Synopsys Story

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SNPS -- USA Stock  

USD 201.51  6.99  3.35%

Synopsys is scheduled to announce its earnings today. The next earnings report is expected on the 2nd of December 2020. Synopsys PPandE Turnover is relatively stable at the moment as compared to the past year. Synopsys reported last year PPandE Turnover of 8.19. As of 08/19/2020, Receivables Turnover is likely to grow to 7.66, while Revenue Per Employee is likely to drop slightly above 209.2 K. As many investors are getting excited about technology space, it is fair to sum up Synopsys as an investment option.
Published over a month ago
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What is September outlook for Synopsys (NASDAQ:SNPS)?
The company currently holds 770.34 M in liabilities with Debt to Equity (D/E) ratio of 0.18, which may suggest Synopsys is not taking enough advantage from borrowing. Synopsys has a current ratio of 0.93, indicating that it has a negative working capital and may not be able to pay financial obligations when due.
Synopsys financial leverage ratio helps determine the effect of debt on the overall profitability of the company. It measures the total debt position of Synopsys, including all of Synopsys's outstanding debt obligations, and compares it with the equity. In simple terms, the high financial leverage means the cost of production, together with running the business day-to-day, is high, whereas, lower financial leverage implies lower fixed cost investment in the business and generally considered by investors to be a good sign. So if creditors own a majority of Synopsys assets, the company is considered highly leveraged. Understanding the composition and structure of overall Synopsys debt and outstanding corporate bonds gives a good idea of how risky the capital structure of a business is and if it is worth investing in it. Please read more on our technical analysis page.

Understanding Synopsys Total Liabilities

Synopsys liabilities are broken down into two parts on the balance sheet. These are short-term (or current) obligations and long-term debt. Synopsys has to fulfill its short-term liabilities in this reporting year and should be no more than 12 months old. Long-term debt, on the other hand, is anything beyond the 12-month payment timeframe. Common short-term liabilities found on Synopsys balance sheet include debt obligations and money owed to different Synopsys vendors, workers, and loan providers. Below is the chart of Synopsys short long-term liabilities accounts currently reported on its balance sheet.
You can use Synopsys financial leverage analysis tool to get a better grip on understanding its financial position

How important is Synopsys's Liquidity

Synopsys financial leverage refers to using borrowed capital as a funding source to finance Synopsys ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Synopsys financial leverage is typically calculated by taking the company's all interest-bearing debt and dividing it by total capital. So the higher the debt-to-capital ratio (i.e., financial leverage), the riskier the company. Please check the breakdown between Synopsys's total debt and its cash.

What do experts say?

Stock analysis is a method for investors and traders to make buying and selling decisions. By studying and evaluating past and current data, investors and traders attempt to gain an edge in the markets by making informed decisions. It is good to see analyst projects for Synopsys, but it might be worth checking our own buy vs. sell analysis

Going after Synopsys Financials

The entity reported the previous year's revenue of 3.4 B. Net Income was 474.62 M with profit before overhead, payroll, taxes, and interest of 2.67 B.

Liabilities Breakdown

1.4 B
Current Liabilities
Long-Term Liabilities
Total Liabilities1.88 Billion
Current Liabilities1.44 Billion
Long-Term Liabilities249.37 Million
Tax Liabilities73.48 Million

Synopsys has 69 percent chance to fall under $196 in the coming weeks

Synopsys latest potential upside advances over 2.78. Synopsys has relatively low volatility with skewness of -0.53 and kurtosis of 1.0. However, we advise all investors to independently investigate Synopsys to ensure all accessible information is consistent with the expectations about its upside potential and future expected returns.

While some other entities under the software?infrastructure industry are still a bit expensive, Synopsys may offer a potential longer-term growth to retail investors. The bottom line, as of the 19th of August 2020, we see that Synopsys slowly supersedes the market. The enterprise is undervalued with very low probability of distress within the next 24 months. Our concluding 30 days 'Buy-vs-Sell' recommendation on the enterprise is Strong Buy.

About Contributor

This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Achuva Shats do not own shares of Synopsys. Please refer to our Terms of Use for any information regarding our disclosure principles.

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