Cadence Design Systems Inc (CDNS)

Net profit margin

		Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	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
Net income (ttm)	US$ in thousands	1,055,484	1,039,173	1,055,383	1,046,983	1,041,144	957,637	889,621	855,421	848,952	785,139	775,141	744,121	695,955	693,114	678,437	653,825	590,644	1,076,581	1,016,465	992,412
Revenue (ttm)	US$ in thousands	4,641,260	4,353,900	4,161,490	4,077,389	4,089,979	3,921,236	3,800,700	3,681,642	3,561,718	3,434,877	3,283,218	3,153,982	2,988,244	2,975,117	2,890,829	2,800,962	2,682,891	2,522,537	2,435,533	2,377,534
Net profit margin		22.74%	23.87%	25.36%	25.68%	25.46%	24.42%	23.41%	23.23%	23.84%	22.86%	23.61%	23.59%	23.29%	23.30%	23.47%	23.34%	22.02%	42.68%	41.73%	41.74%

December 31, 2024 calculation

Net profit margin = Net income (ttm) ÷ Revenue (ttm)
= $1,055,484K ÷ $4,641,260K
= 22.74%

Cadence Design Systems Inc's net profit margin has shown some fluctuations over the period from March 31, 2020, to December 31, 2024. The net profit margin started at a high level of 41.74% in March 2020, demonstrating strong profitability. The margin remained relatively stable around the 40% mark until September 2020, when it increased to 42.68%.

However, there was a significant drop in net profit margin in the following quarter, December 2020, reaching 22.02%. This decline may have been influenced by various factors affecting the company's profitability during that period.

Subsequently, from March 2021 to December 2024, the net profit margin displayed a gradual increasing trend, ranging from 22.74% to 25.68%. Notably, the margin improved consistently from March 2023 onwards, with the highest value recorded in December 2023 at 25.46%.

Overall, Cadence Design Systems Inc's net profit margin shows periodic fluctuations but generally reflects a reasonable level of profitability, with an increasing trend in recent quarters. This indicates the company's ability to effectively manage costs and generate profits from its operations over the analyzed period.