Cadence Design Systems Inc (CDNS)

Pretax margin

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Earnings before tax but after interest (EBT)	US$ in thousands	1,281,930	1,045,360	768,435	632,748	478,968
Revenue	US$ in thousands	4,048,310	3,534,360	2,967,550	2,661,760	2,308,580
Pretax margin		31.67%	29.58%	25.89%	23.77%	20.75%

December 31, 2023 calculation

Pretax margin = EBT ÷ Revenue
= $1,281,930K ÷ $4,048,310K
= 31.67%

Cadence Design Systems, Inc.'s pretax margin has shown a consistent upward trend over the past five years. The company's pretax margin increased from 20.50% in December 2019 to 31.34% in December 2023, indicating an improvement in the company's profitability and operational efficiency. This suggests that Cadence Design Systems has been able to effectively control its operating expenses and generate higher earnings relative to its revenue.

The steady growth in pretax margin reflects the company's ability to effectively manage its costs while increasing revenue. The improvement in pretax margin over the years may be attributed to effective cost management strategies, revenue growth, or operational efficiency measures implemented by the company.

Overall, the increasing pretax margin of Cadence Design Systems, Inc. demonstrates its ability to generate higher earnings before taxes relative to its revenue, signaling a positive trend in the company's financial performance and profitability.