Analysis of Long-term (Investment) Activity Ratios
Activity ratios measure how efficiently a company performs day-to-day tasks, such us the collection of receivables and management of inventory.
Long-term Activity Ratios (Summary)
Cadence Design Systems Inc., long-term (investment) activity ratios
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).
| Long-term activity ratio | Description | The company |
|---|---|---|
| Net fixed asset turnover | An activity ratio calculated as total revenue divided by net fixed assets. | Cadence Design Systems Inc. net fixed asset turnover ratio improved from 2022 to 2023 but then slightly deteriorated from 2023 to 2024. |
| Net fixed asset turnover (including operating lease, right-of-use asset) | An activity ratio calculated as total revenue divided by net fixed assets (including operating lease, right-of-use asset). | Cadence Design Systems Inc. net fixed asset turnover ratio (with operating lease, right-of-use asset) improved from 2022 to 2023 and from 2023 to 2024. |
| Total asset turnover | An activity ratio calculated as total revenue divided by total assets. | Cadence Design Systems Inc. total asset turnover ratio improved from 2022 to 2023 but then deteriorated significantly from 2023 to 2024. |
| Equity turnover | An activity ratio calculated as total revenue divided by shareholders’ equity. | Cadence Design Systems Inc. equity turnover ratio deteriorated from 2022 to 2023 and from 2023 to 2024. |
Net Fixed Asset Turnover
Cadence Design Systems Inc., net fixed asset turnover calculation, comparison to benchmarks
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||
| Revenue | 4,641,264) | 4,089,986) | 3,561,718) | 2,988,244) | 2,682,891) | |
| Property, plant and equipment, net | 458,200) | 403,213) | 371,451) | 305,911) | 311,125) | |
| Long-term Activity Ratio | ||||||
| Net fixed asset turnover1 | 10.13 | 10.14 | 9.59 | 9.77 | 8.62 | |
| Benchmarks | ||||||
| Net Fixed Asset Turnover, Competitors2 | ||||||
| Accenture PLC | 42.66 | 41.90 | 37.12 | 30.83 | 28.68 | |
| Adobe Inc. | 11.11 | 9.56 | 9.23 | 9.44 | 8.48 | |
| CrowdStrike Holdings Inc. | 4.93 | 4.55 | 5.57 | 5.24 | 3.54 | |
| International Business Machines Corp. | 10.95 | 11.25 | 11.35 | 10.07 | 7.33 | |
| Intuit Inc. | 16.14 | 14.83 | 14.33 | 12.35 | 10.46 | |
| Microsoft Corp. | 1.81 | 2.22 | 2.66 | 2.81 | 3.24 | |
| Oracle Corp. | 2.46 | 2.93 | 4.37 | 5.74 | 6.26 | |
| Palantir Technologies Inc. | 72.29 | 46.59 | 27.55 | 49.26 | 36.99 | |
| Palo Alto Networks Inc. | 22.23 | 19.44 | 15.38 | 13.37 | 9.79 | |
| Salesforce Inc. | 9.45 | 8.47 | 9.41 | 8.64 | 7.20 | |
| ServiceNow Inc. | 6.23 | 6.61 | 6.88 | 7.70 | 6.85 | |
| Synopsys Inc. | 10.88 | 10.48 | 10.51 | 8.90 | 7.62 | |
| Workday Inc. | 5.88 | 5.17 | 4.58 | 4.44 | 3.87 | |
| Net Fixed Asset Turnover, Sector | ||||||
| Software & Services | 3.07 | 3.74 | 4.48 | 4.72 | 5.14 | |
| Net Fixed Asset Turnover, Industry | ||||||
| Information Technology | 3.46 | 3.78 | 4.44 | 4.74 | 4.57 | |
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 fixed asset turnover = Revenue ÷ Property, plant and equipment, net
= 4,641,264 ÷ 458,200 = 10.13
2 Click competitor name to see calculations.
| Long-term activity ratio | Description | The company |
|---|---|---|
| Net fixed asset turnover | An activity ratio calculated as total revenue divided by net fixed assets. | Cadence Design Systems Inc. net fixed asset turnover ratio improved from 2022 to 2023 but then slightly deteriorated from 2023 to 2024. |
Net Fixed Asset Turnover (including Operating Lease, Right-of-Use Asset)
Cadence Design Systems Inc., net fixed asset turnover (including operating lease, right-of-use asset) calculation, comparison to benchmarks
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||
| Revenue | 4,641,264) | 4,089,986) | 3,561,718) | 2,988,244) | 2,682,891) | |
| Property, plant and equipment, net | 458,200) | 403,213) | 371,451) | 305,911) | 311,125) | |
| ROU operating lease assets | 146,190) | 150,797) | 170,379) | 130,124) | 133,354) | |
| Property, plant and equipment, net (including operating lease, right-of-use asset) | 604,390) | 554,010) | 541,830) | 436,035) | 444,479) | |
| Long-term Activity Ratio | ||||||
| Net fixed asset turnover (including operating lease, right-of-use asset)1 | 7.68 | 7.38 | 6.57 | 6.85 | 6.04 | |
| Benchmarks | ||||||
| Net Fixed Asset Turnover (including Operating Lease, Right-of-Use Asset), Competitors2 | ||||||
| Accenture PLC | 15.17 | 15.38 | 13.17 | 10.48 | 9.37 | |
| Adobe Inc. | 9.70 | 8.13 | 7.61 | 7.46 | 6.42 | |
| CrowdStrike Holdings Inc. | 4.57 | 4.21 | 4.97 | 4.30 | 3.54 | |
| International Business Machines Corp. | 7.03 | 7.09 | 7.37 | 6.43 | 5.00 | |
| Intuit Inc. | 11.47 | 9.99 | 8.86 | 8.30 | 8.00 | |
| Microsoft Corp. | 1.59 | 1.93 | 2.26 | 2.37 | 2.70 | |
| Oracle Corp. | 1.84 | 2.31 | 3.21 | 4.20 | 4.74 | |
| Palantir Technologies Inc. | 11.92 | 9.65 | 7.07 | 6.21 | 4.43 | |
| Palo Alto Networks Inc. | 10.75 | 11.16 | 9.17 | 7.32 | 5.62 | |
| Salesforce Inc. | 5.76 | 4.76 | 4.65 | 3.75 | 3.16 | |
| ServiceNow Inc. | 4.47 | 4.33 | 4.18 | 4.34 | 4.06 | |
| Synopsys Inc. | 5.43 | 5.19 | 4.87 | 4.35 | 3.88 | |
| Workday Inc. | 4.77 | 4.29 | 3.75 | 3.11 | 2.96 | |
| Net Fixed Asset Turnover (including Operating Lease, Right-of-Use Asset), Sector | ||||||
| Software & Services | 2.53 | 3.03 | 3.49 | 3.58 | 3.81 | |
| Net Fixed Asset Turnover (including Operating Lease, Right-of-Use Asset), Industry | ||||||
| Information Technology | 3.05 | 3.32 | 3.84 | 4.02 | 3.86 | |
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 fixed asset turnover (including operating lease, right-of-use asset) = Revenue ÷ Property, plant and equipment, net (including operating lease, right-of-use asset)
= 4,641,264 ÷ 604,390 = 7.68
2 Click competitor name to see calculations.
| Long-term activity ratio | Description | The company |
|---|---|---|
| Net fixed asset turnover (including operating lease, right-of-use asset) | An activity ratio calculated as total revenue divided by net fixed assets (including operating lease, right-of-use asset). | Cadence Design Systems Inc. net fixed asset turnover ratio (with operating lease, right-of-use asset) improved from 2022 to 2023 and from 2023 to 2024. |
Total Asset Turnover
Cadence Design Systems Inc., total asset turnover calculation, comparison to benchmarks
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| 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) | |
| Long-term Activity Ratio | ||||||
| Total asset turnover1 | 0.52 | 0.72 | 0.69 | 0.68 | 0.68 | |
| Benchmarks | ||||||
| Total Asset Turnover, Competitors2 | ||||||
| Accenture PLC | 1.16 | 1.25 | 1.30 | 1.17 | 1.20 | |
| Adobe Inc. | 0.71 | 0.65 | 0.65 | 0.58 | 0.53 | |
| CrowdStrike Holdings Inc. | 0.46 | 0.45 | 0.40 | 0.32 | 0.34 | |
| International Business Machines Corp. | 0.46 | 0.46 | 0.48 | 0.43 | 0.47 | |
| Intuit Inc. | 0.51 | 0.52 | 0.46 | 0.62 | 0.70 | |
| Microsoft Corp. | 0.48 | 0.51 | 0.54 | 0.50 | 0.47 | |
| Oracle Corp. | 0.38 | 0.37 | 0.39 | 0.31 | 0.34 | |
| Palantir Technologies Inc. | 0.45 | 0.49 | 0.55 | 0.47 | 0.41 | |
| Palo Alto Networks Inc. | 0.40 | 0.48 | 0.45 | 0.42 | 0.38 | |
| Salesforce Inc. | 0.35 | 0.32 | 0.28 | 0.32 | 0.31 | |
| ServiceNow Inc. | 0.54 | 0.52 | 0.54 | 0.55 | 0.52 | |
| Synopsys Inc. | 0.47 | 0.57 | 0.54 | 0.48 | 0.46 | |
| Workday Inc. | 0.44 | 0.46 | 0.49 | 0.50 | 0.53 | |
| Total Asset Turnover, Sector | ||||||
| Software & Services | 0.49 | 0.51 | 0.52 | 0.49 | 0.48 | |
| Total Asset Turnover, Industry | ||||||
| Information Technology | 0.58 | 0.61 | 0.65 | 0.62 | 0.58 | |
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 Click competitor name to see calculations.
| Long-term activity ratio | Description | The company |
|---|---|---|
| Total asset turnover | An activity ratio calculated as total revenue divided by total assets. | Cadence Design Systems Inc. total asset turnover ratio improved from 2022 to 2023 but then deteriorated significantly from 2023 to 2024. |
Equity Turnover
Cadence Design Systems Inc., equity turnover calculation, comparison to benchmarks
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||
| Revenue | 4,641,264) | 4,089,986) | 3,561,718) | 2,988,244) | 2,682,891) | |
| Stockholders’ equity | 4,673,578) | 3,404,271) | 2,745,113) | 2,740,675) | 2,493,018) | |
| Long-term Activity Ratio | ||||||
| Equity turnover1 | 0.99 | 1.20 | 1.30 | 1.09 | 1.08 | |
| Benchmarks | ||||||
| Equity Turnover, Competitors2 | ||||||
| Accenture PLC | 2.29 | 2.50 | 2.79 | 2.59 | 2.61 | |
| Adobe Inc. | 1.52 | 1.18 | 1.25 | 1.07 | 0.97 | |
| CrowdStrike Holdings Inc. | 1.33 | 1.53 | 1.42 | 1.00 | 0.65 | |
| International Business Machines Corp. | 2.30 | 2.75 | 2.76 | 3.03 | 3.57 | |
| Intuit Inc. | 0.88 | 0.83 | 0.77 | 0.98 | 1.50 | |
| Microsoft Corp. | 0.91 | 1.03 | 1.19 | 1.18 | 1.21 | |
| Oracle Corp. | 6.08 | 46.56 | — | 7.73 | 3.24 | |
| Palantir Technologies Inc. | 0.57 | 0.64 | 0.74 | 0.67 | 0.72 | |
| Palo Alto Networks Inc. | 1.55 | 3.94 | 26.20 | 6.71 | 3.09 | |
| Salesforce Inc. | 0.58 | 0.54 | 0.46 | 0.51 | 0.50 | |
| ServiceNow Inc. | 1.14 | 1.18 | 1.44 | 1.60 | 1.59 | |
| Synopsys Inc. | 0.68 | 0.95 | 0.92 | 0.79 | 0.75 | |
| Workday Inc. | 0.90 | 1.11 | 1.13 | 1.32 | 1.46 | |
| Equity Turnover, Sector | ||||||
| Software & Services | 1.15 | 1.30 | 1.43 | 1.43 | 1.51 | |
| Equity Turnover, Industry | ||||||
| Information Technology | 1.42 | 1.56 | 1.74 | 1.79 | 1.82 | |
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
Equity turnover = Revenue ÷ Stockholders’ equity
= 4,641,264 ÷ 4,673,578 = 0.99
2 Click competitor name to see calculations.
| Long-term activity ratio | Description | The company |
|---|---|---|
| Equity turnover | An activity ratio calculated as total revenue divided by shareholders’ equity. | Cadence Design Systems Inc. equity turnover ratio deteriorated from 2022 to 2023 and from 2023 to 2024. |