Stock Analysis on Net

Cadence Design Systems Inc. (NASDAQ:CDNS)

Adjusted Financial Ratios

Microsoft Excel

Adjusted Financial Ratios (Summary)

Cadence Design Systems Inc., adjusted financial ratios

Microsoft Excel
Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Activity Ratio
Total Asset Turnover
Reported 0.52 0.72 0.69 0.68 0.68
Adjusted 0.59 0.85 0.86 0.85 0.87
Liquidity Ratio
Current Ratio
Reported 2.93 1.24 1.27 1.77 1.86
Adjusted 6.36 2.14 2.60 4.12 4.23
Solvency Ratios
Debt to Equity
Reported 0.53 0.19 0.27 0.13 0.14
Adjusted 0.57 0.24 0.34 0.18 0.21
Debt to Capital
Reported 0.35 0.16 0.21 0.11 0.12
Adjusted 0.36 0.20 0.26 0.15 0.18
Financial Leverage
Reported 1.92 1.67 1.87 1.60 1.58
Adjusted 1.74 1.45 1.59 1.37 1.38
Profitability Ratios
Net Profit Margin
Reported 22.74% 25.46% 23.84% 23.29% 22.02%
Adjusted 19.52% 24.27% 21.92% 23.64% 25.29%
Return on Equity (ROE)
Reported 22.58% 30.58% 30.93% 25.39% 23.69%
Adjusted 20.13% 29.91% 30.05% 27.61% 30.46%
Return on Assets (ROA)
Reported 11.76% 18.36% 16.53% 15.87% 14.95%
Adjusted 11.54% 20.61% 18.87% 20.14% 22.04%

Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).

Financial ratio Description The company
Adjusted total asset turnover An activity ratio calculated as total revenue divided by adjusted total assets. Cadence Design Systems Inc. adjusted total asset turnover ratio deteriorated from 2022 to 2023 and from 2023 to 2024.
Adjusted current ratio A liquidity ratio calculated as adjusted current assets divided by adjusted current liabilities. Cadence Design Systems Inc. adjusted current ratio deteriorated from 2022 to 2023 but then improved from 2023 to 2024 exceeding 2022 level.
Adjusted debt-to-equity ratio A solvency ratio calculated as adjusted total debt divided by adjusted total equity. Cadence Design Systems Inc. adjusted debt-to-equity ratio improved from 2022 to 2023 but then deteriorated significantly from 2023 to 2024.
Adjusted debt-to-capital ratio A solvency ratio calculated as adjusted total debt divided by adjusted total debt plus adjusted total equity. Cadence Design Systems Inc. adjusted debt-to-capital ratio improved from 2022 to 2023 but then deteriorated significantly from 2023 to 2024.
Adjusted financial leverage A measure of financial leverage calculated as adjusted total assets divided by adjusted total equity.
Financial leverage is the extent to which a company can effect, through the use of debt, a proportional change in the return on common equity that is greater than a given proportional change in operating income.
Cadence Design Systems Inc. adjusted financial leverage ratio decreased from 2022 to 2023 but then increased from 2023 to 2024 exceeding 2022 level.
Adjusted net profit margin An indicator of profitability, calculated as adjusted net income divided by total revenue. Cadence Design Systems Inc. adjusted net profit margin ratio improved from 2022 to 2023 but then deteriorated significantly from 2023 to 2024.
Adjusted ROE A profitability ratio calculated as adjusted net income divided by adjusted total equity. Cadence Design Systems Inc. adjusted ROE deteriorated from 2022 to 2023 and from 2023 to 2024.
Adjusted ROA A profitability ratio calculated as adjusted net income divided by adjusted total assets. Cadence Design Systems Inc. adjusted ROA improved from 2022 to 2023 but then deteriorated significantly from 2023 to 2024.

Cadence Design Systems Inc., Financial Ratios: Reported vs. Adjusted


Adjusted Total Asset Turnover

Microsoft Excel
Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Reported
Selected Financial Data (US$ in thousands)
Revenue 4,641,264 4,089,986 3,561,718 2,988,244 2,682,891
Total assets 8,974,482 5,669,491 5,137,071 4,386,299 3,950,785
Activity Ratio
Total asset turnover1 0.52 0.72 0.69 0.68 0.68
Adjusted
Selected Financial Data (US$ in thousands)
Adjusted revenue2 4,729,890 4,071,879 3,688,690 3,089,413 2,807,929
Adjusted total assets3 7,998,233 4,794,043 4,285,670 3,626,221 3,221,362
Activity Ratio
Adjusted total asset turnover4 0.59 0.85 0.86 0.85 0.87

Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).

1 2024 Calculation
Total asset turnover = Revenue ÷ Total assets
= 4,641,264 ÷ 8,974,482 = 0.52

2 Adjusted revenue. See details »

3 Adjusted total assets. See details »

4 2024 Calculation
Adjusted total asset turnover = Adjusted revenue ÷ Adjusted total assets
= 4,729,890 ÷ 7,998,233 = 0.59

Activity ratio Description The company
Adjusted total asset turnover An activity ratio calculated as total revenue divided by adjusted total assets. Cadence Design Systems Inc. adjusted total asset turnover ratio deteriorated from 2022 to 2023 and from 2023 to 2024.

Adjusted Current Ratio

Microsoft Excel
Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Reported
Selected Financial Data (US$ in thousands)
Current assets 4,016,079 1,976,217 1,706,767 1,715,769 1,478,587
Current liabilities 1,370,105 1,590,867 1,347,696 971,225 796,808
Liquidity Ratio
Current ratio1 2.93 1.24 1.27 1.77 1.86
Adjusted
Selected Financial Data (US$ in thousands)
Adjusted current assets2 4,021,887 1,980,770 1,709,057 1,719,461 1,481,454
Adjusted current liabilities3 632,692 925,843 657,158 417,283 349,951
Liquidity Ratio
Adjusted current ratio4 6.36 2.14 2.60 4.12 4.23

Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).

1 2024 Calculation
Current ratio = Current assets ÷ Current liabilities
= 4,016,079 ÷ 1,370,105 = 2.93

2 Adjusted current assets. See details »

3 Adjusted current liabilities. See details »

4 2024 Calculation
Adjusted current ratio = Adjusted current assets ÷ Adjusted current liabilities
= 4,021,887 ÷ 632,692 = 6.36

Liquidity ratio Description The company
Adjusted current ratio A liquidity ratio calculated as adjusted current assets divided by adjusted current liabilities. Cadence Design Systems Inc. adjusted current ratio deteriorated from 2022 to 2023 but then improved from 2023 to 2024 exceeding 2022 level.

Adjusted Debt to Equity

Microsoft Excel
Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Reported
Selected Financial Data (US$ in thousands)
Total debt 2,476,183 649,056 748,078 347,588 346,793
Stockholders’ equity 4,673,578 3,404,271 2,745,113 2,740,675 2,493,018
Solvency Ratio
Debt to equity1 0.53 0.19 0.27 0.13 0.14
Adjusted
Selected Financial Data (US$ in thousands)
Adjusted total debt2 2,626,630 806,033 924,152 479,980 494,629
Adjusted stockholders’ equity3 4,584,972 3,304,198 2,690,533 2,644,862 2,331,143
Solvency Ratio
Adjusted debt to equity4 0.57 0.24 0.34 0.18 0.21

Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).

1 2024 Calculation
Debt to equity = Total debt ÷ Stockholders’ equity
= 2,476,183 ÷ 4,673,578 = 0.53

2 Adjusted total debt. See details »

3 Adjusted stockholders’ equity. See details »

4 2024 Calculation
Adjusted debt to equity = Adjusted total debt ÷ Adjusted stockholders’ equity
= 2,626,630 ÷ 4,584,972 = 0.57

Solvency ratio Description The company
Adjusted debt-to-equity ratio A solvency ratio calculated as adjusted total debt divided by adjusted total equity. Cadence Design Systems Inc. adjusted debt-to-equity ratio improved from 2022 to 2023 but then deteriorated significantly from 2023 to 2024.

Adjusted Debt to Capital

Microsoft Excel
Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Reported
Selected Financial Data (US$ in thousands)
Total debt 2,476,183 649,056 748,078 347,588 346,793
Total capital 7,149,761 4,053,327 3,493,191 3,088,263 2,839,811
Solvency Ratio
Debt to capital1 0.35 0.16 0.21 0.11 0.12
Adjusted
Selected Financial Data (US$ in thousands)
Adjusted total debt2 2,626,630 806,033 924,152 479,980 494,629
Adjusted total capital3 7,211,602 4,110,231 3,614,685 3,124,842 2,825,772
Solvency Ratio
Adjusted debt to capital4 0.36 0.20 0.26 0.15 0.18

Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).

1 2024 Calculation
Debt to capital = Total debt ÷ Total capital
= 2,476,183 ÷ 7,149,761 = 0.35

2 Adjusted total debt. See details »

3 Adjusted total capital. See details »

4 2024 Calculation
Adjusted debt to capital = Adjusted total debt ÷ Adjusted total capital
= 2,626,630 ÷ 7,211,602 = 0.36

Solvency ratio Description The company
Adjusted debt-to-capital ratio A solvency ratio calculated as adjusted total debt divided by adjusted total debt plus adjusted total equity. Cadence Design Systems Inc. adjusted debt-to-capital ratio improved from 2022 to 2023 but then deteriorated significantly from 2023 to 2024.

Adjusted Financial Leverage

Microsoft Excel
Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Reported
Selected Financial Data (US$ in thousands)
Total assets 8,974,482 5,669,491 5,137,071 4,386,299 3,950,785
Stockholders’ equity 4,673,578 3,404,271 2,745,113 2,740,675 2,493,018
Solvency Ratio
Financial leverage1 1.92 1.67 1.87 1.60 1.58
Adjusted
Selected Financial Data (US$ in thousands)
Adjusted total assets2 7,998,233 4,794,043 4,285,670 3,626,221 3,221,362
Adjusted stockholders’ equity3 4,584,972 3,304,198 2,690,533 2,644,862 2,331,143
Solvency Ratio
Adjusted financial leverage4 1.74 1.45 1.59 1.37 1.38

Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).

1 2024 Calculation
Financial leverage = Total assets ÷ Stockholders’ equity
= 8,974,482 ÷ 4,673,578 = 1.92

2 Adjusted total assets. See details »

3 Adjusted stockholders’ equity. See details »

4 2024 Calculation
Adjusted financial leverage = Adjusted total assets ÷ Adjusted stockholders’ equity
= 7,998,233 ÷ 4,584,972 = 1.74

Solvency ratio Description The company
Adjusted financial leverage A measure of financial leverage calculated as adjusted total assets divided by adjusted total equity.
Financial leverage is the extent to which a company can effect, through the use of debt, a proportional change in the return on common equity that is greater than a given proportional change in operating income.
Cadence Design Systems Inc. adjusted financial leverage ratio decreased from 2022 to 2023 but then increased from 2023 to 2024 exceeding 2022 level.

Adjusted Net Profit Margin

Microsoft Excel
Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Reported
Selected Financial Data (US$ in thousands)
Net income 1,055,484 1,041,144 848,952 695,955 590,644
Revenue 4,641,264 4,089,986 3,561,718 2,988,244 2,682,891
Profitability Ratio
Net profit margin1 22.74% 25.46% 23.84% 23.29% 22.02%
Adjusted
Selected Financial Data (US$ in thousands)
Adjusted net income2 923,058 988,274 808,547 730,235 710,119
Adjusted revenue3 4,729,890 4,071,879 3,688,690 3,089,413 2,807,929
Profitability Ratio
Adjusted net profit margin4 19.52% 24.27% 21.92% 23.64% 25.29%

Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).

1 2024 Calculation
Net profit margin = 100 × Net income ÷ Revenue
= 100 × 1,055,484 ÷ 4,641,264 = 22.74%

2 Adjusted net income. See details »

3 Adjusted revenue. See details »

4 2024 Calculation
Adjusted net profit margin = 100 × Adjusted net income ÷ Adjusted revenue
= 100 × 923,058 ÷ 4,729,890 = 19.52%

Profitability ratio Description The company
Adjusted net profit margin An indicator of profitability, calculated as adjusted net income divided by total revenue. Cadence Design Systems Inc. adjusted net profit margin ratio improved from 2022 to 2023 but then deteriorated significantly from 2023 to 2024.

Adjusted Return on Equity (ROE)

Microsoft Excel
Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Reported
Selected Financial Data (US$ in thousands)
Net income 1,055,484 1,041,144 848,952 695,955 590,644
Stockholders’ equity 4,673,578 3,404,271 2,745,113 2,740,675 2,493,018
Profitability Ratio
ROE1 22.58% 30.58% 30.93% 25.39% 23.69%
Adjusted
Selected Financial Data (US$ in thousands)
Adjusted net income2 923,058 988,274 808,547 730,235 710,119
Adjusted stockholders’ equity3 4,584,972 3,304,198 2,690,533 2,644,862 2,331,143
Profitability Ratio
Adjusted ROE4 20.13% 29.91% 30.05% 27.61% 30.46%

Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).

1 2024 Calculation
ROE = 100 × Net income ÷ Stockholders’ equity
= 100 × 1,055,484 ÷ 4,673,578 = 22.58%

2 Adjusted net income. See details »

3 Adjusted stockholders’ equity. See details »

4 2024 Calculation
Adjusted ROE = 100 × Adjusted net income ÷ Adjusted stockholders’ equity
= 100 × 923,058 ÷ 4,584,972 = 20.13%

Profitability ratio Description The company
Adjusted ROE A profitability ratio calculated as adjusted net income divided by adjusted total equity. Cadence Design Systems Inc. adjusted ROE deteriorated from 2022 to 2023 and from 2023 to 2024.

Adjusted Return on Assets (ROA)

Microsoft Excel
Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Reported
Selected Financial Data (US$ in thousands)
Net income 1,055,484 1,041,144 848,952 695,955 590,644
Total assets 8,974,482 5,669,491 5,137,071 4,386,299 3,950,785
Profitability Ratio
ROA1 11.76% 18.36% 16.53% 15.87% 14.95%
Adjusted
Selected Financial Data (US$ in thousands)
Adjusted net income2 923,058 988,274 808,547 730,235 710,119
Adjusted total assets3 7,998,233 4,794,043 4,285,670 3,626,221 3,221,362
Profitability Ratio
Adjusted ROA4 11.54% 20.61% 18.87% 20.14% 22.04%

Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).

1 2024 Calculation
ROA = 100 × Net income ÷ Total assets
= 100 × 1,055,484 ÷ 8,974,482 = 11.76%

2 Adjusted net income. See details »

3 Adjusted total assets. See details »

4 2024 Calculation
Adjusted ROA = 100 × Adjusted net income ÷ Adjusted total assets
= 100 × 923,058 ÷ 7,998,233 = 11.54%

Profitability ratio Description The company
Adjusted ROA A profitability ratio calculated as adjusted net income divided by adjusted total assets. Cadence Design Systems Inc. adjusted ROA improved from 2022 to 2023 but then deteriorated significantly from 2023 to 2024.