Stock Analysis on Net
Stock Analysis on Net

Cadence Design Systems Inc. (NASDAQ:CDNS)

This company has been moved to the archive! The financial data has not been updated since July 24, 2023.

DuPont Analysis: Disaggregation of ROE, ROA, and Net Profit Margin
Quarterly Data

Microsoft Excel

Decomposing ROE involves expressing net income divided by shareholders’ equity as the product of component ratios.

Two-Component Disaggregation of ROE

Cadence Design Systems Inc., decomposition of ROE (quarterly data)

Microsoft Excel
ROE = ROA × Financial Leverage
Jun 30, 2023 30.59% = 17.26% × 1.77
Mar 31, 2023 29.09% = 16.54% × 1.76
Dec 31, 2022 30.93% = 16.53% × 1.87
Oct 1, 2022 28.99% = 15.80% × 1.83
Jul 2, 2022 29.53% = 17.77% × 1.66
Apr 2, 2022 26.96% = 16.93% × 1.59
Dec 31, 2021 25.39% = 15.87% × 1.60
Oct 2, 2021 26.34% = 16.45% × 1.60
Jul 3, 2021 26.96% = 16.46% × 1.64
Apr 3, 2021 25.72% = 16.35% × 1.57
Dec 31, 2020 23.69% = 14.95% × 1.58
Sep 26, 2020 44.94% = 26.00% × 1.73
Jun 27, 2020 45.04% = 25.41% × 1.77
Mar 28, 2020 45.99% = 26.34% × 1.75
Dec 28, 2019 47.03% = 29.46% × 1.60
Sep 28, 2019 28.90% = 16.07% × 1.80
Jun 29, 2019 29.75% = 16.29% × 1.83
Mar 30, 2019 28.81% = 15.45% × 1.86
Dec 29, 2018 26.84% = 14.01% × 1.92
Sep 29, 2018 — = — × 1.81
Jun 30, 2018 — = — × 2.13
Mar 31, 2018 — = — × 2.18

Based on: 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-10-01), 10-Q (reporting date: 2022-07-02), 10-Q (reporting date: 2022-04-02), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-10-02), 10-Q (reporting date: 2021-07-03), 10-Q (reporting date: 2021-04-03), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-26), 10-Q (reporting date: 2020-06-27), 10-Q (reporting date: 2020-03-28), 10-K (reporting date: 2019-12-28), 10-Q (reporting date: 2019-09-28), 10-Q (reporting date: 2019-06-29), 10-Q (reporting date: 2019-03-30), 10-K (reporting date: 2018-12-29), 10-Q (reporting date: 2018-09-29), 10-Q (reporting date: 2018-06-30), 10-Q (reporting date: 2018-03-31).

The primary reason for the increase in return on equity ratio (ROE) over Q2 2023 is the increase in profitability measured by return on assets ratio (ROA).

Three-Component Disaggregation of ROE

Cadence Design Systems Inc., decomposition of ROE (quarterly data)

Microsoft Excel
ROE = Net Profit Margin × Asset Turnover × Financial Leverage
Jun 30, 2023 30.59% = 23.41% × 0.74 × 1.77
Mar 31, 2023 29.09% = 23.23% × 0.71 × 1.76
Dec 31, 2022 30.93% = 23.84% × 0.69 × 1.87
Oct 1, 2022 28.99% = 22.86% × 0.69 × 1.83
Jul 2, 2022 29.53% = 23.61% × 0.75 × 1.66
Apr 2, 2022 26.96% = 23.59% × 0.72 × 1.59
Dec 31, 2021 25.39% = 23.29% × 0.68 × 1.60
Oct 2, 2021 26.34% = 23.30% × 0.71 × 1.60
Jul 3, 2021 26.96% = 23.47% × 0.70 × 1.64
Apr 3, 2021 25.72% = 23.34% × 0.70 × 1.57
Dec 31, 2020 23.69% = 22.02% × 0.68 × 1.58
Sep 26, 2020 44.94% = 42.68% × 0.61 × 1.73
Jun 27, 2020 45.04% = 41.73% × 0.61 × 1.77
Mar 28, 2020 45.99% = 41.74% × 0.63 × 1.75
Dec 28, 2019 47.03% = 42.33% × 0.70 × 1.60
Sep 28, 2019 28.90% = 18.54% × 0.87 × 1.80
Jun 29, 2019 29.75% = 18.83% × 0.86 × 1.83
Mar 30, 2019 28.81% = 17.90% × 0.86 × 1.86
Dec 29, 2018 26.84% = 16.17% × 0.87 × 1.92
Sep 29, 2018 — = — × — × 1.81
Jun 30, 2018 — = — × — × 2.13
Mar 31, 2018 — = — × — × 2.18

Based on: 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-10-01), 10-Q (reporting date: 2022-07-02), 10-Q (reporting date: 2022-04-02), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-10-02), 10-Q (reporting date: 2021-07-03), 10-Q (reporting date: 2021-04-03), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-26), 10-Q (reporting date: 2020-06-27), 10-Q (reporting date: 2020-03-28), 10-K (reporting date: 2019-12-28), 10-Q (reporting date: 2019-09-28), 10-Q (reporting date: 2019-06-29), 10-Q (reporting date: 2019-03-30), 10-K (reporting date: 2018-12-29), 10-Q (reporting date: 2018-09-29), 10-Q (reporting date: 2018-06-30), 10-Q (reporting date: 2018-03-31).

The primary reason for the increase in return on equity ratio (ROE) over Q2 2023 is the increase in efficiency measured by asset turnover ratio.

Five-Component Disaggregation of ROE

Cadence Design Systems Inc., decomposition of ROE (quarterly data)

Microsoft Excel
ROE = Tax Burden × Interest Burden × EBIT Margin × Asset Turnover × Financial Leverage
Jun 30, 2023 30.59% = 0.82 × 0.97 × 29.35% × 0.74 × 1.77
Mar 31, 2023 29.09% = 0.81 × 0.97 × 29.47% × 0.71 × 1.76
Dec 31, 2022 30.93% = 0.81 × 0.98 × 29.99% × 0.69 × 1.87
Oct 1, 2022 28.99% = 0.76 × 0.98 × 30.48% × 0.69 × 1.83
Jul 2, 2022 29.53% = 0.80 × 0.98 × 29.91% × 0.75 × 1.66
Apr 2, 2022 26.96% = 0.85 × 0.98 × 28.31% × 0.72 × 1.59
Dec 31, 2021 25.39% = 0.91 × 0.98 × 26.28% × 0.68 × 1.60
Oct 2, 2021 26.34% = 0.91 × 0.98 × 26.16% × 0.71 × 1.60
Jul 3, 2021 26.96% = 0.92 × 0.98 × 26.16% × 0.70 × 1.64
Apr 3, 2021 25.72% = 0.93 × 0.97 × 25.90% × 0.70 × 1.57
Dec 31, 2020 23.69% = 0.93 × 0.97 × 24.36% × 0.68 × 1.58
Sep 26, 2020 44.94% = 1.95 × 0.96 × 22.68% × 0.61 × 1.73
Jun 27, 2020 45.04% = 2.02 × 0.96 × 21.43% × 0.61 × 1.77
Mar 28, 2020 45.99% = 2.06 × 0.96 × 20.99% × 0.63 × 1.75
Dec 28, 2019 47.03% = 2.06 × 0.96 × 21.31% × 0.70 × 1.60
Sep 28, 2019 28.90% = 0.89 × 0.96 × 21.72% × 0.87 × 1.80
Jun 29, 2019 29.75% = 0.92 × 0.96 × 21.46% × 0.86 × 1.83
Mar 30, 2019 28.81% = 0.92 × 0.95 × 20.39% × 0.86 × 1.86
Dec 29, 2018 26.84% = 0.92 × 0.94 × 18.69% × 0.87 × 1.92
Sep 29, 2018 — = — × — × — × — × 1.81
Jun 30, 2018 — = — × — × — × — × 2.13
Mar 31, 2018 — = — × — × — × — × 2.18

Based on: 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-10-01), 10-Q (reporting date: 2022-07-02), 10-Q (reporting date: 2022-04-02), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-10-02), 10-Q (reporting date: 2021-07-03), 10-Q (reporting date: 2021-04-03), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-26), 10-Q (reporting date: 2020-06-27), 10-Q (reporting date: 2020-03-28), 10-K (reporting date: 2019-12-28), 10-Q (reporting date: 2019-09-28), 10-Q (reporting date: 2019-06-29), 10-Q (reporting date: 2019-03-30), 10-K (reporting date: 2018-12-29), 10-Q (reporting date: 2018-09-29), 10-Q (reporting date: 2018-06-30), 10-Q (reporting date: 2018-03-31).

The primary reason for the increase in return on equity ratio (ROE) over Q2 2023 is the increase in efficiency measured by asset turnover ratio.

Two-Component Disaggregation of ROA

Cadence Design Systems Inc., decomposition of ROA (quarterly data)

Microsoft Excel
ROA = Net Profit Margin × Asset Turnover
Jun 30, 2023 17.26% = 23.41% × 0.74
Mar 31, 2023 16.54% = 23.23% × 0.71
Dec 31, 2022 16.53% = 23.84% × 0.69
Oct 1, 2022 15.80% = 22.86% × 0.69
Jul 2, 2022 17.77% = 23.61% × 0.75
Apr 2, 2022 16.93% = 23.59% × 0.72
Dec 31, 2021 15.87% = 23.29% × 0.68
Oct 2, 2021 16.45% = 23.30% × 0.71
Jul 3, 2021 16.46% = 23.47% × 0.70
Apr 3, 2021 16.35% = 23.34% × 0.70
Dec 31, 2020 14.95% = 22.02% × 0.68
Sep 26, 2020 26.00% = 42.68% × 0.61
Jun 27, 2020 25.41% = 41.73% × 0.61
Mar 28, 2020 26.34% = 41.74% × 0.63
Dec 28, 2019 29.46% = 42.33% × 0.70
Sep 28, 2019 16.07% = 18.54% × 0.87
Jun 29, 2019 16.29% = 18.83% × 0.86
Mar 30, 2019 15.45% = 17.90% × 0.86
Dec 29, 2018 14.01% = 16.17% × 0.87
Sep 29, 2018 — = — × —
Jun 30, 2018 — = — × —
Mar 31, 2018 — = — × —

Based on: 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-10-01), 10-Q (reporting date: 2022-07-02), 10-Q (reporting date: 2022-04-02), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-10-02), 10-Q (reporting date: 2021-07-03), 10-Q (reporting date: 2021-04-03), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-26), 10-Q (reporting date: 2020-06-27), 10-Q (reporting date: 2020-03-28), 10-K (reporting date: 2019-12-28), 10-Q (reporting date: 2019-09-28), 10-Q (reporting date: 2019-06-29), 10-Q (reporting date: 2019-03-30), 10-K (reporting date: 2018-12-29), 10-Q (reporting date: 2018-09-29), 10-Q (reporting date: 2018-06-30), 10-Q (reporting date: 2018-03-31).

The primary reason for the increase in return on assets ratio (ROA) over Q2 2023 is the increase in asset turnover ratio.

Four-Component Disaggregation of ROA

Cadence Design Systems Inc., decomposition of ROA (quarterly data)

Microsoft Excel
ROA = Tax Burden × Interest Burden × EBIT Margin × Asset Turnover
Jun 30, 2023 17.26% = 0.82 × 0.97 × 29.35% × 0.74
Mar 31, 2023 16.54% = 0.81 × 0.97 × 29.47% × 0.71
Dec 31, 2022 16.53% = 0.81 × 0.98 × 29.99% × 0.69
Oct 1, 2022 15.80% = 0.76 × 0.98 × 30.48% × 0.69
Jul 2, 2022 17.77% = 0.80 × 0.98 × 29.91% × 0.75
Apr 2, 2022 16.93% = 0.85 × 0.98 × 28.31% × 0.72
Dec 31, 2021 15.87% = 0.91 × 0.98 × 26.28% × 0.68
Oct 2, 2021 16.45% = 0.91 × 0.98 × 26.16% × 0.71
Jul 3, 2021 16.46% = 0.92 × 0.98 × 26.16% × 0.70
Apr 3, 2021 16.35% = 0.93 × 0.97 × 25.90% × 0.70
Dec 31, 2020 14.95% = 0.93 × 0.97 × 24.36% × 0.68
Sep 26, 2020 26.00% = 1.95 × 0.96 × 22.68% × 0.61
Jun 27, 2020 25.41% = 2.02 × 0.96 × 21.43% × 0.61
Mar 28, 2020 26.34% = 2.06 × 0.96 × 20.99% × 0.63
Dec 28, 2019 29.46% = 2.06 × 0.96 × 21.31% × 0.70
Sep 28, 2019 16.07% = 0.89 × 0.96 × 21.72% × 0.87
Jun 29, 2019 16.29% = 0.92 × 0.96 × 21.46% × 0.86
Mar 30, 2019 15.45% = 0.92 × 0.95 × 20.39% × 0.86
Dec 29, 2018 14.01% = 0.92 × 0.94 × 18.69% × 0.87
Sep 29, 2018 — = — × — × — × —
Jun 30, 2018 — = — × — × — × —
Mar 31, 2018 — = — × — × — × —

Based on: 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-10-01), 10-Q (reporting date: 2022-07-02), 10-Q (reporting date: 2022-04-02), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-10-02), 10-Q (reporting date: 2021-07-03), 10-Q (reporting date: 2021-04-03), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-26), 10-Q (reporting date: 2020-06-27), 10-Q (reporting date: 2020-03-28), 10-K (reporting date: 2019-12-28), 10-Q (reporting date: 2019-09-28), 10-Q (reporting date: 2019-06-29), 10-Q (reporting date: 2019-03-30), 10-K (reporting date: 2018-12-29), 10-Q (reporting date: 2018-09-29), 10-Q (reporting date: 2018-06-30), 10-Q (reporting date: 2018-03-31).

The primary reason for the increase in return on assets ratio (ROA) over Q2 2023 is the increase in efficiency measured by asset turnover ratio.

Disaggregation of Net Profit Margin

Cadence Design Systems Inc., decomposition of net profit margin ratio (quarterly data)

Microsoft Excel
Net Profit Margin = Tax Burden × Interest Burden × EBIT Margin
Jun 30, 2023 23.41% = 0.82 × 0.97 × 29.35%
Mar 31, 2023 23.23% = 0.81 × 0.97 × 29.47%
Dec 31, 2022 23.84% = 0.81 × 0.98 × 29.99%
Oct 1, 2022 22.86% = 0.76 × 0.98 × 30.48%
Jul 2, 2022 23.61% = 0.80 × 0.98 × 29.91%
Apr 2, 2022 23.59% = 0.85 × 0.98 × 28.31%
Dec 31, 2021 23.29% = 0.91 × 0.98 × 26.28%
Oct 2, 2021 23.30% = 0.91 × 0.98 × 26.16%
Jul 3, 2021 23.47% = 0.92 × 0.98 × 26.16%
Apr 3, 2021 23.34% = 0.93 × 0.97 × 25.90%
Dec 31, 2020 22.02% = 0.93 × 0.97 × 24.36%
Sep 26, 2020 42.68% = 1.95 × 0.96 × 22.68%
Jun 27, 2020 41.73% = 2.02 × 0.96 × 21.43%
Mar 28, 2020 41.74% = 2.06 × 0.96 × 20.99%
Dec 28, 2019 42.33% = 2.06 × 0.96 × 21.31%
Sep 28, 2019 18.54% = 0.89 × 0.96 × 21.72%
Jun 29, 2019 18.83% = 0.92 × 0.96 × 21.46%
Mar 30, 2019 17.90% = 0.92 × 0.95 × 20.39%
Dec 29, 2018 16.17% = 0.92 × 0.94 × 18.69%
Sep 29, 2018 — = — × — × —
Jun 30, 2018 — = — × — × —
Mar 31, 2018 — = — × — × —

Based on: 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-10-01), 10-Q (reporting date: 2022-07-02), 10-Q (reporting date: 2022-04-02), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-10-02), 10-Q (reporting date: 2021-07-03), 10-Q (reporting date: 2021-04-03), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-26), 10-Q (reporting date: 2020-06-27), 10-Q (reporting date: 2020-03-28), 10-K (reporting date: 2019-12-28), 10-Q (reporting date: 2019-09-28), 10-Q (reporting date: 2019-06-29), 10-Q (reporting date: 2019-03-30), 10-K (reporting date: 2018-12-29), 10-Q (reporting date: 2018-09-29), 10-Q (reporting date: 2018-06-30), 10-Q (reporting date: 2018-03-31).

The primary reason for the increase in net profit margin ratio over Q2 2023 is the increase in effect of taxes measured by tax burden ratio.