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.