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SNPS (Synopsys) Gross Margin % : 77.08% (As of Oct. 2024)


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What is Synopsys Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. Synopsys's Gross Profit for the three months ended in Oct. 2024 was $1,261 Mil. Synopsys's Revenue for the three months ended in Oct. 2024 was $1,636 Mil. Therefore, Synopsys's Gross Margin % for the quarter that ended in Oct. 2024 was 77.08%.


The historical rank and industry rank for Synopsys's Gross Margin % or its related term are showing as below:

SNPS' s Gross Margin % Range Over the Past 10 Years
Min: 75.99   Med: 78.02   Max: 79.68
Current: 79.33


During the past 13 years, the highest Gross Margin % of Synopsys was 79.68%. The lowest was 75.99%. And the median was 78.02%.

SNPS's Gross Margin % is ranked better than
87.74% of 2618 companies
in the Software industry
Industry Median: 41.435 vs SNPS: 79.33

Synopsys had a gross margin of 77.08% for the quarter that ended in Oct. 2024 => Durable competitive advantage

The 5-Year average Growth Rate of Gross Margin for Synopsys was 0.40% per year.


Synopsys Gross Margin % Historical Data

The historical data trend for Synopsys's Gross Margin % 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 Gross Margin % Chart

Synopsys Annual Data
Trend Oct15 Oct16 Oct17 Oct18 Oct19 Oct20 Oct21 Oct22 Oct23 Oct24
Gross Margin %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 78.44 79.50 79.07 79.08 79.68

Synopsys Quarterly Data
Jan20 Apr20 Jul20 Oct20 Jan21 Apr21 Jul21 Oct21 Jan22 Apr22 Jul22 Oct22 Jan23 Apr23 Jul23 Oct23 Jan24 Apr24 Jul24 Oct24
Gross Margin % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 76.03 80.04 79.35 80.95 77.08

Competitive Comparison of Synopsys's Gross Margin %

For the Software - Infrastructure subindustry, Synopsys's Gross Margin %, along with its competitors' market caps and Gross Margin % 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 Gross Margin % Distribution in the Software Industry

For the Software industry and Technology sector, Synopsys's Gross Margin % distribution charts can be found below:

* The bar in red indicates where Synopsys's Gross Margin % falls into.



Synopsys Gross Margin % Calculation

Gross Margin is the percentage of Gross Profit out of sales or Revenue.

Synopsys's Gross Margin for the fiscal year that ended in Oct. 2024 is calculated as

Gross Margin % (A: Oct. 2024 )=Gross Profit (A: Oct. 2024 ) / Revenue (A: Oct. 2024 )
=4882.1 / 6127.436
=(Revenue - Cost of Goods Sold) / Revenue
=(6127.436 - 1245.289) / 6127.436
=79.68 %

Synopsys's Gross Margin for the quarter that ended in Oct. 2024 is calculated as


Gross Margin % (Q: Oct. 2024 )=Gross Profit (Q: Oct. 2024 ) / Revenue (Q: Oct. 2024 )
=1261 / 1635.986
=(Revenue - Cost of Goods Sold) / Revenue
=(1635.986 - 375.023) / 1635.986
=77.08 %

* 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.

A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.


Synopsys  (NAS:SNPS) Gross Margin % Explanation

Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.

Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %

1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key

Synopsys had a gross margin of 77.08% for the quarter that ended in Oct. 2024 => Durable competitive advantage


Be Aware

If a company loses its competitive advantages, usually its gross margin declines well before its sales declines. Watching Gross Margin % and Operating Margin % closely helps avoid value trap situations.


Synopsys Gross Margin % Related Terms

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


Synopsys Business Description

Address
675 Almanor Avenue, Sunnyvale, CA, USA, 94085
Synopsys is a provider of electronic design automation software and intellectual property products. EDA software automates and aids in the chip design process, enhancing design accuracy, productivity, and complexity in a full-flow end-to-end solution. Synopsys' comprehensive portfolio is benefiting from a convergence of semiconductor companies moving up the stack of technologies 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.
Executives
Sassine Ghazi officer: Chief Operating Officer 3075 W RAY ROAD, SUITE 528, THE PARK AT SAN TAN, CHANDLER AZ 85226
Geus Aart De director, officer: Chairman of the Board & Co-CEO
Richard S. Mahoney officer: Chief Revenue Officer 2600 ANSYS DRIVE, CANONSBURG PA 15317
Runkel John F Jr officer: General Counsel & C/O INTUITIVE SURGICAL, INC., 1266 KIFER ROAD, SUNNYVALE CA 94086
Mercedes Johnson director MICRON TECHNOLOGY, INC, 8000 S FEDERAL WAY, MS 1-557, BOISE ID 83716
Marc N Casper director C/O THERMO FISHER SCIENTIFIC, 168 THIRD AVENUE, WALTHAM MA 02451
Roy Vallee director 2211 S 47TH ST, PHOENIX AZ 85034
Sudhindra Kankanwadi officer: VP and Corporate Controller 690 E MIDDLEFIELD ROAD, MOUNTAIN VIEW CA 94043
Robert G Painter director C/O TRIMBLE INC., 935 STEWART DRIVE, SUNNYVALE CA 94085
Shelagh Glaser officer: CFO ZENDESK, INC., 989 MARKET STREET, SAN FRANCISCO CA 94103
Joseph W Logan officer: EVP, Sales & Corp Marketing 700 EAST MIDDLEFIELD ROAD, MOUNTAIN VIEW CA 94043
Chrysostomos L Nikias director UNIVERSITY OF SOUTHERN CALIFORNIA, 3551 TROUSEDALE, BOVARD ADM 102, LOS ANGELES CA 90089-4019
Trac Pham officer: CFO 700 E. MIDDLEFIELD ROAD, MOUNTAIN VIEW CA 94043
Luis Borgen director 58 SUNSET RIDGE LANE, BOLTON MA 01740
Chi-foon Chan director, officer: Co-CEO & President