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.
Peer comparison
Dec 31, 2023