Market Cap : 57.24 B | Enterprise Value : 57.5 B | PE Ratio : 58.21 | PB Ratio : 10.29 |
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Synopsys has the Financial Strength Rank of 8. It shows strong financial strength and is unlikely to fall into distressed situations.
Good Sign:
Synopsys Inc shows strong financial strength.
GuruFocus Financial Strength Rank measures how strong a company's financial situation is. It is based on these factors:
1. The debt burden that the company has as measured by its Interest Coverage (current year). The higher, the better.Synopsys's Interest Coverage for the quarter that ended in Apr. 2022 was 910.03. Synopsys's debt to revenue ratio for the quarter that ended in Apr. 2022 was 0.13. As of today, Synopsys's Altman Z-Score is 11.48.
For the Software - Infrastructure subindustry, Synopsys's Financial Strength, along with its competitors' market caps and Financial Strength 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.
For the Software industry and Technology sector, Synopsys's Financial Strength distribution charts can be found below:
* The bar in red indicates where Synopsys's Financial Strength falls into.
GuruFocus Financial Strength Rank measures how strong a company's financial situation is. It is based on these factors
A company ranks high with financial strength is likely to withstand any business slowdowns and recessions.
1. The debt burden that the company has as measured by its Interest Coverage (current year). The higher, the better.
Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.
Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:
Synopsys's Interest Expense for the months ended in Apr. 2022 was $-0 Mil. Its Operating Income for the months ended in Apr. 2022 was $364 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Apr. 2022 was $625 Mil.
Synopsys's Interest Coverage for the quarter that ended in Apr. 2022 is
Interest Coverage | = | -1 | * | Operating Income (Q: Apr. 2022 ) | / | Interest Expense (Q: Apr. 2022 ) |
= | -1 | * | 364.012 | / | -0.4 | |
= | 910.03 |
The higher the ratio, the stronger the company's financial strength is.
Good Sign:
Ben Graham prefers companies' interest coverage to be at least 5. Synopsys Inc has enough cash to cover all of its debt. Its financial situation is stable.
2. Debt to revenue ratio. The lower, the better.
Synopsys's Debt to Revenue Ratio for the quarter that ended in Apr. 2022 is
Debt to Revenue Ratio | = | Total Debt (Q: Apr. 2022 ) | / | Revenue | ||
= | (Short-Term Debt & Capital Lease Obligation | + | Long-Term Debt & Capital Lease Obligation) | / | Revenue | |
= | (55.17 | + | 625.092) | / | 5116.916 | |
= | 0.13 |
3. Altman Z-Score.
Z-Score model is an accurate forecaster of failure up to two years prior to distress. It can be considered the assessment of the distress of industrial corporations.
The zones of discrimination were as such:
When Z-Score is less than 1.81, it is in Distress Zones.
When Z-Score is greater than 2.99, it is in Safe Zones.
When Z-Score is between 1.81 and 2.99, it is in Grey Zones.
Synopsys has a Z-score of 11.48, indicating it is in Safe Zones. This implies the Z-Score is strong.
Good Sign:
Altman Z-score of 11.48 is strong.
* 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.
The maximum rank is 10. Companies with rank 7 or higher will be unlikely to fall into distressed situations. Companies with rank of 3 or less are likely in financial distress.
Synopsys has the Financial Strength Rank of 8. It shows strong financial strength and is unlikely to fall into distressed situations.
Thank you for viewing the detailed overview of Synopsys's Financial Strength provided by GuruFocus.com. Please click on the following links to see related term pages.
Casper Marc N | director | C/O THERMO FISHER SCIENTIFIC 168 THIRD AVENUE WALTHAM MA 02451 |
Borgen Luis | director | 58 SUNSET RIDGE LANE BOLTON MA 01740 |
Sargent Jeannine P | director | C/O VEECO INSTRUMENTS INC. 100 SUNNYSIDE BOULEVARD SUITE B WOODBURY NY 11797 |
Ghazi Sassine | officer: Chief Operating Officer | 3075 W RAY ROAD, SUITE 528 THE PARK AT SAN TAN CHANDLER AZ 85226 |
Johnson Mercedes | director | MICRON TECHNOLOGY, INC 8000 S FEDERAL WAY, MS 1-557 BOISE ID 83716 |
Kankanwadi Sudhindra | officer: VP and Corporate Controller | 690 E MIDDLEFIELD ROAD MOUNTAIN VIEW CA 94043 |
Vallee Roy | director | 2211 S 47TH ST PHOENIX AZ 85034 |
Schwarz John | director | 20330 STEVENS CREEK BLVD. CUPERTINO CA 95014 |
Nikias Chrysostomos L | director | UNIVERSITY OF SOUTHERN CALIFORNIA 3551 TROUSEDALE, BOVARD ADM 102 LOS ANGELES CA 90089-4019 |
Walske Steven | director | C/O PARAMETRIC TECHNOLOGY CORP 128 TECHNOLOGY DR WALTHAM MA 02154 |
Logan Joseph W | officer: EVP, Sales & Corp Marketing | 700 EAST MIDDLEFIELD ROAD MOUNTAIN VIEW CA 94043 |
Coleman Deborah A | director | 1414 SW 3RD AVENUE #2701 FTN PLAZA PORTLAND OR 97201-6627 |
De Geus Aart | director, officer: Chairman of the Board & Co-CEO | |
Beattie Brian M | officer: EVP, Business Ops. & CAO | 875 MAHLER RD STE 280 BURLINGAME CA 94010 |
Chan Chi-foon | director, officer: Co-CEO & President |
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