Cadence Design Systems Inc (CDNS)

Return on assets (ROA)

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Net income	US$ in thousands	1,055,480	1,041,140	848,952	695,955	590,644
Total assets	US$ in thousands	8,974,480	5,669,490	5,137,070	4,386,300	3,950,780
ROA		11.76%	18.36%	16.53%	15.87%	14.95%

December 31, 2024 calculation

ROA = Net income ÷ Total assets
= $1,055,480K ÷ $8,974,480K
= 11.76%

Cadence Design Systems Inc's return on assets (ROA) has shown a positive trend over the past five years. Starting at 14.95% on December 31, 2020, the ROA increased steadily to reach 18.36% by December 31, 2023. This indicates the company's ability to generate earnings from its assets efficiently. However, there was a slight decrease in ROA to 11.76% by December 31, 2024, which may suggest a decrease in asset efficiency or profitability during that period. Overall, the upward trend in ROA demonstrates Cadence Design Systems Inc's ability to utilize its assets effectively to generate returns for its shareholders.