Cadence Design Systems Inc (CDNS)

Operating profit margin

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Operating income	US$ in thousands	1,350,760	1,251,220	1,073,690	779,089	645,552
Revenue	US$ in thousands	4,641,260	4,089,990	3,561,720	2,988,240	2,682,890
Operating profit margin		29.10%	30.59%	30.15%	26.07%	24.06%

December 31, 2024 calculation

Operating profit margin = Operating income ÷ Revenue
= $1,350,760K ÷ $4,641,260K
= 29.10%

Cadence Design Systems Inc has shown a consistent improvement in its operating profit margin over the years. The operating profit margin increased from 24.06% in December 31, 2020, to 26.07% in December 31, 2021, indicating an upward trend in profitability. Subsequently, the margin continued to rise to 30.15% in December 31, 2022, and further to 30.59% in December 31, 2023, showcasing the company's ability to effectively manage its operating expenses and generate higher profits from its operations.

However, there was a slight decline in the operating profit margin to 29.10% in December 31, 2024. Despite this decrease, the overall performance of Cadence Design Systems Inc in terms of operating profit margin remains strong, reflecting efficient cost controls and potentially increased revenues relative to its operating expenses. This consistent improvement in operating profit margin demonstrates the company's operational efficiency and strategic management of its resources over the analyzed period.