Earnings Analysis: Synopsys Inc. (NASDAQ:SNPS)

Earnings Quality

SNPS-US’s net income margin for the last twelve months is around the peer median (10.4% vs. peer median of 10.8%). This average margin and relatively conservative accrual policy (17.3% vs. peer median of 11.3%) suggests possible understatement of its reported net income.

SNPS-US’s accruals over the last twelve months are positive suggesting a buildup of reserves. In addition, the level of accrual is greater than the peer median — which suggests a relatively strong buildup in reserves compared to its peers.

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