Cadence Design Systems Inc (CDNS)
Gross profit margin
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Gross profit | US$ in thousands | 3,030,480 | 2,618,050 | 2,149,500 | 1,917,470 | 1,623,100 |
| Revenue | US$ in thousands | 4,048,310 | 3,534,360 | 2,967,550 | 2,661,760 | 2,308,580 |
| Gross profit margin | 74.86% | 74.07% | 72.43% | 72.04% | 70.31% |
December 31, 2023 calculation
Gross profit margin = Gross profit ÷ Revenue
= $3,030,480K ÷ $4,048,310K
= 74.86%
Cadence Design Systems, Inc. has demonstrated a relatively stable gross profit margin over the past five years, with figures ranging from 88.60% to 89.73%. This indicates that the company has been effectively managing its production costs and generating a consistent level of profitability from its core operations. The slight fluctuations in the gross profit margin suggest that Cadence Design Systems has maintained a good control over its cost of goods sold while successfully pricing its products or services to achieve desirable margins. The company's ability to sustain a high gross profit margin over the years reflects positively on its operational efficiency and pricing strategy, which are crucial factors for long-term financial success.
Peer comparison
Dec 31, 2023