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Synopsys, Inc. provides electronic design automation software products used to design and test integrated circuits. It operates in two segments, Design Automation and Design IP. The company offers Dig...
The following section summarizes insights on Synopsys Inc's Return on Common Equity:
We've identified the following companies as similar to Synopsys Inc because they operate in a related industry or sector. We also considered size, growth, and various financial metrics to narrow down the list to the ones listed below.
To view the full list of supported financial metrics please see Complete Metrics Listing.
Metrics similar to Return on Common Equity in the efficiency category include:
A ratio used to measure the return that a firm generates on the book value of common equity.
Return on Common Equity is defined as:
Return on Common Equity = Net Income To Common / Average Total Common Equity
Return on Common Equity for Synopsys is calculated as follows:
Net Income [ 1.3 B ]
(/) Average Equity over Period [ 7.988 B ]
(=) Return on Common Equity [ 16.3% ]
The tables below summarizes the trend in Synopsys’s return on common equity over the last five years:
| Fiscal Year | Net Income | Average Common Equity | Return on Common Equity |
|---|---|---|---|
| 2020-10-31 | 664.3 M | 4.495 B | 14.8% |
| 2021-10-31 | 757.5 M | 5.101 B | 14.8% |
| 2022-10-31 | 970.2 M | 5.405 B | 17.9% |
| 2023-10-31 | 1.227 B | 5.832 B | 21.0% |
| 2024-10-31 | 1.442 B | 7.569 B | 19.0% |
Return on equity represents the percentage return a company generates on the money shareholders have invested.
The Net Income used in the numerator is often adjusted for one-time and non-recurring items to present a clearer view of future earnings. Since income is earned over the course of a year, we average book value of Common Equity at the start and end of the year for the denominator.
In general, a higher return on equity suggests management is utilizing the capital invested by shareholders efficiently.
The chart above depicts the distribution of return on common equity for companies operating in the Information Technology sector in the Developed economic region. Over 2,310 companies were considered in this analysis, and 2,224 had meaningful values. The average return on common equity of companies in the sector is -26.2% with a standard deviation of 93.4%.
Synopsys Inc's Return on Common Equity of 16.3% ranks in the 81.0% percentile for the sector. The following table provides additional summary stats:
| Economic Risk Region | Developed |
| Total Constituents | 2,316 |
| Included Constituents | 2,224 |
| Min | -787.8% |
| Max | 62.3% |
| Median | 3.3% |
| Mean | -26.2% |
| Standard Deviation | 93.4% |
You can find companies with similar return on common equity using this stock screener.