Synopsys, Inc. cash flow to debt ratio of 10.62% indicates that the company cannot generate enough cash to cover its debt over time. This level indicates weak financial health.

Synopsys, Inc.'s free cash flow has increased 5.09% from $1.28B last year to $1.35B, signaling increasing performance

Synopsys, Inc.'s debt to equity ratio is 0.36, which means that the company's assets are healthy financed, signaling financial stability.

Synopsys, Inc.'s debt has increased relative to shareholder equity from 0.08 last year to 0.36 today, signaling weakened financials

Synopsys, Inc. has a net debt to EBITDA ratio of 4.53x, which exceeds the 3.00x threshold, indicating high leverage and potential financial risk

Synopsys, Inc.'s interest coverage ratio is 1.14, which means that the company struggles to meet interest obligations, signaling financial risk.

Synopsys, Inc.'s profit margin has decreased (75.89%) in the last year from 36.94% to 8.91%, signaling decreasing performance

Synopsys, Inc.'s short-term assets of $6.01B exceed its short-term liabilities of $3.72B

Synopsys, Inc.'s return on assets of 1.65% is lower than the 5.00% threshold, indicating inefficient asset utilization

Synopsys, Inc.'s return on equity of 2.64%, is lower than 15.00%, indicating bad performance

Synopsys, Inc.'s operating cash flow exceeds its net income, indicating high-quality earnings backed by actual cash generation

Synopsys, Inc. had positive net income in 5 out of 5 years, indicating stable and consistent earnings

Synopsys, Inc. has positive free cash flow, indicating the company generates cash after capital expenditures

Synopsys, Inc. has a free cash flow yield of 1.71%, which is below the 2.00% threshold, indicating limited cash return relative to market value

Synopsys, Inc.'s yearly earnings has decreased 41.14% since last year from $2.26B to $1.33B, signaling decreasing performance

Synopsys, Inc.'s yearly revenue has increased 15.12% since last year from $6.13B to $7.05B, signaling increasing performance

ROIC 1.61% (Source: FMP key-metrics). Below the 5% partial-credit threshold. Score: 0 of 2. The 5% and 10% cutoffs anchor to typical US weighted-average cost of capital. Below 5% indicates the company is not generating returns above its likely cost of capital under this definition of invested capital. Invested capital here includes equity, non-current liabilities (pension obligations, deferred taxes, lease obligations), and short-term debt. Cash is not subtracted. Companies with substantial float, lease portfolios, or cash holdings will score lower under this definition than under narrower operating-capital definitions. See methodology.

Synopsys, Inc.'s 3-year revenue CAGR of 15.19% is positive, indicating growing revenue over the past 3 years

Synopsys, Inc. had revenue growth in 5 out of 5 years, indicating consistent revenue performance

Synopsys, Inc. had positive ROE in 5 out of 5 years, indicating consistent and reliable returns on equity

Synopsys, Inc. is overvalued relative to its fair value price of 65.48 based on Discounted Cash Flow model

Synopsys, Inc. has an earnings yield of 0.99%, which is below the 4.00% threshold, indicating the stock may be expensive relative to its earnings

Synopsys, Inc. is overvalued relative to its fair value price of 31.83 based on EBITDA multiple model

Synopsys, Inc. has an EV/EBITDA ratio of 36.06x, which exceeds the 20.00x threshold, indicating the stock may be overvalued relative to its operating earnings

Synopsys, Inc. is overvalued relative to its fair value price of 219.75 based on Earnings Fair Value model

Synopsys, Inc. has a PEG-ratio over 1 which is considered overvalued

Synopsys, Inc. has a price-to-book ratio of 2.57x, which is below the 5.00x threshold, indicating reasonable valuation relative to its book value

Synopsys, Inc. has a price-to-sales ratio of 9.04x, which exceeds the 8.00x threshold, indicating the stock may be overvalued relative to its revenue