Cadence Design Systems Inc (CDNS)

Operating profit margin

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Operating income	US$ in thousands	1,251,220	1,073,690	779,089	645,552	491,796
Revenue	US$ in thousands	4,048,310	3,534,360	2,967,550	2,661,760	2,308,580
Operating profit margin		30.91%	30.38%	26.25%	24.25%	21.30%

December 31, 2023 calculation

Operating profit margin = Operating income ÷ Revenue
= $1,251,220K ÷ $4,048,310K
= 30.91%

Cadence Design Systems, Inc.'s operating profit margin has shown a consistent positive trend over the past five years. The company's operating profit margin has steadily increased from 21.42% in December 2019 to 30.86% in December 2023. This indicates the company's ability to efficiently manage its operating expenses relative to its revenue generation. The consistent improvement in the operating profit margin reflects Cadence Design Systems, Inc.'s effective cost control measures and operational efficiency, which have contributed to the company's profitability growth over the years. Overall, the increasing trend in the operating profit margin demonstrates the company's strength in generating profits from its core business operations.