Stock Analysis on Net

Cadence Design Systems Inc. (NASDAQ:CDNS)

Analysis of Solvency Ratios

Microsoft Excel

Solvency Ratios (Summary)

Cadence Design Systems Inc., solvency ratios

Microsoft Excel
Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Debt Ratios
Debt to equity 0.53 0.19 0.27 0.13 0.14
Debt to equity (including operating lease liability) 0.56 0.24 0.34 0.18 0.20
Debt to capital 0.35 0.16 0.21 0.11 0.12
Debt to capital (including operating lease liability) 0.36 0.19 0.25 0.15 0.17
Debt to assets 0.28 0.11 0.15 0.08 0.09
Debt to assets (including operating lease liability) 0.29 0.14 0.18 0.11 0.13
Financial leverage 1.92 1.67 1.87 1.60 1.58
Coverage Ratios
Interest coverage 19.37 36.43 46.58 46.26 31.50
Fixed charge coverage 11.13 14.79 15.50 13.77 11.46

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).

Solvency ratio Description The company
Debt to equity ratio A solvency ratio calculated as total debt divided by total shareholders’ equity. Cadence Design Systems Inc. debt to equity ratio improved from 2022 to 2023 but then deteriorated significantly from 2023 to 2024.
Debt to equity ratio (including operating lease liability) A solvency ratio calculated as total debt (including operating lease liability) divided by total shareholders’ equity. Cadence Design Systems Inc. debt to equity ratio (including operating lease liability) improved from 2022 to 2023 but then deteriorated significantly from 2023 to 2024.
Debt to capital ratio A solvency ratio calculated as total debt divided by total debt plus shareholders’ equity. Cadence Design Systems Inc. debt to capital ratio improved from 2022 to 2023 but then deteriorated significantly from 2023 to 2024.
Debt to capital ratio (including operating lease liability) A solvency ratio calculated as total debt (including operating lease liability) divided by total debt (including operating lease liability) plus shareholders’ equity. Cadence Design Systems Inc. debt to capital ratio (including operating lease liability) improved from 2022 to 2023 but then deteriorated significantly from 2023 to 2024.
Debt to assets ratio A solvency ratio calculated as total debt divided by total assets. Cadence Design Systems Inc. debt to assets ratio improved from 2022 to 2023 but then deteriorated significantly from 2023 to 2024.
Debt to assets ratio (including operating lease liability) A solvency ratio calculated as total debt (including operating lease liability) divided by total assets. Cadence Design Systems Inc. debt to assets ratio (including operating lease liability) improved from 2022 to 2023 but then deteriorated significantly from 2023 to 2024.
Financial leverage ratio A solvency ratio calculated as total assets divided by total shareholders’ equity. Cadence Design Systems Inc. financial leverage ratio decreased from 2022 to 2023 but then increased from 2023 to 2024 exceeding 2022 level.

Solvency ratio Description The company
Interest coverage ratio A solvency ratio calculated as EBIT divided by interest payments. Cadence Design Systems Inc. interest coverage ratio deteriorated from 2022 to 2023 and from 2023 to 2024.
Fixed charge coverage ratio A solvency ratio calculated as earnings before fixed charges and tax divided by fixed charges. Cadence Design Systems Inc. fixed charge coverage ratio deteriorated from 2022 to 2023 and from 2023 to 2024.

Debt to Equity

Cadence Design Systems Inc., debt to equity calculation, comparison to benchmarks

Microsoft Excel
Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Selected Financial Data (US$ in thousands)
Revolving credit facility 100,000
Current portion of long-term debt 349,285
Long-term debt, excluding current portion 2,476,183 299,771 648,078 347,588 346,793
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
Benchmarks
Debt to Equity, Competitors2
Accenture PLC 0.04 0.01 0.00 0.00 0.00
Adobe Inc. 0.40 0.22 0.29 0.28 0.31
CrowdStrike Holdings Inc. 0.32 0.51 0.72 0.85 0.00
International Business Machines Corp. 2.01 2.51 2.32 2.74 2.99
Intuit Inc. 0.33 0.35 0.42 0.21 0.66
Microsoft Corp. 0.29 0.31 0.39 0.50 0.62
Oracle Corp. 9.98 84.33 16.08 5.93
Palantir Technologies Inc. 0.00 0.00 0.00 0.00 0.13
Palo Alto Networks Inc. 0.19 1.14 17.51 5.08 2.80
Salesforce Inc. 0.17 0.20 0.19 0.07 0.09
ServiceNow Inc. 0.15 0.20 0.30 0.43 0.58
Synopsys Inc. 0.00 0.00 0.00 0.02 0.03
Debt to Equity, Sector
Software & Services 0.64 0.71 0.83 0.95
Debt to Equity, Industry
Information Technology 0.66 0.70 0.83 0.97

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 Click competitor name to see calculations.

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

Debt to Equity (including Operating Lease Liability)

Cadence Design Systems Inc., debt to equity (including operating lease liability) calculation, comparison to benchmarks

Microsoft Excel
Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Selected Financial Data (US$ in thousands)
Revolving credit facility 100,000
Current portion of long-term debt 349,285
Long-term debt, excluding current portion 2,476,183 299,771 648,078 347,588 346,793
Total debt 2,476,183 649,056 748,078 347,588 346,793
Current operating lease liabilities (recorded in Accounts payable and accrued liabilities) 41,554 41,619 36,737 25,271 33,920
Long-term operating lease liabilities 108,893 115,358 139,337 107,121 113,916
Total debt (including operating lease liability) 2,626,630 806,033 924,152 479,980 494,629
 
Stockholders’ equity 4,673,578 3,404,271 2,745,113 2,740,675 2,493,018
Solvency Ratio
Debt to equity (including operating lease liability)1 0.56 0.24 0.34 0.18 0.20
Benchmarks
Debt to Equity (including Operating Lease Liability), Competitors2
Accenture PLC 0.15 0.12 0.15 0.18 0.21
Adobe Inc. 0.43 0.25 0.33 0.32 0.35
CrowdStrike Holdings Inc. 0.34 0.54 0.76 0.89 0.00
International Business Machines Corp. 2.14 2.66 2.46 2.92 3.23
Intuit Inc. 0.36 0.39 0.46 0.25 0.71
Microsoft Corp. 0.36 0.39 0.47 0.58 0.69
Oracle Corp. 10.85 88.84 16.61 6.10
Palantir Technologies Inc. 0.05 0.07 0.10 0.11 0.30
Palo Alto Networks Inc. 0.27 1.33 19.12 5.68 3.16
Salesforce Inc. 0.23 0.25 0.25 0.15 0.18
ServiceNow Inc. 0.24 0.30 0.44 0.60 0.75
Synopsys Inc. 0.08 0.11 0.12 0.13 0.14
Debt to Equity (including Operating Lease Liability), Sector
Software & Services 0.73 0.81 0.93 1.06
Debt to Equity (including Operating Lease Liability), Industry
Information Technology 0.72 0.77 0.90 1.04

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
Debt to equity (including operating lease liability) = Total debt (including operating lease liability) ÷ Stockholders’ equity
= 2,626,630 ÷ 4,673,578 = 0.56

2 Click competitor name to see calculations.

Solvency ratio Description The company
Debt to equity ratio (including operating lease liability) A solvency ratio calculated as total debt (including operating lease liability) divided by total shareholders’ equity. Cadence Design Systems Inc. debt to equity ratio (including operating lease liability) improved from 2022 to 2023 but then deteriorated significantly from 2023 to 2024.

Debt to Capital

Cadence Design Systems Inc., debt to capital calculation, comparison to benchmarks

Microsoft Excel
Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Selected Financial Data (US$ in thousands)
Revolving credit facility 100,000
Current portion of long-term debt 349,285
Long-term debt, excluding current portion 2,476,183 299,771 648,078 347,588 346,793
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
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
Benchmarks
Debt to Capital, Competitors2
Accenture PLC 0.03 0.01 0.00 0.00 0.00
Adobe Inc. 0.29 0.18 0.23 0.22 0.24
CrowdStrike Holdings Inc. 0.24 0.34 0.42 0.46 0.00
International Business Machines Corp. 0.67 0.72 0.70 0.73 0.75
Intuit Inc. 0.25 0.26 0.30 0.17 0.40
Microsoft Corp. 0.23 0.24 0.28 0.33 0.38
Oracle Corp. 0.91 0.99 1.09 0.94 0.86
Palantir Technologies Inc. 0.00 0.00 0.00 0.00 0.12
Palo Alto Networks Inc. 0.16 0.53 0.95 0.84 0.74
Salesforce Inc. 0.15 0.16 0.16 0.06 0.08
ServiceNow Inc. 0.13 0.16 0.23 0.30 0.37
Synopsys Inc. 0.00 0.00 0.00 0.02 0.03
Debt to Capital, Sector
Software & Services 0.39 0.42 0.45 0.49
Debt to Capital, Industry
Information Technology 0.40 0.41 0.45 0.49

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 Click competitor name to see calculations.

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

Debt to Capital (including Operating Lease Liability)

Cadence Design Systems Inc., debt to capital (including operating lease liability) calculation, comparison to benchmarks

Microsoft Excel
Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Selected Financial Data (US$ in thousands)
Revolving credit facility 100,000
Current portion of long-term debt 349,285
Long-term debt, excluding current portion 2,476,183 299,771 648,078 347,588 346,793
Total debt 2,476,183 649,056 748,078 347,588 346,793
Current operating lease liabilities (recorded in Accounts payable and accrued liabilities) 41,554 41,619 36,737 25,271 33,920
Long-term operating lease liabilities 108,893 115,358 139,337 107,121 113,916
Total debt (including operating lease liability) 2,626,630 806,033 924,152 479,980 494,629
Stockholders’ equity 4,673,578 3,404,271 2,745,113 2,740,675 2,493,018
Total capital (including operating lease liability) 7,300,208 4,210,304 3,669,265 3,220,655 2,987,647
Solvency Ratio
Debt to capital (including operating lease liability)1 0.36 0.19 0.25 0.15 0.17
Benchmarks
Debt to Capital (including Operating Lease Liability), Competitors2
Accenture PLC 0.13 0.11 0.13 0.15 0.17
Adobe Inc. 0.30 0.20 0.25 0.24 0.26
CrowdStrike Holdings Inc. 0.26 0.35 0.43 0.47 0.00
International Business Machines Corp. 0.68 0.73 0.71 0.74 0.76
Intuit Inc. 0.26 0.28 0.31 0.20 0.42
Microsoft Corp. 0.27 0.28 0.32 0.37 0.41
Oracle Corp. 0.92 0.99 1.08 0.94 0.86
Palantir Technologies Inc. 0.05 0.06 0.09 0.10 0.23
Palo Alto Networks Inc. 0.21 0.57 0.95 0.85 0.76
Salesforce Inc. 0.19 0.20 0.20 0.13 0.16
ServiceNow Inc. 0.19 0.23 0.31 0.37 0.43
Synopsys Inc. 0.07 0.10 0.11 0.11 0.12
Debt to Capital (including Operating Lease Liability), Sector
Software & Services 0.42 0.45 0.48 0.51
Debt to Capital (including Operating Lease Liability), Industry
Information Technology 0.42 0.43 0.47 0.51

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 (including operating lease liability) = Total debt (including operating lease liability) ÷ Total capital (including operating lease liability)
= 2,626,630 ÷ 7,300,208 = 0.36

2 Click competitor name to see calculations.

Solvency ratio Description The company
Debt to capital ratio (including operating lease liability) A solvency ratio calculated as total debt (including operating lease liability) divided by total debt (including operating lease liability) plus shareholders’ equity. Cadence Design Systems Inc. debt to capital ratio (including operating lease liability) improved from 2022 to 2023 but then deteriorated significantly from 2023 to 2024.

Debt to Assets

Cadence Design Systems Inc., debt to assets calculation, comparison to benchmarks

Microsoft Excel
Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Selected Financial Data (US$ in thousands)
Revolving credit facility 100,000
Current portion of long-term debt 349,285
Long-term debt, excluding current portion 2,476,183 299,771 648,078 347,588 346,793
Total debt 2,476,183 649,056 748,078 347,588 346,793
 
Total assets 8,974,482 5,669,491 5,137,071 4,386,299 3,950,785
Solvency Ratio
Debt to assets1 0.28 0.11 0.15 0.08 0.09
Benchmarks
Debt to Assets, Competitors2
Accenture PLC 0.02 0.00 0.00 0.00 0.00
Adobe Inc. 0.19 0.12 0.15 0.15 0.17
CrowdStrike Holdings Inc. 0.11 0.15 0.20 0.27 0.00
International Business Machines Corp. 0.40 0.42 0.40 0.39 0.39
Intuit Inc. 0.19 0.22 0.25 0.13 0.31
Microsoft Corp. 0.15 0.16 0.18 0.21 0.24
Oracle Corp. 0.62 0.67 0.69 0.64 0.62
Palantir Technologies Inc. 0.00 0.00 0.00 0.00 0.07
Palo Alto Networks Inc. 0.05 0.14 0.30 0.31 0.34
Salesforce Inc. 0.10 0.12 0.12 0.04 0.06
ServiceNow Inc. 0.07 0.09 0.11 0.15 0.19
Synopsys Inc. 0.00 0.00 0.00 0.01 0.02
Debt to Assets, Sector
Software & Services 0.25 0.26 0.28 0.30
Debt to Assets, Industry
Information Technology 0.26 0.26 0.29 0.31

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 assets = Total debt ÷ Total assets
= 2,476,183 ÷ 8,974,482 = 0.28

2 Click competitor name to see calculations.

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

Debt to Assets (including Operating Lease Liability)

Cadence Design Systems Inc., debt to assets (including operating lease liability) calculation, comparison to benchmarks

Microsoft Excel
Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Selected Financial Data (US$ in thousands)
Revolving credit facility 100,000
Current portion of long-term debt 349,285
Long-term debt, excluding current portion 2,476,183 299,771 648,078 347,588 346,793
Total debt 2,476,183 649,056 748,078 347,588 346,793
Current operating lease liabilities (recorded in Accounts payable and accrued liabilities) 41,554 41,619 36,737 25,271 33,920
Long-term operating lease liabilities 108,893 115,358 139,337 107,121 113,916
Total debt (including operating lease liability) 2,626,630 806,033 924,152 479,980 494,629
 
Total assets 8,974,482 5,669,491 5,137,071 4,386,299 3,950,785
Solvency Ratio
Debt to assets (including operating lease liability)1 0.29 0.14 0.18 0.11 0.13
Benchmarks
Debt to Assets (including Operating Lease Liability), Competitors2
Accenture PLC 0.07 0.06 0.07 0.08 0.09
Adobe Inc. 0.20 0.14 0.17 0.17 0.19
CrowdStrike Holdings Inc. 0.12 0.16 0.21 0.29 0.00
International Business Machines Corp. 0.43 0.44 0.42 0.42 0.43
Intuit Inc. 0.20 0.24 0.27 0.16 0.33
Microsoft Corp. 0.19 0.19 0.21 0.25 0.27
Oracle Corp. 0.67 0.71 0.73 0.66 0.64
Palantir Technologies Inc. 0.04 0.05 0.07 0.08 0.17
Palo Alto Networks Inc. 0.07 0.16 0.33 0.35 0.38
Salesforce Inc. 0.14 0.15 0.15 0.10 0.11
ServiceNow Inc. 0.11 0.13 0.17 0.21 0.24
Synopsys Inc. 0.05 0.07 0.07 0.08 0.08
Debt to Assets (including Operating Lease Liability), Sector
Software & Services 0.29 0.30 0.32 0.34
Debt to Assets (including Operating Lease Liability), Industry
Information Technology 0.28 0.29 0.31 0.33

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 assets (including operating lease liability) = Total debt (including operating lease liability) ÷ Total assets
= 2,626,630 ÷ 8,974,482 = 0.29

2 Click competitor name to see calculations.

Solvency ratio Description The company
Debt to assets ratio (including operating lease liability) A solvency ratio calculated as total debt (including operating lease liability) divided by total assets. Cadence Design Systems Inc. debt to assets ratio (including operating lease liability) improved from 2022 to 2023 but then deteriorated significantly from 2023 to 2024.

Financial Leverage

Cadence Design Systems Inc., financial leverage calculation, comparison to benchmarks

Microsoft Excel
Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
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
Benchmarks
Financial Leverage, Competitors2
Accenture PLC 1.98 1.99 2.14 2.21 2.18
Adobe Inc. 2.14 1.80 1.93 1.84 1.83
CrowdStrike Holdings Inc. 2.88 3.43 3.53 3.14 1.89
International Business Machines Corp. 5.02 6.00 5.80 6.98 7.57
Intuit Inc. 1.74 1.61 1.69 1.57 2.14
Microsoft Corp. 1.91 2.00 2.19 2.35 2.55
Oracle Corp. 16.20 125.24 25.03 9.56
Palantir Technologies Inc. 1.27 1.30 1.35 1.42 1.77
Palo Alto Networks Inc. 3.87 8.29 58.35 16.14 8.23
Salesforce Inc. 1.67 1.69 1.64 1.60 1.63
ServiceNow Inc. 2.12 2.28 2.64 2.92 3.07
Synopsys Inc. 1.45 1.68 1.71 1.65 1.64
Financial Leverage, Sector
Software & Services 2.55 2.73 2.95 3.14
Financial Leverage, Industry
Information Technology 2.55 2.68 2.89 3.12

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 Click competitor name to see calculations.

Solvency ratio Description The company
Financial leverage ratio A solvency ratio calculated as total assets divided by total shareholders’ equity. Cadence Design Systems Inc. financial leverage ratio decreased from 2022 to 2023 but then increased from 2023 to 2024 exceeding 2022 level.

Interest Coverage

Cadence Design Systems Inc., interest coverage calculation, comparison to benchmarks

Microsoft Excel
Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Selected Financial Data (US$ in thousands)
Net income 1,055,484 1,041,144 848,952 695,955 590,644
Add: Income tax expense 340,335 240,782 196,411 72,480 42,104
Add: Interest expense 75,999 36,185 22,934 16,980 20,749
Earnings before interest and tax (EBIT) 1,471,818 1,318,111 1,068,297 785,415 653,497
Solvency Ratio
Interest coverage1 19.37 36.43 46.58 46.26 31.50
Benchmarks
Interest Coverage, Competitors2
Accenture PLC 165.48 193.31 195.34 131.46 205.84
Adobe Inc. 42.01 61.17 54.64 51.49 37.00
CrowdStrike Holdings Inc. 5.77 -5.31 -5.34 -55.36 -315.25
International Business Machines Corp. 4.40 6.42 1.97 5.20 4.62
Intuit Inc. 15.67 13.05 32.38 89.14 158.00
Microsoft Corp. 37.72 46.38 41.58 31.31 21.47
Oracle Corp. 4.39 3.65 3.84 6.28 7.13
Palantir Technologies Inc. 69.33 -87.97 -133.20 -82.39
Palo Alto Networks Inc. 120.07 21.82 -6.56 -1.85 -1.61
Salesforce Inc. 20.49 3.30 8.09 24.28 7.42
ServiceNow Inc. 76.57 43.00 15.78 9.89 5.56
Synopsys Inc. 44.06 1,106.08 657.96 240.38 125.16
Interest Coverage, Sector
Software & Services 17.61 18.25 17.63 14.26
Interest Coverage, Industry
Information Technology 17.89 22.78 20.06 14.26

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
Interest coverage = EBIT ÷ Interest expense
= 1,471,818 ÷ 75,999 = 19.37

2 Click competitor name to see calculations.

Solvency ratio Description The company
Interest coverage ratio A solvency ratio calculated as EBIT divided by interest payments. Cadence Design Systems Inc. interest coverage ratio deteriorated from 2022 to 2023 and from 2023 to 2024.

Fixed Charge Coverage

Cadence Design Systems Inc., fixed charge coverage calculation, comparison to benchmarks

Microsoft Excel
Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Selected Financial Data (US$ in thousands)
Net income 1,055,484 1,041,144 848,952 695,955 590,644
Add: Income tax expense 340,335 240,782 196,411 72,480 42,104
Add: Interest expense 75,999 36,185 22,934 16,980 20,749
Earnings before interest and tax (EBIT) 1,471,818 1,318,111 1,068,297 785,415 653,497
Add: Operating lease expense 61,827 56,805 49,165 43,210 39,731
Earnings before fixed charges and tax 1,533,645 1,374,916 1,117,462 828,625 693,228
 
Interest expense 75,999 36,185 22,934 16,980 20,749
Operating lease expense 61,827 56,805 49,165 43,210 39,731
Fixed charges 137,826 92,990 72,099 60,190 60,480
Solvency Ratio
Fixed charge coverage1 11.13 14.79 15.50 13.77 11.46
Benchmarks
Fixed Charge Coverage, Competitors2
Accenture PLC 13.46 10.98 12.25 10.41 9.66
Adobe Inc. 26.20 30.56 26.79 25.59 18.77
CrowdStrike Holdings Inc. 3.98 -3.39 -3.39 -6.40 -12.01
International Business Machines Corp. 3.13 4.32 1.52 3.13 2.62
Intuit Inc. 11.14 9.03 14.67 25.58 27.48
Microsoft Corp. 17.61 19.44 19.50 16.90 12.44
Oracle Corp. 3.53 3.12 3.22 5.17 5.68
Palantir Technologies Inc. 9.48 4.62 -5.06 -7.89 -16.41
Palo Alto Networks Inc. 12.78 7.20 -1.18 -1.09 -0.52
Salesforce Inc. 4.82 1.52 2.18 2.94 1.69
ServiceNow Inc. 12.36 7.59 3.87 2.95 2.29
Synopsys Inc. 12.88 14.38 12.91 9.29 7.46
Fixed Charge Coverage, Sector
Software & Services 9.64 9.53 9.37 7.56
Fixed Charge Coverage, Industry
Information Technology 11.45 13.53 12.31 9.12

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
Fixed charge coverage = Earnings before fixed charges and tax ÷ Fixed charges
= 1,533,645 ÷ 137,826 = 11.13

2 Click competitor name to see calculations.

Solvency ratio Description The company
Fixed charge coverage ratio A solvency ratio calculated as earnings before fixed charges and tax divided by fixed charges. Cadence Design Systems Inc. fixed charge coverage ratio deteriorated from 2022 to 2023 and from 2023 to 2024.