Cadence Design Systems Inc (CDNS)

Fixed asset turnover

		Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Revenue (ttm)	US$ in thousands	4,049,355	3,878,358	3,763,680	3,650,044	3,535,272	3,412,551	3,263,458	3,133,398	2,967,551	2,957,138	2,871,721	2,780,256	2,661,765	2,493,526	2,407,607	2,350,546	2,308,577	2,285,432	2,237,360	2,173,639
Property, plant and equipment	US$ in thousands	403,213	379,776	370,193	372,956	371,451	348,238	316,741	310,690	305,911	303,313	301,979	305,089	311,125	288,163	282,738	281,207	275,855	259,453	257,882	253,392
Fixed asset turnover		10.04	10.21	10.17	9.79	9.52	9.80	10.30	10.09	9.70	9.75	9.51	9.11	8.56	8.65	8.52	8.36	8.37	8.81	8.68	8.58

December 31, 2023 calculation

Fixed asset turnover = Revenue (ttm) ÷ Property, plant and equipment
= $4,049,355K ÷ $403,213K
= 10.04

Cadence Design Systems, Inc.'s fixed asset turnover ratio has been relatively stable and high over the past eight quarters, ranging from 9.59 to 10.37. A high fixed asset turnover ratio indicates that the company is generating significant revenues relative to its investment in fixed assets.

The Q3 2023 fixed asset turnover ratio of 10.33 was slightly higher than the Q4 2023 ratio of 10.14, suggesting that the company efficiently utilized its fixed assets to generate revenue in Q3. However, the Q1 2023 ratio decreased to 9.87, which may indicate a temporary decline in efficiency in that quarter.

Overall, the consistently high fixed asset turnover ratios demonstrate Cadence Design Systems, Inc.'s strong ability to generate revenue from its fixed asset base. This efficiency in asset utilization is a positive sign for investors and indicates effective management of the company's fixed assets.