Cadence Design Systems Inc (CDNS)
Total asset turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 4,641,260 | 4,089,990 | 3,561,720 | 2,988,240 | 2,682,890 |
| Total assets | US$ in thousands | 8,974,480 | 5,669,490 | 5,137,070 | 4,386,300 | 3,950,780 |
| Total asset turnover | 0.52 | 0.72 | 0.69 | 0.68 | 0.68 |
December 31, 2024 calculation
Total asset turnover = Revenue ÷ Total assets
= $4,641,260K ÷ $8,974,480K
= 0.52
Cadence Design Systems Inc's total asset turnover has shown a relatively stable trend over the past five years. The ratio has ranged from 0.52 to 0.72, with a slight improvement from 2020 to 2024.
A total asset turnover ratio of less than 1 indicates that the company is generating less in sales than the value of its assets. In the case of Cadence Design Systems Inc, the ratios suggest that the company is not efficiently utilizing its assets to generate revenue.
The slight increase in the total asset turnover ratio from 2020 to 2024 may signify some improvement in the company's efficiency in generating sales from its assets. However, the ratio is still below 1, indicating room for further enhancement in asset utilization to maximize revenue generation.
Overall, Cadence Design Systems Inc's total asset turnover ratios suggest that the company may benefit from focusing on strategies to improve the efficiency of its asset management to drive higher revenue generation.
Peer comparison
Dec 31, 2024