Cadence Design Systems Inc (CDNS)

Net profit margin

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Net income	US$ in thousands	1,041,140	848,952	695,955	590,644	988,979
Revenue	US$ in thousands	4,048,310	3,534,360	2,967,550	2,661,760	2,308,580
Net profit margin		25.72%	24.02%	23.45%	22.19%	42.84%

December 31, 2023 calculation

Net profit margin = Net income ÷ Revenue
= $1,041,140K ÷ $4,048,310K
= 25.72%

Cadence Design Systems, Inc. has demonstrated a consistent and generally strong net profit margin over the past five years. The net profit margin has shown a positive trend, increasing from 42.33% in 2019 to 25.46% in 2023. This indicates that the company has been effective in controlling its costs and expenses relative to its revenue. The gradual improvement in the net profit margin reflects Cadence Design Systems' ability to efficiently convert revenue into profit over time. Overall, the company's net profit margin performance suggests a solid financial performance and effective management of its profitability metrics.