Cadence Design Systems Inc (CDNS)
Operating return on assets (Operating ROA)
| 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 |
| Total assets | US$ in thousands | 8,974,480 | 9,167,030 | 7,225,740 | 5,722,130 | 5,669,490 | 5,431,380 | 5,155,120 | 5,171,620 | 5,137,070 | 4,968,090 | 4,361,270 | 4,395,070 | 4,386,300 | 4,213,880 | 4,122,550 | 3,998,960 | 3,950,780 | 4,140,150 | 3,999,500 | 3,767,970 |
| Operating ROA | 15.09% | 13.48% | 16.30% | 20.63% | 22.09% | 20.73% | 21.22% | 20.83% | 20.90% | 21.30% | 22.73% | 20.34% | 17.76% | 18.23% | 18.04% | 17.76% | 16.34% | 13.75% | 13.03% | 13.34% |
December 31, 2024 calculation
Operating ROA = Operating income (ttm) ÷ Total assets
= $1,354,410K ÷ $8,974,480K
= 15.09%
Cadence Design Systems Inc's operating return on assets (operating ROA) has shown fluctuations over the period from March 31, 2020, to December 31, 2024. The operating ROA started at 13.34% in March 2020 and increased gradually to reach a peak of 22.73% in June 2022. However, there was a slight decline in the operating ROA in the subsequent quarters, dropping to 13.48% by September 2024.
It is important to note that the operating ROA measures the efficiency of the company in generating profits from its assets used in operations. The increasing trend in operating ROA from 2020 to 2022 indicates improved operational performance and asset utilization. However, the subsequent decrease in the operating ROA from 2022 to 2024 may suggest potential challenges in maintaining profitability and efficiency.
Overall, monitoring the operating ROA can provide insights into Cadence Design Systems Inc's ability to generate earnings relative to its assets and can be used to assess its operational efficiency and performance over time.
Peer comparison
Dec 31, 2024