Is SYNOPSYS INC (SNPS) Halal?
Shariah Screening — 5 Standards
Based on financial data from October 2025
| Standard | Debt Ratio | Cash Ratio | Receivables | Income | Status |
|---|---|---|---|---|---|
| AAOIFI | 17.1% / 30% | 3.5% / 30% | 1.8% / 30% | 3.94% / 5% | ✓ HALAL |
| DJIM | 17.1% / 33% | 3.5% / 33% | 1.8% / 33% | 3.94% / 5% | ✓ HALAL |
| MSCI | 29.6% / 33% | 6.1% / 33% | 3.1% / 33% | 3.94% / 5% | ✓ HALAL |
| S&P | 17.1% / 33% | 3.5% / 33% | 1.8% / 33% | 3.94% / 5% | ✓ HALAL |
| FTSE | 29.6% / 33% | 6.1% / 33% | 3.1% / 50% | 3.94% / 5% | ✓ HALAL |
Financial Highlights
Profitability
| Gross Margin | 82.0% | |
| Operating Margin | 13.3% | |
| Net Margin | 13.8% | |
| Return on Equity (ROE) | 5.5% | |
| Return on Assets (ROA) | 2.0% |
Cash Flow & Balance Sheet
| Operating Cash Flow | $1.5B |
| Free Cash Flow | $1.3B |
| Total Debt | $14.3B |
| Debt-to-Equity | 35.6 |
| Current Ratio | 1.4 |
| Total Assets | $48.2B |
Price & Trading
| Last Close | $401.95 |
| 50-Day MA | $444.06 |
| 200-Day MA | $488.64 |
| Avg Volume | 2.1M |
| Beta | 1.2 |
|
52-Week Range
$365.74
| |
About SYNOPSYS INC (SNPS)
Synopsys, Inc. provides design IP solutions in the semiconductor and electronics industries. It operates in two segments, Design Automation and Design IP. The company offers Digital and Custom IC Design solution that provides digital design implementation solutions; Verification solution that offers virtual prototyping, static and formal verification, simulation, emulation, field programmable gate array (FPGA)-based prototyping, and debug solutions; FPGA design products that are programmed to perform specific functions; synopsys technology computer-aided design (TCAD), mask synthesis, and manufacturing analytic solutions; and AI-driven EDA solutions. It also provides pre-verified and silicon-proven IP solutions, logic libraries and embedded memories, processor and security solutions, IP Offerings for the automotive market, SOC infrastructure IP, data path and building block IP, and mathematical and floating-point components. Synopsys, Inc. has a strategic collaboration with Arm Holdings plc for development of AGI CPU that provides solutions across its full-stack design portfolio including EDA, interface IP, and hardware-assisted verification (HAV). The company was incorporated in 1986 and is headquartered in Sunnyvale, California.
Purification Calculator
As a halal stock with 3.94% impermissible income, you need to purify your dividends.
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Frequently Asked Questions
Is SYNOPSYS INC (SNPS) halal to invest in?
Based on our screening using AAOIFI Standard 21 (the strictest methodology), SYNOPSYS INC is Halal. The company passes all financial ratio thresholds for debt, cash, receivables, and impermissible income. We screen against all 5 major standards: AAOIFI, DJIM, MSCI, S&P, and FTSE.
What is SYNOPSYS INC's debt ratio?
SYNOPSYS INC's debt ratio is 17.1% under the AAOIFI standard (which uses market capitalization as the denominator). The AAOIFI threshold is 30%. Under MSCI and FTSE (which use total assets as the denominator), the debt ratio is 29.6%.
Does SYNOPSYS INC require dividend purification?
Yes, SYNOPSYS INC has an impermissible income ratio of 3.94%, which means 3.94% of any dividends received should be donated to charity as purification. This is because a small portion of the company's revenue comes from non-Shariah-compliant sources.
What are SYNOPSYS INC's key financial metrics?
SYNOPSYS INC has a market capitalization of $72.9B, trailing P/E ratio of 58.4, and revenue of $7.1B. The company maintains a gross margin of 82.0% and a net margin of 13.8%. Return on equity stands at 5.5%.
How often is the screening data updated?
Our screening data is updated regularly using the latest available financial statements and market data. Stock prices and market caps are refreshed frequently, while financial statements are updated quarterly when companies report earnings.
Disclaimer: HalalStockGuide.com provides Shariah compliance screening for educational and informational purposes only. This is not a fatwa, financial advice, or a recommendation to buy or sell any security. Screening results are based on publicly available financial data and established methodologies. Always consult a qualified Islamic scholar and a licensed financial advisor before making investment decisions.