Aureus
FRed Flag

Synopsys, Inc.(SNPS)

F

Financial data as of Oct 31, 2025Improving · Technology

FCF Margin6.5%Free Cash Flow / Revenue
Cash Conversion114.0%Operating CF / Net Income
Free Cash Flow$1.3B
Revenue$7.1B
Net Cash-$11.4BNet debt position
Debt / FCF31.4xElevated debt burden
Current Ratio1.62Adequate short-term liquidity
YoY FCF Growth+100.0%4 of 5 quarters positive

How This Grade Was Calculated

Base grade from FCF margin, adjusted by financial health factors

BaseF
→
-2Extreme debt-to-FCF ratio (31.4x)
→
+1Strong YoY FCF growth (100.0% YoY)
→
-0.5Highly volatile FCF (consistency: 1.50)
→
+0.5Strong revenue growth (65.5% YoY) offsets compressed FCF margin
→
FinalF

Analysis Summary

Strengths

  • Excellent cash conversion (114%)
  • Strong YoY FCF growth (+100.0%)
  • Strong revenue growth (65.5% YoY)

Concerns

  • Low FCF margin (6.5%)
  • Heavy debt position ($11.4B net debt, 31.4x FCF)
  • High debt-to-FCF ratio (31.4x)
  • Highly volatile quarterly FCF
SBC-adjusted FCF used — $0.9B stock-based compensation (66% of reported FCF) subtracted

Financial Breakdown

Key financials compared side by side

Margin Composition

FCF Margin6.5%
Net Margin18.9%
Operating CF Margin21.5%
CapEx Ratio2.4%

Balance Sheet Health

Debt, liquidity, and leverage snapshot

Net Cash-$11.4BNet debt position
Debt / FCF31.4xElevated debt burden
Current Ratio1.62Strong liquidity
Debt / Equity0.50Low leverage

Quarterly FCF Trend

+100.0% YoYImproving (+100.0%)

Free cash flow per quarter

Sector Comparison — Technology

FCF Margin ranked against sector peers

View all →

Detailed Metrics

Company NameSynopsys, Inc.
SectorTechnology
Free Cash Flow$1.3B
Revenue$7.1B
Net Income$1.3B
Operating Cash Flow$1.5B
Capital Expenditure$169.5M
FCF Margin6.5%
Cash Conversion Rate114.0%
Net Margin18.9%
Total Debt$14.3B
Total Cash$2.9B
Net Cash-$11.4B
Current Ratio1.62
Debt / Equity0.50
Debt / FCF31.4x
YoY FCF Growth+100.0%
Positive Quarters4 of 5
Trend DirectionImproving
Report DateOct 31, 2025
GradeF
Data SourceYahoo Finance