Forensic Analysis · Technology / Software · as of Aug 7, 2026
Synopsys Inc (SNPS)
A forensic read on Synopsys Inc built from its complete SEC filings — financial-health screens, earnings quality, red flags and a price-aware rating. Reproducible math, not opinion.
C · Mixed — selective
Forensic grade
Safe
Financial health
5.2
Distress distance
Clean
Earnings quality
4
Forensic signals
101.9
P / E (ttm)
4.7%
ROE
$79.4B
Market cap
15.1%
Revenue growth
This free snapshot doesn't read filing or proxy text, so the auditor-quality and governance checks that can lower a grade were not evaluated (red flags, auditor quality, say on pay, board independence). Those checks only ever lower a grade, so the full analysis can land below the grade above but never above it — treat it as the most favourable reading, not the settled one.
Synopsys Inc earns a C (Mixed — selective) forensic quality grade, and its balance-sheet distress test reads 5.2, placing it in the Safe zone. 4 forensic signals were flagged in its latest SEC filings, led by accruals ratio (% of noa).
What the filings flag
+153.3%
FY2024→FY2025
Accruals ratio (% of NOA).Net operating assets grew +153.3% relative to their own average in FY2025 — scaled by NOA itself, not total assets (see the Forensic Screens card's differently-scaled Sloan Accrual Ratio for that read). Accruals are building sharply — a large slice of profit sits in operating assets, not cash; Richardson/Sloan link high accruals to weaker future returns as they reverse. The build is led by receivables up +61% against revenue +15% and payables paid down 21% against +30% in cost of sales. The cash-flow cross-check is more mixed: reported earnings ran in line with operating cash by 1% of net operating assets, diverging from the balance-sheet accrual read.
2.0%
FY2025
Return on invested capital.Return on invested capital is 2.0% in the latest fiscal year and slipping from 19% — well below its ~10% cost of capital, so reinvested dollars may be destroying value, not building it.
+1.9%/yr
FY2022–FY2025
Share-count dilution.Diluted share count changed +6% over the last 3 years to FY2025 (+1.9%/yr). The count is growing: more stock was issued than repurchased over this window, so aggregate results grew faster than their per-share equivalents. That's ~1.9% shaved off per-share growth every year — total profit has to grow that much just to keep earnings-per-share flat, and a stake held since FY2022 has been diluted ~6%.
stopped
FY2023→FY2025
Shareholder returns — halted.Capital returns have STOPPED — $1.2B of buybacks + dividends in FY2023, but ~$0 in FY2025. A halt usually means the company is conserving cash.
Key fundamentals
Latest Revenue$7.05B
Revenue Growth YoY+15.1%
Revenue CAGR (3yr)+11.6%
Net Margin18.9%
Free Cash Flow$1.35B
Return on Equity4.7%
Debt / Equity0.48x
The forensic grade and screens above are free — no account needed. Want the AI investment read on top — the 0–100 rating, thesis, bull-vs-bear, red flags and the 12-month scenario, written from Synopsys Inc's actual 10-K/10-Q/8-K filings?