Cadence Design Systems Inc (CDNS)

Net profit margin

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Net income	US$ in thousands	1,055,480	1,041,140	848,952	695,955	590,644
Revenue	US$ in thousands	4,641,260	4,089,990	3,561,720	2,988,240	2,682,890
Net profit margin		22.74%	25.46%	23.84%	23.29%	22.02%

December 31, 2024 calculation

Net profit margin = Net income ÷ Revenue
= $1,055,480K ÷ $4,641,260K
= 22.74%

Cadence Design Systems Inc's net profit margin has shown a generally positive trend over the years, increasing from 22.02% in December 2020 to 23.29% in December 2021, further rising to 23.84% in December 2022, and continuing to improve to 25.46% by December 2023. However, there was a slight decrease in the net profit margin to 22.74% by the end of December 2024.

The upward trend in net profit margin indicates that Cadence Design Systems Inc has been effectively managing its expenses relative to its revenue, resulting in a higher proportion of revenue translating into net profit. The slight decrease in 2024 may suggest a potential shift in the company's cost structure or revenue dynamics that impacted profitability during that year. Overall, the company has demonstrated a consistent ability to generate profits relative to its revenue over the period analyzed.