SNPSNEUTRAL

Return on Equity (ROE)

3.8%

Updated 30h ago

Sector Performance

19th percentile

SNPS

3.8%

Sector Median

13.8%

Sector Avg

31.4%

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Deep Analysis

Return on Equity (ROE) measures how much profit a company generates for each dollar of shareholders' equity; SNPS’s current ROE of 3.8% means it earns less than 4 cents per dollar of equity.

This is well below the sector median of 13.8%, placing the company in the 19th percentile among its peers. The trend data is not available—both the year-over-year change and quarter-over-quarter change are marked as N/A, and there is no reported historical trend over the last eight quarters. The combination of a low ROE level with no trend information offers limited insight; it signals weak current profitability relative to peers, but without directional data the risk or opportunity cannot be clearly assessed. This metric supports the overall NEUTRAL verdict because the below-median ROE suggests underperformance, yet the absence of trend prevents a stronger bearish or bullish stance.

Frequently Asked Questions

What does the Return on Equity (ROE) tell investors about SNPS?

ROE measures how effectively management turns equity into profit. Consistently above 15% is typically considered strong. Negative equity distorts this metric.

How is the Return on Equity (ROE) calculated?

Return on Equity (ROE) is calculated as: Net Income / Shareholders' Equity.

Who are SNPS's closest peers by Return on Equity (ROE)?

The closest peers by Return on Equity (ROE) include: MRNA (-36.6%), FICO (-37.3%), XRAY (-37.7%), VRSN (-38.3%), MSCI (-45.3%).

The Formula

Net Income / Shareholders' Equity

Why It Matters

ROE measures how effectively management turns equity into profit. Consistently above 15% is typically considered strong. Negative equity distorts this metric.