Synopsys (XTER:SYP) ROCE % : 12.70% (As of Oct. 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 Oct. 2024 was 12.70%.

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

Oct15

Oct16

Oct17

Oct18

Oct19

Oct20

Oct21

Oct22

Oct23

Oct24

ROCE %

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11.87

13.32

18.58

18.01

15.06

Synopsys Quarterly Data
	Jan20	Apr20	Jul20	Oct20	Jan21	Apr21	Jul21	Oct21	Jan22	Apr22	Jul22	Oct22	Jan23	Apr23	Jul23	Oct23	Jan24	Apr24	Jul24	Oct24
ROCE %	Get a 7-Day Free Trial															22.53	18.57	16.30	16.27	12.70

Synopsys ROCE % Calculation

Synopsys's annualized ROCE % for the fiscal year that ended in Oct. 2024 is calculated as:

ROCE %	=	EBIT	/	( (Capital Employed	+	Capital Employed)	/ count )
		(A: Oct. 2024 )		(A: Oct. 2023 )		(A: Oct. 2024 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(A: Oct. 2024 )		(A: Oct. 2023 )		(A: Oct. 2024 )
	=	1244.543	/	( ( (9785.475 - 2827.222)	+	(12001.529 - 2432.81) )	/ 2 )
	=	1244.543	/	( (6958.253	+	9568.719)	/ 2 )
	=	1244.543	/	8263.486
	=	15.06 %

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

ROCE %	=	EBIT ⁽¹⁾	/	( (Capital Employed	+	Capital Employed)	/ count )
		(Q: Oct. 2024 )		(Q: Jul. 2024 )		(Q: Oct. 2024 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(Q: Oct. 2024 )		(Q: Jul. 2024 )		(Q: Oct. 2024 )
	=	1141.264	/	( ( (10740.087 - 2337.224)	+	(12001.529 - 2432.81) )	/ 2 )
	=	1141.264	/	( ( 8402.863	+	9568.719 )	/ 2 )
	=	1141.264	/	8985.791
	=	12.70 %

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

Synopsys (XTER:SYP) 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.

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Synopsys 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 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.

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