Cadence Design Systems Inc (CDNS)

Operating return on assets (Operating ROA)

		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
Total assets	US$ in thousands	5,669,490	5,137,070	4,386,300	3,950,780	3,357,220
Operating ROA		22.07%	20.90%	17.76%	16.34%	14.65%

December 31, 2023 calculation

Operating ROA = Operating income ÷ Total assets
= $1,251,220K ÷ $5,669,490K
= 22.07%

Cadence Design Systems, Inc.'s operating return on assets (operating ROA) has shown a consistent upward trend over the past five years. The company's operating ROA increased from 14.91% at the end of December 2019 to 22.26% at the end of December 2023. This indicates that the company has been effectively utilizing its assets to generate operating income.

The improvement in operating ROA signifies that Cadence Design Systems, Inc. has been able to enhance its operational efficiency and profitability over the years. It suggests that the company's management has been successful in optimizing the use of its assets to generate higher operating returns.

The steady increase in operating ROA implies that Cadence Design Systems, Inc. has been able to generate more operating income for each dollar of assets employed in its operations. This is a positive indication of the company's financial health and operational performance.

Overall, the rising trend in operating ROA for Cadence Design Systems, Inc. reflects positively on the company's ability to translate its assets into operating profits efficiently.