Cadence Design Systems Inc (CDNS)
Profitability ratios
Return on sales
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross profit margin | 91.54% | 89.91% | 88.10% | 89.06% | 89.24% | 89.18% | 89.41% | 89.18% | 89.57% | 89.87% | 89.74% | 89.83% | 89.73% | 89.55% | 89.05% | 88.75% | 88.61% | 87.90% | 88.34% | 88.63% |
| Operating profit margin | 29.18% | 28.37% | 28.31% | 28.95% | 30.62% | 28.71% | 28.78% | 29.26% | 30.15% | 30.81% | 30.20% | 28.35% | 26.07% | 25.83% | 25.72% | 25.35% | 24.06% | 22.58% | 21.39% | 21.15% |
| Pretax margin | 30.07% | 30.35% | 30.94% | 31.16% | 31.34% | 28.83% | 28.49% | 28.71% | 29.35% | 29.95% | 29.40% | 27.77% | 25.72% | 25.56% | 25.51% | 25.17% | 23.58% | 21.88% | 20.65% | 20.23% |
| Net profit margin | 22.74% | 23.87% | 25.36% | 25.68% | 25.46% | 24.42% | 23.41% | 23.23% | 23.84% | 22.86% | 23.61% | 23.59% | 23.29% | 23.30% | 23.47% | 23.34% | 22.02% | 42.68% | 41.73% | 41.74% |
Cadence Design Systems Inc has shown a consistently high gross profit margin ranging from 88.10% to 91.54% over the past five years. This indicates the company's ability to generate profits after accounting for the cost of goods sold.
The operating profit margin of Cadence Design Systems has also exhibited an upward trend, fluctuating between 28.31% and 30.81% during the same period. This demonstrates the company's efficiency in managing its operating expenses while generating profits from its core operations.
The pretax margin has shown an increasing trend from 20.23% to 31.34% over the past five years. This indicates the company's ability to control costs and expenses before accounting for taxes, resulting in higher profitability.
On the other hand, the net profit margin of Cadence Design Systems has fluctuated between 22.02% and 25.68% during the same period. This indicates the company's ability to translate its revenues into net profits after accounting for all expenses including taxes, interest, and depreciation.
Overall, Cadence Design Systems Inc has demonstrated strong profitability ratios over the past five years, showing efficient cost management and the ability to generate profits across its operations.
Return on investment
| 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 return on assets (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% |
| Return on assets (ROA) | 11.76% | 11.34% | 14.61% | 18.30% | 18.36% | 17.63% | 17.26% | 16.54% | 16.53% | 15.80% | 17.77% | 16.93% | 15.87% | 16.45% | 16.46% | 16.35% | 14.95% | 26.00% | 25.41% | 26.34% |
| Return on total capital | 23.83% | 28.74% | 29.64% | 35.68% | 37.74% | 37.47% | 38.35% | 36.89% | 38.92% | 38.66% | 37.41% | 32.35% | 28.55% | 29.37% | 29.81% | 28.26% | 26.03% | 23.95% | 23.15% | 23.13% |
| Return on equity (ROE) | 17.46% | 22.77% | 24.77% | 29.35% | 30.58% | 30.75% | 30.59% | 29.09% | 30.93% | 28.99% | 29.53% | 26.96% | 25.39% | 26.34% | 26.96% | 25.72% | 23.69% | 44.94% | 45.04% | 45.99% |
Cadence Design Systems Inc has shown a consistent improvement in its profitability ratios over the years. The Operating Return on Assets (Operating ROA) has been steadily increasing from 13.34% in March 2020 to 22.09% in December 2023, with a slight decrease to 15.09% in December 2024. This indicates the company's ability to generate operating profits from its assets.
The Return on Assets (ROA) also followed a similar trend, increasing from 26.34% in March 2020 to 18.36% in December 2023, before declining to 11.76% in December 2024. This ratio reflects the company's efficiency in generating profits relative to its total assets.
The Return on Total Capital demonstrates a significant improvement, rising from 23.13% in March 2020 to 38.92% in December 2022, before declining slightly to 23.83% in December 2024. This ratio indicates the company's ability to generate returns for both equity and debt holders.
Furthermore, the Return on Equity (ROE) also displayed a positive trajectory, increasing from 45.99% in March 2020 to 30.58% in December 2023, before decreasing to 17.46% in December 2024. ROE reflects the company's ability to generate returns for its shareholders based on their equity investment.
Overall, Cadence Design Systems Inc has shown strong profitability ratios over the years, with some fluctuations in certain periods. The company's ability to maintain high returns on assets, total capital, and equity indicates effective management of its resources and operations.
See also:
Cadence Design Systems Inc Profitability Ratios (Quarterly Data)