Cadence Design Systems Inc., adjustment to net income

US$ in thousands

12 months ended:	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 28, 2019
Net income (as reported)	1,041,144)	848,952)	695,955)	590,644)	988,979)
Add: Unrealized gains on investments	132)	—)	—)	—)	—)
Net income (adjusted)	1,041,276)	848,952)	695,955)	590,644)	988,979)

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Cadence Design Systems Inc., adjusted profitability ratios

	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 28, 2019
Net Profit Margin
Reported net profit margin	25.46%	23.84%	23.29%	22.02%	42.33%
Adjusted net profit margin	25.46%	23.84%	23.29%	22.02%	42.33%
Return on Equity (ROE)
Reported ROE	30.58%	30.93%	25.39%	23.69%	47.03%
Adjusted ROE	30.59%	30.93%	25.39%	23.69%	47.03%
Return on Assets (ROA)
Reported ROA	18.36%	16.53%	15.87%	14.95%	29.46%
Adjusted ROA	18.37%	16.53%	15.87%	14.95%	29.46%

Profitability ratio	Description	The company
Adjusted net profit margin	An indicator of profitability, calculated as adjusted net income divided by revenue.	Cadence Design Systems Inc. adjusted net profit margin ratio improved from 2021 to 2022 and from 2022 to 2023.
Adjusted ROE	A profitability ratio calculated as adjusted net income divided by shareholders’ equity.	Cadence Design Systems Inc. adjusted ROE improved from 2021 to 2022 but then slightly deteriorated from 2022 to 2023.
Adjusted ROA	A profitability ratio calculated as adjusted net income divided by total assets.	Cadence Design Systems Inc. adjusted ROA improved from 2021 to 2022 and from 2022 to 2023.

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	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 28, 2019
As Reported
Selected Financial Data (US$ in thousands)
Net income	1,041,144)	848,952)	695,955)	590,644)	988,979)
Revenue	4,089,986)	3,561,718)	2,988,244)	2,682,891)	2,336,319)
Profitability Ratio
Net profit margin¹	25.46%	23.84%	23.29%	22.02%	42.33%
Adjusted: Mark to Market Available-for-sale Securities
Selected Financial Data (US$ in thousands)
Adjusted net income	1,041,276)	848,952)	695,955)	590,644)	988,979)
Revenue	4,089,986)	3,561,718)	2,988,244)	2,682,891)	2,336,319)
Profitability Ratio
Adjusted net profit margin²	25.46%	23.84%	23.29%	22.02%	42.33%

2023 Calculations

¹ Net profit margin = 100 × Net income ÷ Revenue
= 100 × 1,041,144 ÷ 4,089,986 = 25.46%

² Adjusted net profit margin = 100 × Adjusted net income ÷ Revenue
= 100 × 1,041,276 ÷ 4,089,986 = 25.46%

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Profitability ratio	Description	The company
Adjusted net profit margin	An indicator of profitability, calculated as adjusted net income divided by revenue.	Cadence Design Systems Inc. adjusted net profit margin ratio improved from 2021 to 2022 and from 2022 to 2023.

	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 28, 2019
As Reported
Selected Financial Data (US$ in thousands)
Net income	1,041,144)	848,952)	695,955)	590,644)	988,979)
Stockholders’ equity	3,404,271)	2,745,113)	2,740,675)	2,493,018)	2,102,894)
Profitability Ratio
ROE¹	30.58%	30.93%	25.39%	23.69%	47.03%
Adjusted: Mark to Market Available-for-sale Securities
Selected Financial Data (US$ in thousands)
Adjusted net income	1,041,276)	848,952)	695,955)	590,644)	988,979)
Stockholders’ equity	3,404,271)	2,745,113)	2,740,675)	2,493,018)	2,102,894)
Profitability Ratio
Adjusted ROE²	30.59%	30.93%	25.39%	23.69%	47.03%

2023 Calculations

¹ ROE = 100 × Net income ÷ Stockholders’ equity
= 100 × 1,041,144 ÷ 3,404,271 = 30.58%

² Adjusted ROE = 100 × Adjusted net income ÷ Stockholders’ equity
= 100 × 1,041,276 ÷ 3,404,271 = 30.59%

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Profitability ratio	Description	The company
Adjusted ROE	A profitability ratio calculated as adjusted net income divided by shareholders’ equity.	Cadence Design Systems Inc. adjusted ROE improved from 2021 to 2022 but then slightly deteriorated from 2022 to 2023.

	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 28, 2019
As Reported
Selected Financial Data (US$ in thousands)
Net income	1,041,144)	848,952)	695,955)	590,644)	988,979)
Total assets	5,669,491)	5,137,071)	4,386,299)	3,950,785)	3,357,225)
Profitability Ratio
ROA¹	18.36%	16.53%	15.87%	14.95%	29.46%
Adjusted: Mark to Market Available-for-sale Securities
Selected Financial Data (US$ in thousands)
Adjusted net income	1,041,276)	848,952)	695,955)	590,644)	988,979)
Total assets	5,669,491)	5,137,071)	4,386,299)	3,950,785)	3,357,225)
Profitability Ratio
Adjusted ROA²	18.37%	16.53%	15.87%	14.95%	29.46%

2023 Calculations

¹ ROA = 100 × Net income ÷ Total assets
= 100 × 1,041,144 ÷ 5,669,491 = 18.36%

² Adjusted ROA = 100 × Adjusted net income ÷ Total assets
= 100 × 1,041,276 ÷ 5,669,491 = 18.37%

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Profitability ratio	Description	The company
Adjusted ROA	A profitability ratio calculated as adjusted net income divided by total assets.	Cadence Design Systems Inc. adjusted ROA improved from 2021 to 2022 and from 2022 to 2023.

Cadence Design Systems Inc. (NASDAQ:CDNS)

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