Cadence Design Systems Inc (CDNS)

Operating return on assets (Operating ROA)

		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	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Operating income (ttm)	US$ in thousands	1,251,225	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	491,796	496,587	479,391	438,772
Total assets	US$ in thousands	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	3,357,220	2,662,200	2,612,320	2,546,310
Operating ROA		22.07%	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%	14.65%	18.65%	18.35%	17.23%

December 31, 2023 calculation

Operating ROA = Operating income (ttm) ÷ Total assets
= $1,251,225K ÷ $5,669,490K
= 22.07%

Cadence Design Systems, Inc.'s operating return on assets (operating ROA) has shown relatively consistent performance over the past eight quarters, ranging from 20.33% to 22.73%. The company's average operating ROA over this period is around 21.24%. This indicates that, on average, Cadence Design Systems has been able to generate approximately 21.24 cents of operating profit for every dollar of assets employed in its operations.

The stability and relatively high levels of operating ROA suggest that the company is effectively utilizing its assets to generate profits. This could be attributed to efficient management of resources, cost control measures, and effective revenue generation strategies.

Overall, the operating ROA trend for Cadence Design Systems, Inc. reflects a consistent ability to generate operating profits relative to its asset base, which is a positive indicator of the company's operational efficiency and profitability.