Synopsys, Inc. — Earnings Quality Grade F
SNPS · Technology
Major red flags
Screening Summary
Management Signals
Source: SEC EDGAR 8-K Item 5.02, with exhibit links when available
Financial Trends
Revenue & Net Income ($B)
Margins (%)
18-Point Screening
Revenue Quality
DSO surged by 24 days (56 → 80)
AR growth 64.5% exceeds revenue growth 15.1%
Revenue 15.1%, CFFO 7.9%. Cash follows revenue
Expense Quality
Inventory 0.9% vs COGS 30.4%. Normal
CapEx growth 21.5% vs revenue 15.1%. Normal
SG&A/Gross Profit = 34.0%. Normal
Gross margin 77.0%, change -2.7pp. Stable
Cash Flow Quality
CFFO/NI = 1.14. Profits backed by cash
FCF $1.3B, FCF/NI = 1.01
Accruals ratio = -0.4%. Low accruals
Cash $3.0B covers only 21% of debt $14.3B
Balance Sheet Health
Goodwill+Intangibles $39.6B = 140% of equity. Over 50%
Debt/EBITDA = 5.7x (>4x). Financial stress
Other assets grew 92.3% vs revenue 15.1%
No write-off data
Acquisition Risk
FCF after acquisitions positive
Goodwill+Intangibles surged 986% YoY
Manipulation Score
M-Score = -1.84 (grey zone)
Portfolio monitoring
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Beneish M-Score
Altman Z-Score
Generated from public financial data using forensic accounting frameworks. Not investment advice. Data: Yahoo Finance · 2026-04-25