Cadence Design Systems Inc (CDNS)

Total 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
Total assets	US$ in thousands	5,669,490	5,431,380	5,155,120	5,171,620	5,137,070	4,968,090	4,361,270	4,395,070	4,386,300	4,213,880	4,122,550	3,998,960	3,950,780	4,140,150	3,999,500	3,767,970	3,357,220	2,662,200	2,612,320	2,546,310
Total asset turnover		0.71	0.71	0.73	0.71	0.69	0.69	0.75	0.71	0.68	0.70	0.70	0.70	0.67	0.60	0.60	0.62	0.69	0.86	0.86	0.85

December 31, 2023 calculation

Total asset turnover = Revenue (ttm) ÷ Total assets
= $4,049,355K ÷ $5,669,490K
= 0.71

Cadence Design Systems, Inc. has shown relatively stable total asset turnover ratios over the past eight quarters, ranging from 0.69 to 0.75. The total asset turnover ratio measures the efficiency with which the company is utilizing its assets to generate revenue. A higher ratio indicates better asset utilization.

In the given periods, the total asset turnover ratio has hovered around 0.72, suggesting that for each dollar of assets held by the company, it generated approximately $0.72 in revenue. This implies that Cadence Design Systems has been moderately effective in generating sales relative to its asset base.

However, fluctuations in the ratio over time may indicate changes in the company's operating efficiency or asset management practices. It would be important to delve deeper into the company's financial and operational performance to understand the factors influencing its total asset turnover ratios.