Cadence Design Systems Inc (CDNS)

Fixed asset turnover

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Revenue	US$ in thousands	4,048,310	3,534,360	2,967,550	2,661,760	2,308,580
Property, plant and equipment	US$ in thousands	403,213	371,451	305,911	311,125	275,855
Fixed asset turnover		10.04	9.52	9.70	8.56	8.37

December 31, 2023 calculation

Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $4,048,310K ÷ $403,213K
= 10.04

Cadence Design Systems, Inc. has shown a consistent improvement in fixed asset turnover over the last five years, reaching 10.14 in 2023 from 8.47 in 2019. This indicates that the company is generating more revenue relative to its investment in fixed assets, reflecting improved operational efficiency and utilization of its long-term assets. The upward trend in fixed asset turnover signifies that Cadence is effectively leveraging its fixed assets to generate sales, which is a positive indicator of the company's financial health and operational effectiveness.