Analysis of Solvency Ratios
Solvency ratios also known as long-term debt ratios measure a company ability to meet long-term obligations.
Solvency Ratios (Summary)
Cadence Design Systems Inc., solvency ratios
Based on: 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), 10-K (reporting date: 2019-12-28).
| 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 deteriorated from 2021 to 2022 but then improved from 2022 to 2023 not reaching 2021 level. |
| 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) deteriorated from 2021 to 2022 but then improved from 2022 to 2023 not reaching 2021 level. |
| 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 deteriorated from 2021 to 2022 but then improved from 2022 to 2023 not reaching 2021 level. |
| 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) deteriorated from 2021 to 2022 but then improved from 2022 to 2023 not reaching 2021 level. |
| Debt to assets ratio | A solvency ratio calculated as total debt divided by total assets. | Cadence Design Systems Inc. debt to assets ratio deteriorated from 2021 to 2022 but then slightly improved from 2022 to 2023. |
| 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) deteriorated from 2021 to 2022 but then improved from 2022 to 2023 not reaching 2021 level. |
| Financial leverage ratio | A solvency ratio calculated as total assets divided by total shareholders’ equity. | Cadence Design Systems Inc. financial leverage ratio increased from 2021 to 2022 but then slightly decreased from 2022 to 2023 not reaching 2021 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 improved from 2021 to 2022 but then deteriorated significantly from 2022 to 2023. |
| 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 improved from 2021 to 2022 but then slightly deteriorated from 2022 to 2023. |
Debt to Equity
Cadence Design Systems Inc., debt to equity calculation, comparison to benchmarks
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 28, 2019 | ||
|---|---|---|---|---|---|---|
| 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 | 299,771) | 648,078) | 347,588) | 346,793) | 346,019) | |
| Total debt | 649,056) | 748,078) | 347,588) | 346,793) | 346,019) | |
| Stockholders’ equity | 3,404,271) | 2,745,113) | 2,740,675) | 2,493,018) | 2,102,894) | |
| Solvency Ratio | ||||||
| Debt to equity1 | 0.19 | 0.27 | 0.13 | 0.14 | 0.16 | |
| Benchmarks | ||||||
| Debt to Equity, Competitors2 | ||||||
| Accenture PLC | 0.01 | 0.00 | 0.00 | 0.00 | 0.00 | |
| Adobe Inc. | 0.22 | 0.29 | 0.28 | 0.31 | 0.39 | |
| Autodesk Inc. | 1.99 | 3.09 | 1.70 | — | — | |
| CrowdStrike Holdings Inc. | 0.51 | 0.72 | 0.85 | 0.00 | — | |
| International Business Machines Corp. | 2.51 | 2.32 | 2.74 | 2.99 | 3.02 | |
| Intuit Inc. | 0.35 | 0.42 | 0.21 | 0.66 | 0.12 | |
| Microsoft Corp. | 0.31 | 0.39 | 0.50 | 0.62 | 0.77 | |
| Oracle Corp. | 84.33 | — | 16.08 | 5.93 | 2.58 | |
| Palo Alto Networks Inc. | 1.14 | 17.51 | 5.08 | 2.80 | 0.90 | |
| Salesforce Inc. | 0.20 | 0.19 | 0.07 | 0.09 | 0.22 | |
| ServiceNow Inc. | 0.20 | 0.30 | 0.43 | 0.58 | 0.33 | |
| Synopsys Inc. | 0.00 | 0.00 | 0.02 | 0.03 | 0.03 | |
| Debt to Equity, Sector | ||||||
| Software & Services | 0.65 | 0.72 | 0.84 | 0.96 | 1.06 | |
| Debt to Equity, Industry | ||||||
| Information Technology | 0.62 | 0.67 | 0.76 | 0.87 | 0.87 | |
Based on: 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), 10-K (reporting date: 2019-12-28).
1 2023 Calculation
Debt to equity = Total debt ÷ Stockholders’ equity
= 649,056 ÷ 3,404,271 = 0.19
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 deteriorated from 2021 to 2022 but then improved from 2022 to 2023 not reaching 2021 level. |
Debt to Equity (including Operating Lease Liability)
Cadence Design Systems Inc., debt to equity (including operating lease liability) calculation, comparison to benchmarks
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 28, 2019 | ||
|---|---|---|---|---|---|---|
| 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 | 299,771) | 648,078) | 347,588) | 346,793) | 346,019) | |
| Total debt | 649,056) | 748,078) | 347,588) | 346,793) | 346,019) | |
| Current operating lease liabilities (recorded in Accounts payable and accrued liabilities) | 41,619) | 36,737) | 25,271) | 33,920) | 25,558) | |
| Long-term operating lease liabilities | 115,358) | 139,337) | 107,121) | 113,916) | 84,782) | |
| Total debt (including operating lease liability) | 806,033) | 924,152) | 479,980) | 494,629) | 456,359) | |
| Stockholders’ equity | 3,404,271) | 2,745,113) | 2,740,675) | 2,493,018) | 2,102,894) | |
| Solvency Ratio | ||||||
| Debt to equity (including operating lease liability)1 | 0.24 | 0.34 | 0.18 | 0.20 | 0.22 | |
| Benchmarks | ||||||
| Debt to Equity (including Operating Lease Liability), Competitors2 | ||||||
| Accenture PLC | 0.12 | 0.15 | 0.18 | 0.21 | 0.00 | |
| Adobe Inc. | 0.25 | 0.33 | 0.32 | 0.35 | 0.39 | |
| Autodesk Inc. | 2.33 | 3.60 | 2.18 | — | — | |
| CrowdStrike Holdings Inc. | 0.54 | 0.76 | 0.89 | 0.00 | — | |
| International Business Machines Corp. | 2.66 | 2.46 | 2.92 | 3.23 | 3.27 | |
| Intuit Inc. | 0.39 | 0.46 | 0.25 | 0.71 | 0.12 | |
| Microsoft Corp. | 0.39 | 0.47 | 0.58 | 0.69 | 0.84 | |
| Oracle Corp. | 88.84 | — | 16.61 | 6.10 | 2.58 | |
| Palo Alto Networks Inc. | 1.33 | 19.12 | 5.68 | 3.16 | 0.90 | |
| Salesforce Inc. | 0.25 | 0.25 | 0.15 | 0.18 | 0.22 | |
| ServiceNow Inc. | 0.30 | 0.44 | 0.60 | 0.75 | 0.53 | |
| Synopsys Inc. | 0.11 | 0.12 | 0.13 | 0.14 | 0.03 | |
| Debt to Equity (including Operating Lease Liability), Sector | ||||||
| Software & Services | 0.74 | 0.82 | 0.94 | 1.08 | 1.13 | |
| Debt to Equity (including Operating Lease Liability), Industry | ||||||
| Information Technology | 0.68 | 0.73 | 0.83 | 0.94 | 0.90 | |
Based on: 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), 10-K (reporting date: 2019-12-28).
1 2023 Calculation
Debt to equity (including operating lease liability) = Total debt (including operating lease liability) ÷ Stockholders’ equity
= 806,033 ÷ 3,404,271 = 0.24
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) deteriorated from 2021 to 2022 but then improved from 2022 to 2023 not reaching 2021 level. |
Debt to Capital
Cadence Design Systems Inc., debt to capital calculation, comparison to benchmarks
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 28, 2019 | ||
|---|---|---|---|---|---|---|
| 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 | 299,771) | 648,078) | 347,588) | 346,793) | 346,019) | |
| Total debt | 649,056) | 748,078) | 347,588) | 346,793) | 346,019) | |
| Stockholders’ equity | 3,404,271) | 2,745,113) | 2,740,675) | 2,493,018) | 2,102,894) | |
| Total capital | 4,053,327) | 3,493,191) | 3,088,263) | 2,839,811) | 2,448,913) | |
| Solvency Ratio | ||||||
| Debt to capital1 | 0.16 | 0.21 | 0.11 | 0.12 | 0.14 | |
| Benchmarks | ||||||
| Debt to Capital, Competitors2 | ||||||
| Accenture PLC | 0.01 | 0.00 | 0.00 | 0.00 | 0.00 | |
| Adobe Inc. | 0.18 | 0.23 | 0.22 | 0.24 | 0.28 | |
| Autodesk Inc. | 0.67 | 0.76 | 0.63 | 1.07 | 1.11 | |
| CrowdStrike Holdings Inc. | 0.34 | 0.42 | 0.46 | 0.00 | — | |
| International Business Machines Corp. | 0.72 | 0.70 | 0.73 | 0.75 | 0.75 | |
| Intuit Inc. | 0.26 | 0.30 | 0.17 | 0.40 | 0.10 | |
| Microsoft Corp. | 0.24 | 0.28 | 0.33 | 0.38 | 0.43 | |
| Oracle Corp. | 0.99 | 1.09 | 0.94 | 0.86 | 0.72 | |
| Palo Alto Networks Inc. | 0.53 | 0.95 | 0.84 | 0.74 | 0.47 | |
| Salesforce Inc. | 0.16 | 0.16 | 0.06 | 0.08 | 0.18 | |
| ServiceNow Inc. | 0.16 | 0.23 | 0.30 | 0.37 | 0.25 | |
| Synopsys Inc. | 0.00 | 0.00 | 0.02 | 0.03 | 0.03 | |
| Debt to Capital, Sector | ||||||
| Software & Services | 0.39 | 0.42 | 0.46 | 0.49 | 0.51 | |
| Debt to Capital, Industry | ||||||
| Information Technology | 0.38 | 0.40 | 0.43 | 0.47 | 0.46 | |
Based on: 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), 10-K (reporting date: 2019-12-28).
1 2023 Calculation
Debt to capital = Total debt ÷ Total capital
= 649,056 ÷ 4,053,327 = 0.16
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 deteriorated from 2021 to 2022 but then improved from 2022 to 2023 not reaching 2021 level. |
Debt to Capital (including Operating Lease Liability)
Cadence Design Systems Inc., debt to capital (including operating lease liability) calculation, comparison to benchmarks
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 28, 2019 | ||
|---|---|---|---|---|---|---|
| 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 | 299,771) | 648,078) | 347,588) | 346,793) | 346,019) | |
| Total debt | 649,056) | 748,078) | 347,588) | 346,793) | 346,019) | |
| Current operating lease liabilities (recorded in Accounts payable and accrued liabilities) | 41,619) | 36,737) | 25,271) | 33,920) | 25,558) | |
| Long-term operating lease liabilities | 115,358) | 139,337) | 107,121) | 113,916) | 84,782) | |
| Total debt (including operating lease liability) | 806,033) | 924,152) | 479,980) | 494,629) | 456,359) | |
| Stockholders’ equity | 3,404,271) | 2,745,113) | 2,740,675) | 2,493,018) | 2,102,894) | |
| Total capital (including operating lease liability) | 4,210,304) | 3,669,265) | 3,220,655) | 2,987,647) | 2,559,253) | |
| Solvency Ratio | ||||||
| Debt to capital (including operating lease liability)1 | 0.19 | 0.25 | 0.15 | 0.17 | 0.18 | |
| Benchmarks | ||||||
| Debt to Capital (including Operating Lease Liability), Competitors2 | ||||||
| Accenture PLC | 0.11 | 0.13 | 0.15 | 0.17 | 0.00 | |
| Adobe Inc. | 0.20 | 0.25 | 0.24 | 0.26 | 0.28 | |
| Autodesk Inc. | 0.70 | 0.78 | 0.69 | 1.06 | 1.11 | |
| CrowdStrike Holdings Inc. | 0.35 | 0.43 | 0.47 | 0.00 | — | |
| International Business Machines Corp. | 0.73 | 0.71 | 0.74 | 0.76 | 0.77 | |
| Intuit Inc. | 0.28 | 0.31 | 0.20 | 0.42 | 0.10 | |
| Microsoft Corp. | 0.28 | 0.32 | 0.37 | 0.41 | 0.46 | |
| Oracle Corp. | 0.99 | 1.08 | 0.94 | 0.86 | 0.72 | |
| Palo Alto Networks Inc. | 0.57 | 0.95 | 0.85 | 0.76 | 0.47 | |
| Salesforce Inc. | 0.20 | 0.20 | 0.13 | 0.16 | 0.18 | |
| ServiceNow Inc. | 0.23 | 0.31 | 0.37 | 0.43 | 0.35 | |
| Synopsys Inc. | 0.10 | 0.11 | 0.11 | 0.12 | 0.03 | |
| Debt to Capital (including Operating Lease Liability), Sector | ||||||
| Software & Services | 0.43 | 0.45 | 0.49 | 0.52 | 0.53 | |
| Debt to Capital (including Operating Lease Liability), Industry | ||||||
| Information Technology | 0.41 | 0.42 | 0.45 | 0.49 | 0.47 | |
Based on: 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), 10-K (reporting date: 2019-12-28).
1 2023 Calculation
Debt to capital (including operating lease liability) = Total debt (including operating lease liability) ÷ Total capital (including operating lease liability)
= 806,033 ÷ 4,210,304 = 0.19
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) deteriorated from 2021 to 2022 but then improved from 2022 to 2023 not reaching 2021 level. |
Debt to Assets
Cadence Design Systems Inc., debt to assets calculation, comparison to benchmarks
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 28, 2019 | ||
|---|---|---|---|---|---|---|
| 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 | 299,771) | 648,078) | 347,588) | 346,793) | 346,019) | |
| Total debt | 649,056) | 748,078) | 347,588) | 346,793) | 346,019) | |
| Total assets | 5,669,491) | 5,137,071) | 4,386,299) | 3,950,785) | 3,357,225) | |
| Solvency Ratio | ||||||
| Debt to assets1 | 0.11 | 0.15 | 0.08 | 0.09 | 0.10 | |
| Benchmarks | ||||||
| Debt to Assets, Competitors2 | ||||||
| Accenture PLC | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | |
| Adobe Inc. | 0.12 | 0.15 | 0.15 | 0.17 | 0.20 | |
| Autodesk Inc. | 0.24 | 0.31 | 0.22 | 0.34 | 0.44 | |
| CrowdStrike Holdings Inc. | 0.15 | 0.20 | 0.27 | 0.00 | — | |
| International Business Machines Corp. | 0.42 | 0.40 | 0.39 | 0.39 | 0.41 | |
| Intuit Inc. | 0.22 | 0.25 | 0.13 | 0.31 | 0.07 | |
| Microsoft Corp. | 0.16 | 0.18 | 0.21 | 0.24 | 0.27 | |
| Oracle Corp. | 0.67 | 0.69 | 0.64 | 0.62 | 0.52 | |
| Palo Alto Networks Inc. | 0.14 | 0.30 | 0.31 | 0.34 | 0.22 | |
| Salesforce Inc. | 0.12 | 0.12 | 0.04 | 0.06 | 0.11 | |
| ServiceNow Inc. | 0.09 | 0.11 | 0.15 | 0.19 | 0.12 | |
| Synopsys Inc. | 0.00 | 0.00 | 0.01 | 0.02 | 0.02 | |
| Debt to Assets, Sector | ||||||
| Software & Services | 0.25 | 0.26 | 0.28 | 0.30 | 0.32 | |
| Debt to Assets, Industry | ||||||
| Information Technology | 0.26 | 0.26 | 0.28 | 0.30 | 0.30 | |
Based on: 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), 10-K (reporting date: 2019-12-28).
1 2023 Calculation
Debt to assets = Total debt ÷ Total assets
= 649,056 ÷ 5,669,491 = 0.11
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 deteriorated from 2021 to 2022 but then slightly improved from 2022 to 2023. |
Debt to Assets (including Operating Lease Liability)
Cadence Design Systems Inc., debt to assets (including operating lease liability) calculation, comparison to benchmarks
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 28, 2019 | ||
|---|---|---|---|---|---|---|
| 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 | 299,771) | 648,078) | 347,588) | 346,793) | 346,019) | |
| Total debt | 649,056) | 748,078) | 347,588) | 346,793) | 346,019) | |
| Current operating lease liabilities (recorded in Accounts payable and accrued liabilities) | 41,619) | 36,737) | 25,271) | 33,920) | 25,558) | |
| Long-term operating lease liabilities | 115,358) | 139,337) | 107,121) | 113,916) | 84,782) | |
| Total debt (including operating lease liability) | 806,033) | 924,152) | 479,980) | 494,629) | 456,359) | |
| Total assets | 5,669,491) | 5,137,071) | 4,386,299) | 3,950,785) | 3,357,225) | |
| Solvency Ratio | ||||||
| Debt to assets (including operating lease liability)1 | 0.14 | 0.18 | 0.11 | 0.13 | 0.14 | |
| Benchmarks | ||||||
| Debt to Assets (including Operating Lease Liability), Competitors2 | ||||||
| Accenture PLC | 0.06 | 0.07 | 0.08 | 0.09 | 0.00 | |
| Adobe Inc. | 0.14 | 0.17 | 0.17 | 0.19 | 0.20 | |
| Autodesk Inc. | 0.28 | 0.36 | 0.29 | 0.41 | 0.44 | |
| CrowdStrike Holdings Inc. | 0.16 | 0.21 | 0.29 | 0.00 | — | |
| International Business Machines Corp. | 0.44 | 0.42 | 0.42 | 0.43 | 0.45 | |
| Intuit Inc. | 0.24 | 0.27 | 0.16 | 0.33 | 0.07 | |
| Microsoft Corp. | 0.19 | 0.21 | 0.25 | 0.27 | 0.30 | |
| Oracle Corp. | 0.71 | 0.73 | 0.66 | 0.64 | 0.52 | |
| Palo Alto Networks Inc. | 0.16 | 0.33 | 0.35 | 0.38 | 0.22 | |
| Salesforce Inc. | 0.15 | 0.15 | 0.10 | 0.11 | 0.11 | |
| ServiceNow Inc. | 0.13 | 0.17 | 0.21 | 0.24 | 0.19 | |
| Synopsys Inc. | 0.07 | 0.07 | 0.08 | 0.08 | 0.02 | |
| Debt to Assets (including Operating Lease Liability), Sector | ||||||
| Software & Services | 0.29 | 0.30 | 0.32 | 0.34 | 0.34 | |
| Debt to Assets (including Operating Lease Liability), Industry | ||||||
| Information Technology | 0.28 | 0.29 | 0.31 | 0.33 | 0.31 | |
Based on: 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), 10-K (reporting date: 2019-12-28).
1 2023 Calculation
Debt to assets (including operating lease liability) = Total debt (including operating lease liability) ÷ Total assets
= 806,033 ÷ 5,669,491 = 0.14
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) deteriorated from 2021 to 2022 but then improved from 2022 to 2023 not reaching 2021 level. |
Financial Leverage
Cadence Design Systems Inc., financial leverage calculation, comparison to benchmarks
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 28, 2019 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||
| Total assets | 5,669,491) | 5,137,071) | 4,386,299) | 3,950,785) | 3,357,225) | |
| Stockholders’ equity | 3,404,271) | 2,745,113) | 2,740,675) | 2,493,018) | 2,102,894) | |
| Solvency Ratio | ||||||
| Financial leverage1 | 1.67 | 1.87 | 1.60 | 1.58 | 1.60 | |
| Benchmarks | ||||||
| Financial Leverage, Competitors2 | ||||||
| Accenture PLC | 1.99 | 2.14 | 2.21 | 2.18 | 2.07 | |
| Adobe Inc. | 1.80 | 1.93 | 1.84 | 1.83 | 1.97 | |
| Autodesk Inc. | 8.24 | 10.14 | 7.54 | — | — | |
| CrowdStrike Holdings Inc. | 3.43 | 3.53 | 3.14 | 1.89 | — | |
| International Business Machines Corp. | 6.00 | 5.80 | 6.98 | 7.57 | 7.30 | |
| Intuit Inc. | 1.61 | 1.69 | 1.57 | 2.14 | 1.68 | |
| Microsoft Corp. | 2.00 | 2.19 | 2.35 | 2.55 | 2.80 | |
| Oracle Corp. | 125.24 | — | 25.03 | 9.56 | 4.99 | |
| Palo Alto Networks Inc. | 8.29 | 58.35 | 16.14 | 8.23 | 4.16 | |
| Salesforce Inc. | 1.69 | 1.64 | 1.60 | 1.63 | 1.97 | |
| ServiceNow Inc. | 2.28 | 2.64 | 2.92 | 3.07 | 2.83 | |
| Synopsys Inc. | 1.68 | 1.71 | 1.65 | 1.64 | 1.57 | |
| Financial Leverage, Sector | ||||||
| Software & Services | 2.58 | 2.76 | 2.98 | 3.18 | 3.33 | |
| Financial Leverage, Industry | ||||||
| Information Technology | 2.44 | 2.56 | 2.71 | 2.90 | 2.86 | |
Based on: 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), 10-K (reporting date: 2019-12-28).
1 2023 Calculation
Financial leverage = Total assets ÷ Stockholders’ equity
= 5,669,491 ÷ 3,404,271 = 1.67
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 increased from 2021 to 2022 but then slightly decreased from 2022 to 2023 not reaching 2021 level. |
Interest Coverage
Cadence Design Systems Inc., interest coverage calculation, comparison to benchmarks
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 28, 2019 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||
| Net income | 1,041,144) | 848,952) | 695,955) | 590,644) | 988,979) | |
| Add: Income tax expense | 240,782) | 196,411) | 72,480) | 42,104) | (510,011) | |
| Add: Interest expense | 36,185) | 22,934) | 16,980) | 20,749) | 18,829) | |
| Earnings before interest and tax (EBIT) | 1,318,111) | 1,068,297) | 785,415) | 653,497) | 497,797) | |
| Solvency Ratio | ||||||
| Interest coverage1 | 36.43 | 46.58 | 46.26 | 31.50 | 26.44 | |
| Benchmarks | ||||||
| Interest Coverage, Competitors2 | ||||||
| Accenture PLC | 193.31 | 195.34 | 131.46 | 205.84 | 273.26 | |
| Adobe Inc. | 61.17 | 54.64 | 51.49 | 37.00 | 21.38 | |
| Autodesk Inc. | 14.32 | 9.69 | 11.70 | 6.46 | 0.18 | |
| CrowdStrike Holdings Inc. | -5.31 | -5.34 | -55.36 | -315.25 | — | |
| International Business Machines Corp. | 6.42 | 1.97 | 5.20 | 4.62 | 8.58 | |
| Intuit Inc. | 13.05 | 32.38 | 89.14 | 158.00 | 126.40 | |
| Microsoft Corp. | 46.38 | 41.58 | 31.31 | 21.47 | 17.27 | |
| Oracle Corp. | 3.65 | 3.84 | 6.28 | 7.13 | 6.97 | |
| Palo Alto Networks Inc. | 21.82 | -6.56 | -1.85 | -1.61 | 0.11 | |
| Salesforce Inc. | 3.30 | 8.09 | 24.28 | 7.42 | 8.80 | |
| ServiceNow Inc. | 43.00 | 15.78 | 9.89 | 5.56 | 3.02 | |
| Synopsys Inc. | 1,106.08 | 657.96 | 240.38 | 125.16 | 47.79 | |
| Interest Coverage, Sector | ||||||
| Software & Services | 17.56 | 18.23 | 17.67 | 14.41 | 13.00 | |
| Interest Coverage, Industry | ||||||
| Information Technology | 18.86 | 24.65 | 23.05 | 16.83 | 15.85 | |
Based on: 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), 10-K (reporting date: 2019-12-28).
1 2023 Calculation
Interest coverage = EBIT ÷ Interest expense
= 1,318,111 ÷ 36,185 = 36.43
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 improved from 2021 to 2022 but then deteriorated significantly from 2022 to 2023. |
Fixed Charge Coverage
Cadence Design Systems Inc., fixed charge coverage calculation, comparison to benchmarks
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 28, 2019 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||
| Net income | 1,041,144) | 848,952) | 695,955) | 590,644) | 988,979) | |
| Add: Income tax expense | 240,782) | 196,411) | 72,480) | 42,104) | (510,011) | |
| Add: Interest expense | 36,185) | 22,934) | 16,980) | 20,749) | 18,829) | |
| Earnings before interest and tax (EBIT) | 1,318,111) | 1,068,297) | 785,415) | 653,497) | 497,797) | |
| Add: Operating lease expense | 56,805) | 49,165) | 43,210) | 39,731) | 34,709) | |
| Earnings before fixed charges and tax | 1,374,916) | 1,117,462) | 828,625) | 693,228) | 532,506) | |
| Interest expense | 36,185) | 22,934) | 16,980) | 20,749) | 18,829) | |
| Operating lease expense | 56,805) | 49,165) | 43,210) | 39,731) | 34,709) | |
| Fixed charges | 92,990) | 72,099) | 60,190) | 60,480) | 53,538) | |
| Solvency Ratio | ||||||
| Fixed charge coverage1 | 14.79 | 15.50 | 13.77 | 11.46 | 9.95 | |
| Benchmarks | ||||||
| Fixed Charge Coverage, Competitors2 | ||||||
| Accenture PLC | 10.98 | 12.25 | 10.41 | 9.66 | 10.07 | |
| Adobe Inc. | 30.56 | 26.79 | 25.59 | 18.77 | 10.78 | |
| Autodesk Inc. | 7.06 | 4.46 | 4.58 | 3.09 | 0.62 | |
| CrowdStrike Holdings Inc. | -3.39 | -3.39 | -6.40 | -12.01 | — | |
| International Business Machines Corp. | 4.32 | 1.52 | 3.13 | 2.62 | 4.41 | |
| Intuit Inc. | 9.03 | 14.67 | 25.58 | 27.48 | 34.00 | |
| Microsoft Corp. | 19.44 | 19.50 | 16.90 | 12.44 | 10.94 | |
| Oracle Corp. | 3.12 | 3.22 | 5.17 | 5.68 | 5.50 | |
| Palo Alto Networks Inc. | 7.20 | -1.18 | -1.09 | -0.52 | 0.41 | |
| Salesforce Inc. | 1.52 | 2.18 | 2.94 | 1.69 | 3.00 | |
| ServiceNow Inc. | 7.59 | 3.87 | 2.95 | 2.29 | 1.69 | |
| Synopsys Inc. | 14.38 | 12.91 | 9.29 | 7.46 | 6.30 | |
| Fixed Charge Coverage, Sector | ||||||
| Software & Services | 9.63 | 9.53 | 9.38 | 7.64 | 7.52 | |
| Fixed Charge Coverage, Industry | ||||||
| Information Technology | 11.88 | 14.17 | 13.49 | 10.22 | 10.45 | |
Based on: 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), 10-K (reporting date: 2019-12-28).
1 2023 Calculation
Fixed charge coverage = Earnings before fixed charges and tax ÷ Fixed charges
= 1,374,916 ÷ 92,990 = 14.79
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 improved from 2021 to 2022 but then slightly deteriorated from 2022 to 2023. |