Synopsys

Halal Rating :
Comfortable
Last Price $482
Market Cap $74.67b
1D Change

-0.49 %

1 Year Change

-15.55 %

Next Earnings Date

Yet to be announced

Company Overview

Synopsys, Inc. is a global leader in electronic design automation (EDA) software, semiconductor IP, and software security and quality solutions. The company provides tools and services that help engineers design and test advanced integrated circuits, develop software applications, and enhance software security.

Their products are essential for the development of advanced electronics in various sectors including artificial intelligence, autonomous vehicles, 5G, and cloud computing. The company's core business involves selling software licenses, maintenance, and professional services to semiconductor and electronics companies.

Revenue Sources

Pass

Based on detailed examination of Synopsys' revenue streams from their SEC filings and financial reports, the company generates its revenue primarily from software licenses, maintenance, and professional services in the electronic design automation industry. These core business activities are halal as they involve the creation and sale of legitimate products and services that provide real value to customers.

There is no evidence of revenue from gambling, alcohol, tobacco, pornography, or other haram sources in their financial statements or business operations.

Reliance on Interest

Reporting Date Total Revenue Total Expense Interest Income Interest Expense Interest Income Ratio Interest Expense Ratio
Jan. 31, 2025 $1.46b $1.2b - - 0.00% 0.00%
Oct. 31, 2024 $1.5b $1.19b - - 0.00% 0.00%
July 31, 2024 $1.53b $1.17b - - 0.00% 0.00%
April 30, 2024 $1.45b $1.12b - - 0.00% 0.00%

Analysis of the company's financial statements over the past four quarters shows zero interest income and zero interest expense. The company maintains a strong cash position and operates without significant debt financing. The lack of interest-based income or expense in their operations indicates that interest is not material to their business model.

Operational Ethics

Pass

After reviewing the company's global operations and partnerships, we found no evidence of significant ongoing associations with the state of Israel or direct collaboration with the Chinese Communist Party that would raise concerns about human rights violations. While the company operates globally, including in China, there is no clear evidence of problematic partnerships or arrangements that would violate this criterion.

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