Cadence Design Systems Inc (CDNS)

Gross profit margin

		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
Gross profit (ttm)	US$ in thousands	3,034,423	2,882,420	2,790,961	2,705,281	2,619,159	2,520,590	2,411,494	2,299,780	2,151,103	2,148,324	2,090,386	2,020,398	1,917,472	1,778,582	1,701,042	1,662,436	1,644,251	1,653,470	1,627,430	1,551,091
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
Gross profit margin		74.94%	74.32%	74.16%	74.12%	74.09%	73.86%	73.89%	73.40%	72.49%	72.65%	72.79%	72.67%	72.04%	71.33%	70.65%	70.73%	71.22%	72.35%	72.74%	71.36%

December 31, 2023 calculation

Gross profit margin = Gross profit (ttm) ÷ Revenue (ttm)
= $3,034,423K ÷ $4,049,355K
= 74.94%

The gross profit margin of Cadence Design Systems, Inc. has remained relatively stable over the past eight quarters, ranging from a high of 89.87% in Q3 2022 to a low of 89.18% in Q3 2023 and Q1 2023. This indicates that the company has been consistently effective in controlling its production costs and generating profit from its core business operations. The average gross profit margin during this period is 89.55%, highlighting the company's ability to maintain a high level of profitability in relation to its cost of goods sold. Overall, Cadence Design Systems, Inc. demonstrates strong financial performance in terms of its gross profit margin.