	=	(81.88	+	533.143)	/	1943.648
	=	0.32

In the calculation of annual Debt-to-EBITDA, the EBITDA of the last fiscal year is used. In calculating the annualized quarterly data, the EBITDA data used here is four times the quarterly (Jan. 2024) EBITDA data.

Synopsys (FRA:SYP) Debt-to-EBITDA Explanation

In the calculation of Debt-to-EBITDA, we use the total of Short-Term Debt & Capital Lease Obligation and Long-Term Debt & Capital Lease Obligation divided by EBITDA. In some calculations, Total Liabilities is used to for calculation.

Be Aware

A high Debt-to-EBITDA ratio generally means that a company may spend more time to paying off its debt.

According to Joel Tillinghast's BIG MONEY THINKS SMALL: Biases, Blind Spots, and Smarter Investing, a ratio of Debt-to-EBITDA exceeding four is usually considered scary unless tangible assets cover the debt.

Synopsys Debt-to-EBITDA Related Terms

Thank you for viewing the detailed overview of Synopsys's Debt-to-EBITDA provided by GuruFocus.com. Please click on the following links to see related term pages.

Synopsys (FRA:SYP) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Technology » Software » Synopsys Inc (FRA:SYP) » Definitions » Debt-to-EBITDA

Comparable Companies

Traded in Other Exchanges

SNPS:USA SNPS:Mexico SYPd:UK SYP:Germany S1NP34:Brazil

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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