SNPSNEUTRAL

SNPS Return on Equity (ROE) Analysis

3.7%

Updated 57h ago·SEC filings & market data

Key Takeaway

Return on Equity (ROE) measures how much profit a company generates for each dollar of shareholder equity, and at 3.8%, SNPS is earning less than 4 cents per dollar of equity.

Sector Performance

21th percentile

SNPS

3.7%

Sector Median

13.3%

Sector Avg

16.9%

Prior Period

3.8%(Aug 2026)

↓ Declining

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Deep Analysis

Return on Equity (ROE) measures how much profit a company generates for each dollar of shareholder equity, and at 3.8%, SNPS is earning less than 4 cents per dollar of equity.

This sits far below the sector median of 13.5%, placing the company in the 20th percentile among peers, meaning most competitors deliver a higher return. The trend is not available: both the year-over-year change and quarter-over-quarter change are listed as N/A, so there is no directional signal from recent history. The low ROE combined with a missing trend points to a persistent profitability weakness rather than a clear near-term recovery or deterioration, which raises caution for investors seeking efficient use of capital. However, because no trend data exists to confirm momentum, the risk is more about current low returns than a worsening path. This metric contradicts the overall NEUTRAL verdict by showing a clear lag versus the sector, though the lack of trend data prevents it from being a decisive bearish signal.

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: LOW (-67.1%), MAR (-69.0%), BMBL (-76.9%), WBA (-82.7%), NIO (-84.0%).

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Learn More About Return on Equity (ROE)

What Is Return on Equity (ROE) and Is Higher Always Better?

Return on equity ROE measures how efficiently a company generates profit from shareholder capital. Learn how to decompose ROE using DuPont analysis and why high leverage can make it dangerous—with Apple and JPMorgan examples.

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.