Cadence Design Systems Inc (CDNS)

Operating 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
Operating income (ttm)	US$ in thousands	1,354,410	1,235,294	1,178,144	1,180,229	1,252,456	1,125,814	1,093,660	1,077,220	1,073,686	1,058,249	991,531	894,081	779,089	768,388	743,626	710,138	645,552	569,472	521,026	502,751
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
Operating profit margin		29.18%	28.37%	28.31%	28.95%	30.62%	28.71%	28.78%	29.26%	30.15%	30.81%	30.20%	28.35%	26.07%	25.83%	25.72%	25.35%	24.06%	22.58%	21.39%	21.15%

December 31, 2024 calculation

Operating profit margin = Operating income (ttm) ÷ Revenue (ttm)
= $1,354,410K ÷ $4,641,260K
= 29.18%

Cadence Design Systems Inc has shown a generally positive trend in its operating profit margin over the reported periods. The operating profit margin has improved from 21.15% in March 2020 to 29.18% in December 2024. The company experienced fluctuations during this period, reaching a peak of 30.81% in September 2022 before decreasing slightly in the subsequent quarters.

The operating profit margin measures how efficiently the company is generating profit from its core operations. The increasing trend indicates that Cadence Design Systems Inc has been effectively controlling its operating expenses and improving revenue generation over time. However, the slight fluctuations in the margin suggest that the company may have faced some challenges in certain periods that impacted its profitability.

Overall, the progressive trend in the operating profit margin demonstrates the company's ability to effectively manage its operational costs and optimize its revenue streams, leading to improved profitability over the reported period. It would be important for stakeholders to monitor future developments to ensure the company maintains and potentially enhances its operating profit margin in the future.