Synopsys

Synopsys enters 2025 with an exceptionally strong balance sheet. Before the Ansys deal, it carried practically no debt ($18M LT debt vs. $4.0B cash end of FY2024). After closing, the company did take on financing (total debt $10B) but also ended with net cash on the order of a few billion, so leverage remains reasonable.

The business generates massive free cash flow ($1.3B in 2024) and has ample liquidity to handle downturns. In the face of industry cyclicality, Synopsys easily weathered ~50% (fiscal) years, showing its resilience. In a stress scenario, Synopsys could cut discretionary spend or slow growth capex while maintaining operations.

The company’s fiscal controls and low fixed-cost base boost durability. Overall, its liquid assets far exceed near-term obligations and it is well-insulated against any macro shock, meriting a top-grade financial-strength rating.