Analysis of Solvency Ratios
Quarterly Data
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 (quarterly data)
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).
| 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 Q4 2022 to Q1 2023 and from Q1 2023 to Q2 2023. |
| 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 Q4 2022 to Q1 2023 and from Q1 2023 to Q2 2023. |
| 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 Q4 2022 to Q1 2023 and from Q1 2023 to Q2 2023. |
| Financial leverage ratio | A solvency ratio calculated as total assets divided by total shareholders’ equity. | Cadence Design Systems Inc. financial leverage ratio decreased from Q4 2022 to Q1 2023 but then slightly increased from Q1 2023 to Q2 2023. |
| 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 Q4 2022 to Q1 2023 and from Q1 2023 to Q2 2023. |
Debt to Equity
Cadence Design Systems Inc., debt to equity calculation (quarterly data)
| Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Oct 1, 2022 | Jul 2, 2022 | Apr 2, 2022 | Dec 31, 2021 | Oct 2, 2021 | Jul 3, 2021 | Apr 3, 2021 | Dec 31, 2020 | Sep 26, 2020 | Jun 27, 2020 | Mar 28, 2020 | Dec 28, 2019 | Sep 28, 2019 | Jun 29, 2019 | Mar 30, 2019 | Dec 29, 2018 | Sep 29, 2018 | Jun 30, 2018 | Mar 31, 2018 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | |||||||||||||||||||||||||||||
| Revolving credit facility | —) | 30,000) | 100,000) | 150,000) | —) | —) | —) | —) | —) | —) | —) | 350,000) | 350,000) | 350,000) | —) | —) | —) | 50,000) | 100,000) | —) | —) | 45,000) | |||||||
| Current portion of long-term debt | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | 299,879) | 299,826) | |||||||
| Long-term debt, excluding current portion | 648,551) | 648,301) | 648,078) | 647,799) | 347,999) | 347,792) | 347,588) | 347,385) | 347,186) | 346,988) | 346,793) | 346,584) | 346,394) | 346,205) | 346,019) | 345,833) | 345,652) | 345,470) | 345,291) | 345,113) | 344,939) | 344,766) | |||||||
| Total debt | 648,551) | 678,301) | 748,078) | 797,799) | 347,999) | 347,792) | 347,588) | 347,385) | 347,186) | 346,988) | 346,793) | 696,584) | 696,394) | 696,205) | 346,019) | 345,833) | 345,652) | 395,470) | 445,291) | 345,113) | 644,818) | 689,592) | |||||||
| Stockholders’ equity | 2,908,455) | 2,940,876) | 2,745,113) | 2,708,128) | 2,625,229) | 2,760,183) | 2,740,675) | 2,631,262) | 2,516,743) | 2,542,432) | 2,493,018) | 2,395,718) | 2,256,631) | 2,157,994) | 2,102,894) | 1,480,262) | 1,430,545) | 1,365,837) | 1,288,401) | 1,257,417) | 1,187,988) | 1,142,298) | |||||||
| Solvency Ratio | |||||||||||||||||||||||||||||
| Debt to equity1 | 0.22 | 0.23 | 0.27 | 0.29 | 0.13 | 0.13 | 0.13 | 0.13 | 0.14 | 0.14 | 0.14 | 0.29 | 0.31 | 0.32 | 0.16 | 0.23 | 0.24 | 0.29 | 0.35 | 0.27 | 0.54 | 0.60 | |||||||
| Benchmarks | |||||||||||||||||||||||||||||
| Debt to Equity, Competitors2 | |||||||||||||||||||||||||||||
| Accenture PLC | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | |||||||
| Adobe Inc. | 0.24 | 0.26 | 0.29 | 0.29 | 0.30 | 0.30 | 0.28 | 0.29 | 0.30 | 0.30 | 0.31 | 0.35 | 0.38 | 0.39 | 0.39 | 0.40 | 0.42 | 0.42 | 0.44 | 0.21 | 0.22 | 0.22 | |||||||
| International Business Machines Corp. | 2.59 | 2.72 | 2.32 | 2.53 | 2.59 | 2.85 | 2.74 | 2.45 | 2.51 | 2.64 | 2.99 | 3.08 | 3.15 | 3.22 | 3.02 | 3.69 | 4.14 | 3.03 | — | — | — | — | |||||||
| Intuit Inc. | 0.45 | 0.43 | 0.42 | 0.40 | 0.43 | 0.21 | 0.21 | 0.20 | 0.27 | 0.45 | 0.66 | 0.08 | 0.11 | 0.12 | 0.12 | 0.11 | 0.15 | 0.15 | 0.19 | 0.19 | 0.95 | 0.73 | |||||||
| Microsoft Corp. | 0.26 | 0.28 | 0.30 | 0.31 | 0.33 | 0.35 | 0.41 | 0.43 | 0.46 | 0.52 | 0.54 | 0.58 | 0.63 | 0.66 | 0.71 | 0.77 | 0.79 | 0.89 | 0.92 | 0.97 | 1.14 | 0.95 | |||||||
| Oracle Corp. | — | — | — | — | — | — | 16.08 | 7.79 | 8.94 | 7.46 | 5.93 | 3.63 | 3.32 | 2.95 | 2.58 | 2.37 | 1.90 | 1.53 | 1.33 | 1.27 | 1.09 | 0.95 | |||||||
| Palo Alto Networks Inc. | 5.05 | 7.24 | 17.51 | 10.89 | 31.19 | 7.08 | 5.08 | 3.20 | 3.04 | 4.18 | 2.80 | 1.98 | 0.91 | 0.95 | 0.90 | 1.08 | 1.45 | 1.30 | 1.99 | 0.75 | 0.85 | 0.80 | |||||||
| Salesforce Inc. | 0.18 | 0.18 | 0.18 | 0.19 | 0.24 | 0.06 | 0.06 | 0.07 | 0.07 | 0.08 | 0.08 | 0.08 | 0.17 | 0.19 | 0.20 | 0.25 | 0.27 | 0.29 | — | — | — | — | |||||||
| ServiceNow Inc. | 0.21 | 0.27 | 0.30 | 0.33 | 0.35 | 0.39 | 0.43 | 0.45 | 0.48 | 0.53 | 0.58 | 0.64 | 0.28 | 0.31 | 0.33 | 0.48 | 0.54 | 0.56 | — | — | — | — | |||||||
| Synopsys Inc. | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.02 | 0.02 | 0.02 | 0.03 | 0.03 | 0.03 | 0.06 | 0.08 | 0.03 | 0.04 | 0.07 | 0.14 | 0.13 | 0.20 | 0.16 | 0.18 | |||||||
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).
1 Q2 2023 Calculation
Debt to equity = Total debt ÷ Stockholders’ equity
= 648,551 ÷ 2,908,455 = 0.22
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 Q4 2022 to Q1 2023 and from Q1 2023 to Q2 2023. |
Debt to Capital
Cadence Design Systems Inc., debt to capital calculation (quarterly data)
| Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Oct 1, 2022 | Jul 2, 2022 | Apr 2, 2022 | Dec 31, 2021 | Oct 2, 2021 | Jul 3, 2021 | Apr 3, 2021 | Dec 31, 2020 | Sep 26, 2020 | Jun 27, 2020 | Mar 28, 2020 | Dec 28, 2019 | Sep 28, 2019 | Jun 29, 2019 | Mar 30, 2019 | Dec 29, 2018 | Sep 29, 2018 | Jun 30, 2018 | Mar 31, 2018 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | |||||||||||||||||||||||||||||
| Revolving credit facility | —) | 30,000) | 100,000) | 150,000) | —) | —) | —) | —) | —) | —) | —) | 350,000) | 350,000) | 350,000) | —) | —) | —) | 50,000) | 100,000) | —) | —) | 45,000) | |||||||
| Current portion of long-term debt | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | 299,879) | 299,826) | |||||||
| Long-term debt, excluding current portion | 648,551) | 648,301) | 648,078) | 647,799) | 347,999) | 347,792) | 347,588) | 347,385) | 347,186) | 346,988) | 346,793) | 346,584) | 346,394) | 346,205) | 346,019) | 345,833) | 345,652) | 345,470) | 345,291) | 345,113) | 344,939) | 344,766) | |||||||
| Total debt | 648,551) | 678,301) | 748,078) | 797,799) | 347,999) | 347,792) | 347,588) | 347,385) | 347,186) | 346,988) | 346,793) | 696,584) | 696,394) | 696,205) | 346,019) | 345,833) | 345,652) | 395,470) | 445,291) | 345,113) | 644,818) | 689,592) | |||||||
| Stockholders’ equity | 2,908,455) | 2,940,876) | 2,745,113) | 2,708,128) | 2,625,229) | 2,760,183) | 2,740,675) | 2,631,262) | 2,516,743) | 2,542,432) | 2,493,018) | 2,395,718) | 2,256,631) | 2,157,994) | 2,102,894) | 1,480,262) | 1,430,545) | 1,365,837) | 1,288,401) | 1,257,417) | 1,187,988) | 1,142,298) | |||||||
| Total capital | 3,557,006) | 3,619,177) | 3,493,191) | 3,505,927) | 2,973,228) | 3,107,975) | 3,088,263) | 2,978,647) | 2,863,929) | 2,889,420) | 2,839,811) | 3,092,302) | 2,953,025) | 2,854,199) | 2,448,913) | 1,826,095) | 1,776,197) | 1,761,307) | 1,733,692) | 1,602,530) | 1,832,806) | 1,831,890) | |||||||
| Solvency Ratio | |||||||||||||||||||||||||||||
| Debt to capital1 | 0.18 | 0.19 | 0.21 | 0.23 | 0.12 | 0.11 | 0.11 | 0.12 | 0.12 | 0.12 | 0.12 | 0.23 | 0.24 | 0.24 | 0.14 | 0.19 | 0.19 | 0.22 | 0.26 | 0.22 | 0.35 | 0.38 | |||||||
| Benchmarks | |||||||||||||||||||||||||||||
| Debt to Capital, Competitors2 | |||||||||||||||||||||||||||||
| Accenture PLC | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | |||||||
| Adobe Inc. | 0.20 | 0.20 | 0.23 | 0.22 | 0.23 | 0.23 | 0.22 | 0.22 | 0.23 | 0.23 | 0.24 | 0.26 | 0.27 | 0.28 | 0.28 | 0.29 | 0.29 | 0.29 | 0.31 | 0.17 | 0.18 | 0.18 | |||||||
| International Business Machines Corp. | 0.72 | 0.73 | 0.70 | 0.72 | 0.72 | 0.74 | 0.73 | 0.71 | 0.72 | 0.73 | 0.75 | 0.76 | 0.76 | 0.76 | 0.75 | 0.79 | 0.81 | 0.75 | — | — | — | — | |||||||
| Intuit Inc. | 0.31 | 0.30 | 0.30 | 0.29 | 0.30 | 0.17 | 0.17 | 0.17 | 0.21 | 0.31 | 0.40 | 0.08 | 0.10 | 0.10 | 0.10 | 0.10 | 0.13 | 0.13 | 0.16 | 0.16 | 0.49 | 0.42 | |||||||
| Microsoft Corp. | 0.21 | 0.22 | 0.23 | 0.23 | 0.25 | 0.26 | 0.29 | 0.30 | 0.32 | 0.34 | 0.35 | 0.37 | 0.39 | 0.40 | 0.41 | 0.44 | 0.44 | 0.47 | 0.48 | 0.49 | 0.53 | 0.49 | |||||||
| Oracle Corp. | 1.05 | 1.07 | 1.09 | 1.12 | 1.15 | 1.02 | 0.94 | 0.89 | 0.90 | 0.88 | 0.86 | 0.78 | 0.77 | 0.75 | 0.72 | 0.70 | 0.65 | 0.60 | 0.57 | 0.56 | 0.52 | 0.49 | |||||||
| Palo Alto Networks Inc. | 0.83 | 0.88 | 0.95 | 0.92 | 0.97 | 0.88 | 0.84 | 0.76 | 0.75 | 0.81 | 0.74 | 0.66 | 0.48 | 0.49 | 0.47 | 0.52 | 0.59 | 0.56 | 0.67 | 0.43 | 0.46 | 0.44 | |||||||
| Salesforce Inc. | 0.15 | 0.15 | 0.15 | 0.16 | 0.19 | 0.06 | 0.06 | 0.06 | 0.07 | 0.07 | 0.07 | 0.08 | 0.15 | 0.16 | 0.17 | 0.20 | 0.21 | 0.22 | — | — | — | — | |||||||
| ServiceNow Inc. | 0.18 | 0.21 | 0.23 | 0.25 | 0.26 | 0.28 | 0.30 | 0.31 | 0.33 | 0.35 | 0.37 | 0.39 | 0.22 | 0.24 | 0.25 | 0.32 | 0.35 | 0.36 | — | — | — | — | |||||||
| Synopsys Inc. | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.02 | 0.02 | 0.02 | 0.02 | 0.03 | 0.03 | 0.05 | 0.07 | 0.03 | 0.03 | 0.07 | 0.13 | 0.12 | 0.16 | 0.14 | 0.15 | |||||||
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).
1 Q2 2023 Calculation
Debt to capital = Total debt ÷ Total capital
= 648,551 ÷ 3,557,006 = 0.18
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 Q4 2022 to Q1 2023 and from Q1 2023 to Q2 2023. |
Debt to Assets
Cadence Design Systems Inc., debt to assets calculation (quarterly data)
| Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Oct 1, 2022 | Jul 2, 2022 | Apr 2, 2022 | Dec 31, 2021 | Oct 2, 2021 | Jul 3, 2021 | Apr 3, 2021 | Dec 31, 2020 | Sep 26, 2020 | Jun 27, 2020 | Mar 28, 2020 | Dec 28, 2019 | Sep 28, 2019 | Jun 29, 2019 | Mar 30, 2019 | Dec 29, 2018 | Sep 29, 2018 | Jun 30, 2018 | Mar 31, 2018 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | |||||||||||||||||||||||||||||
| Revolving credit facility | —) | 30,000) | 100,000) | 150,000) | —) | —) | —) | —) | —) | —) | —) | 350,000) | 350,000) | 350,000) | —) | —) | —) | 50,000) | 100,000) | —) | —) | 45,000) | |||||||
| Current portion of long-term debt | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | 299,879) | 299,826) | |||||||
| Long-term debt, excluding current portion | 648,551) | 648,301) | 648,078) | 647,799) | 347,999) | 347,792) | 347,588) | 347,385) | 347,186) | 346,988) | 346,793) | 346,584) | 346,394) | 346,205) | 346,019) | 345,833) | 345,652) | 345,470) | 345,291) | 345,113) | 344,939) | 344,766) | |||||||
| Total debt | 648,551) | 678,301) | 748,078) | 797,799) | 347,999) | 347,792) | 347,588) | 347,385) | 347,186) | 346,988) | 346,793) | 696,584) | 696,394) | 696,205) | 346,019) | 345,833) | 345,652) | 395,470) | 445,291) | 345,113) | 644,818) | 689,592) | |||||||
| Total assets | 5,155,124) | 5,171,619) | 5,137,071) | 4,968,087) | 4,361,274) | 4,395,067) | 4,386,299) | 4,213,875) | 4,122,548) | 3,998,959) | 3,950,785) | 4,140,152) | 3,999,497) | 3,767,973) | 3,357,225) | 2,662,198) | 2,612,325) | 2,546,311) | 2,468,654) | 2,273,207) | 2,527,865) | 2,486,673) | |||||||
| Solvency Ratio | |||||||||||||||||||||||||||||
| Debt to assets1 | 0.13 | 0.13 | 0.15 | 0.16 | 0.08 | 0.08 | 0.08 | 0.08 | 0.08 | 0.09 | 0.09 | 0.17 | 0.17 | 0.18 | 0.10 | 0.13 | 0.13 | 0.16 | 0.18 | 0.15 | 0.26 | 0.28 | |||||||
| Benchmarks | |||||||||||||||||||||||||||||
| Debt to Assets, Competitors2 | |||||||||||||||||||||||||||||
| Accenture PLC | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | |||||||
| Adobe Inc. | 0.13 | 0.14 | 0.15 | 0.15 | 0.16 | 0.16 | 0.15 | 0.16 | 0.16 | 0.16 | 0.17 | 0.18 | 0.19 | 0.19 | 0.20 | 0.21 | 0.21 | 0.21 | 0.22 | 0.12 | 0.12 | 0.13 | |||||||
| International Business Machines Corp. | 0.43 | 0.44 | 0.40 | 0.40 | 0.39 | 0.41 | 0.39 | 0.38 | 0.38 | 0.38 | 0.39 | 0.42 | 0.42 | 0.42 | 0.41 | 0.44 | 0.47 | 0.38 | — | — | — | — | |||||||
| Intuit Inc. | 0.26 | 0.26 | 0.25 | 0.24 | 0.26 | 0.14 | 0.13 | 0.13 | 0.16 | 0.24 | 0.31 | 0.05 | 0.06 | 0.07 | 0.07 | 0.06 | 0.08 | 0.09 | 0.08 | 0.08 | 0.23 | 0.22 | |||||||
| Microsoft Corp. | 0.13 | 0.14 | 0.14 | 0.14 | 0.16 | 0.16 | 0.17 | 0.19 | 0.20 | 0.21 | 0.21 | 0.23 | 0.25 | 0.25 | 0.25 | 0.28 | 0.28 | 0.30 | 0.29 | 0.31 | 0.35 | 0.34 | |||||||
| Oracle Corp. | 0.71 | 0.70 | 0.69 | 0.72 | 0.73 | 0.67 | 0.64 | 0.59 | 0.64 | 0.62 | 0.62 | 0.53 | 0.52 | 0.51 | 0.52 | 0.51 | 0.49 | 0.45 | 0.44 | 0.44 | 0.44 | 0.40 | |||||||
| Palo Alto Networks Inc. | 0.28 | 0.29 | 0.30 | 0.33 | 0.35 | 0.35 | 0.31 | 0.33 | 0.33 | 0.36 | 0.34 | 0.23 | 0.20 | 0.21 | 0.22 | 0.25 | 0.27 | 0.28 | 0.33 | 0.14 | 0.15 | 0.15 | |||||||
| Salesforce Inc. | 0.11 | 0.11 | 0.11 | 0.12 | 0.15 | 0.04 | 0.04 | 0.05 | 0.05 | 0.05 | 0.05 | 0.06 | 0.09 | 0.10 | 0.10 | 0.14 | 0.14 | 0.14 | — | — | — | — | |||||||
| ServiceNow Inc. | 0.10 | 0.11 | 0.11 | 0.13 | 0.13 | 0.14 | 0.15 | 0.17 | 0.17 | 0.18 | 0.19 | 0.22 | 0.11 | 0.11 | 0.12 | 0.14 | 0.15 | 0.15 | — | — | — | — | |||||||
| Synopsys Inc. | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.01 | 0.01 | 0.01 | 0.02 | 0.02 | 0.02 | 0.03 | 0.05 | 0.02 | 0.02 | 0.05 | 0.09 | 0.08 | 0.11 | 0.09 | 0.10 | |||||||
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).
1 Q2 2023 Calculation
Debt to assets = Total debt ÷ Total assets
= 648,551 ÷ 5,155,124 = 0.13
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 Q4 2022 to Q1 2023 and from Q1 2023 to Q2 2023. |
Financial Leverage
Cadence Design Systems Inc., financial leverage calculation (quarterly data)
| Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Oct 1, 2022 | Jul 2, 2022 | Apr 2, 2022 | Dec 31, 2021 | Oct 2, 2021 | Jul 3, 2021 | Apr 3, 2021 | Dec 31, 2020 | Sep 26, 2020 | Jun 27, 2020 | Mar 28, 2020 | Dec 28, 2019 | Sep 28, 2019 | Jun 29, 2019 | Mar 30, 2019 | Dec 29, 2018 | Sep 29, 2018 | Jun 30, 2018 | Mar 31, 2018 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | |||||||||||||||||||||||||||||
| Total assets | 5,155,124) | 5,171,619) | 5,137,071) | 4,968,087) | 4,361,274) | 4,395,067) | 4,386,299) | 4,213,875) | 4,122,548) | 3,998,959) | 3,950,785) | 4,140,152) | 3,999,497) | 3,767,973) | 3,357,225) | 2,662,198) | 2,612,325) | 2,546,311) | 2,468,654) | 2,273,207) | 2,527,865) | 2,486,673) | |||||||
| Stockholders’ equity | 2,908,455) | 2,940,876) | 2,745,113) | 2,708,128) | 2,625,229) | 2,760,183) | 2,740,675) | 2,631,262) | 2,516,743) | 2,542,432) | 2,493,018) | 2,395,718) | 2,256,631) | 2,157,994) | 2,102,894) | 1,480,262) | 1,430,545) | 1,365,837) | 1,288,401) | 1,257,417) | 1,187,988) | 1,142,298) | |||||||
| Solvency Ratio | |||||||||||||||||||||||||||||
| Financial leverage1 | 1.77 | 1.76 | 1.87 | 1.83 | 1.66 | 1.59 | 1.60 | 1.60 | 1.64 | 1.57 | 1.58 | 1.73 | 1.77 | 1.75 | 1.60 | 1.80 | 1.83 | 1.86 | 1.92 | 1.81 | 2.13 | 2.18 | |||||||
| Benchmarks | |||||||||||||||||||||||||||||
| Financial Leverage, Competitors2 | |||||||||||||||||||||||||||||
| Accenture PLC | 2.01 | 2.05 | 2.14 | 2.16 | 2.16 | 2.15 | 2.21 | 2.18 | 2.18 | 2.14 | 2.18 | 2.19 | 2.17 | 2.19 | 2.07 | 2.05 | 2.05 | 2.11 | 2.36 | 2.37 | 2.39 | 2.52 | |||||||
| Adobe Inc. | 1.88 | 1.88 | 1.93 | 1.86 | 1.88 | 1.89 | 1.84 | 1.81 | 1.85 | 1.84 | 1.83 | 1.91 | 1.99 | 2.03 | 1.97 | 1.96 | 1.98 | 1.98 | 2.00 | 1.74 | 1.74 | 1.73 | |||||||
| International Business Machines Corp. | 5.96 | 6.19 | 5.80 | 6.27 | 6.57 | 7.00 | 6.98 | 6.49 | 6.69 | 6.95 | 7.57 | 7.27 | 7.50 | 7.67 | 7.30 | 8.33 | 8.76 | 7.94 | — | — | — | — | |||||||
| Intuit Inc. | 1.72 | 1.69 | 1.69 | 1.68 | 1.69 | 1.53 | 1.57 | 1.58 | 1.65 | 1.85 | 2.14 | 1.64 | 1.80 | 1.70 | 1.68 | 1.70 | 1.91 | 1.77 | 2.20 | 2.45 | 4.23 | 3.38 | |||||||
| Microsoft Corp. | 1.99 | 2.07 | 2.19 | 2.12 | 2.13 | 2.21 | 2.35 | 2.30 | 2.34 | 2.44 | 2.55 | 2.49 | 2.57 | 2.63 | 2.80 | 2.78 | 2.81 | 3.00 | 3.13 | 3.10 | 3.27 | 2.78 | |||||||
| Oracle Corp. | — | — | — | — | — | — | 25.03 | 13.27 | 13.90 | 11.96 | 9.56 | 6.79 | 6.33 | 5.76 | 4.99 | 4.61 | 3.87 | 3.37 | 3.00 | 2.89 | 2.48 | 2.39 | |||||||
| Palo Alto Networks Inc. | 18.06 | 24.69 | 58.35 | 32.88 | 88.29 | 20.09 | 16.14 | 9.59 | 9.15 | 11.68 | 8.23 | 8.73 | 4.47 | 4.50 | 4.16 | 4.31 | 5.33 | 4.63 | 6.03 | 5.41 | 5.73 | 5.24 | |||||||
| Salesforce Inc. | 1.57 | 1.58 | 1.64 | 1.53 | 1.60 | 1.52 | 1.60 | 1.47 | 1.50 | 1.55 | 1.63 | 1.50 | 1.94 | 2.02 | 1.97 | 1.81 | 1.91 | 2.08 | — | — | — | — | |||||||
| ServiceNow Inc. | 2.15 | 2.43 | 2.64 | 2.46 | 2.65 | 2.75 | 2.92 | 2.68 | 2.81 | 2.90 | 3.07 | 2.88 | 2.63 | 2.73 | 2.83 | 3.33 | 3.65 | 3.68 | — | — | — | — | |||||||
| Synopsys Inc. | 1.68 | 1.70 | 1.71 | 1.66 | 1.66 | 1.65 | 1.65 | 1.65 | 1.64 | 1.64 | 1.64 | 1.67 | 1.71 | 1.74 | 1.57 | 1.56 | 1.58 | 1.68 | 1.77 | 1.84 | 1.75 | 1.82 | |||||||
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).
1 Q2 2023 Calculation
Financial leverage = Total assets ÷ Stockholders’ equity
= 5,155,124 ÷ 2,908,455 = 1.77
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 Q4 2022 to Q1 2023 but then slightly increased from Q1 2023 to Q2 2023. |
Interest Coverage
Cadence Design Systems Inc., interest coverage calculation (quarterly data)
| Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Oct 1, 2022 | Jul 2, 2022 | Apr 2, 2022 | Dec 31, 2021 | Oct 2, 2021 | Jul 3, 2021 | Apr 3, 2021 | Dec 31, 2020 | Sep 26, 2020 | Jun 27, 2020 | Mar 28, 2020 | Dec 28, 2019 | Sep 28, 2019 | Jun 29, 2019 | Mar 30, 2019 | Dec 29, 2018 | Sep 29, 2018 | Jun 30, 2018 | Mar 31, 2018 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | |||||||||||||||||||||||||||||
| Net income | 221,120) | 241,804) | 240,392) | 186,305) | 186,920) | 235,335) | 176,579) | 176,307) | 155,900) | 187,169) | 173,738) | 161,630) | 131,288) | 123,988) | 659,675) | 101,514) | 107,235) | 120,555) | 98,425) | 99,318) | 75,149) | 72,885) | |||||||
| Add: Income tax expense | 77,304) | 79,683) | (29,867) | 65,967) | 85,725) | 74,586) | 17,475) | 12,388) | 27,365) | 15,252) | 12,451) | 4,083) | 19,378) | 6,192) | (554,250) | 15,194) | 21,354) | 7,691) | 10,212) | 241) | 14,876) | 5,284) | |||||||
| Add: Interest expense | 8,877) | 9,260) | 9,082) | 5,463) | 4,281) | 4,108) | 4,251) | 4,196) | 4,316) | 4,217) | 4,873) | 5,325) | 5,914) | 4,637) | 4,222) | 4,240) | 4,976) | 5,391) | 4,318) | 5,177) | 6,669) | 6,975) | |||||||
| Earnings before interest and tax (EBIT) | 307,301) | 330,747) | 219,607) | 257,735) | 276,926) | 314,029) | 198,305) | 192,891) | 187,581) | 206,638) | 191,062) | 171,038) | 156,580) | 134,817) | 109,647) | 120,948) | 133,565) | 133,637) | 112,955) | 104,736) | 96,694) | 85,144) | |||||||
| Solvency Ratio | |||||||||||||||||||||||||||||
| Interest coverage1 | 34.13 | 38.63 | 46.58 | 57.84 | 58.34 | 52.92 | 46.26 | 44.21 | 40.38 | 35.68 | 31.50 | 28.46 | 27.45 | 27.61 | 26.44 | 26.48 | 24.41 | 20.79 | 17.27 | — | — | — | |||||||
| Benchmarks | |||||||||||||||||||||||||||||
| Interest Coverage, Competitors2 | |||||||||||||||||||||||||||||
| Accenture PLC | 212.89 | 217.31 | 195.34 | 188.01 | 133.08 | 133.32 | 131.46 | 126.89 | 196.99 | 191.96 | 205.84 | 248.30 | 245.62 | 270.18 | 273.26 | 299.07 | 287.79 | 307.38 | 298.26 | — | — | — | |||||||
| Adobe Inc. | 55.57 | 53.27 | 54.64 | 54.21 | 54.34 | 53.39 | 51.49 | 49.52 | 45.92 | 42.50 | 37.00 | 32.36 | 28.08 | 23.87 | 21.38 | 20.83 | 22.62 | 26.41 | 32.31 | — | — | — | |||||||
| International Business Machines Corp. | 2.34 | 2.25 | 1.95 | 1.59 | 6.01 | 5.40 | 5.19 | 3.79 | 4.56 | 4.97 | 4.60 | 6.54 | 5.90 | 6.64 | 8.56 | — | — | — | — | — | — | — | |||||||
| Intuit Inc. | 16.17 | 19.99 | 32.38 | 55.36 | 62.71 | 93.29 | 89.14 | 92.00 | 89.58 | 120.30 | 158.00 | 158.50 | 164.67 | 148.46 | 126.40 | 122.50 | 104.76 | 82.47 | 76.15 | — | — | — | |||||||
| Oracle Corp. | 4.41 | 3.33 | 3.78 | 3.98 | 4.23 | 6.06 | 6.21 | 6.27 | 6.48 | 6.76 | 7.05 | 7.31 | 7.14 | 6.96 | 6.89 | 6.96 | 6.99 | 7.16 | 7.37 | — | — | — | |||||||
| Palo Alto Networks Inc. | 4.05 | -1.99 | -6.56 | -4.28 | -3.42 | -2.65 | -1.85 | -1.68 | -1.49 | -1.36 | -1.61 | -1.55 | -0.92 | -0.09 | 0.11 | 0.29 | -0.34 | -1.53 | -3.40 | — | — | — | |||||||
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).
1 Q2 2023 Calculation
Interest coverage
= (EBITQ2 2023
+ EBITQ1 2023
+ EBITQ4 2022
+ EBITQ3 2022)
÷ (Interest expenseQ2 2023
+ Interest expenseQ1 2023
+ Interest expenseQ4 2022
+ Interest expenseQ3 2022)
= (307,301 + 330,747 + 219,607 + 257,735)
÷ (8,877 + 9,260 + 9,082 + 5,463)
= 34.13
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 Q4 2022 to Q1 2023 and from Q1 2023 to Q2 2023. |