Cadence Design Systems Inc (CDNS)
Pretax margin
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before tax but after interest (EBT) | US$ in thousands | 1,395,820 | 1,281,930 | 1,045,360 | 768,435 | 632,748 |
| Revenue | US$ in thousands | 4,641,260 | 4,089,990 | 3,561,720 | 2,988,240 | 2,682,890 |
| Pretax margin | 30.07% | 31.34% | 29.35% | 25.72% | 23.58% |
December 31, 2024 calculation
Pretax margin = EBT ÷ Revenue
= $1,395,820K ÷ $4,641,260K
= 30.07%
Cadence Design Systems Inc's pretax margin has shown a positive trend over the past five years, increasing from 23.58% in December 2020 to 30.07% in December 2024. This indicates that the company has been effectively managing its operating expenses relative to its revenue, resulting in higher profitability before taxes. The steady improvement in pretax margin demonstrates the company's ability to generate more earnings from its core operations while efficiently controlling costs. Overall, the upward trajectory of Cadence Design Systems Inc's pretax margin reflects a strong financial performance and effective operational management.
Peer comparison
Dec 31, 2024