Cadence Design Systems Inc (CDNS)
Return on assets (ROA)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 1,041,140 | 848,952 | 695,955 | 590,644 | 988,979 |
| Total assets | US$ in thousands | 5,669,490 | 5,137,070 | 4,386,300 | 3,950,780 | 3,357,220 |
| ROA | 18.36% | 16.53% | 15.87% | 14.95% | 29.46% |
December 31, 2023 calculation
ROA = Net income ÷ Total assets
= $1,041,140K ÷ $5,669,490K
= 18.36%
Cadence Design Systems, Inc.'s return on assets (ROA) has shown a positive trend over the past five years. The ROA has consistently improved from 14.95% in January 2, 2021, to 18.36% in December 31, 2023. This indicates that the company has been effective in generating profits relative to its total assets over the years. The significant increase in ROA from 2019 to 2023 shows a substantial improvement in asset utilization and operational efficiency. This improvement may suggest better management of assets and increased profitability. Overall, the company's ROA trend reflects positively on its ability to generate earnings from its asset base and indicates efficient financial management.
Peer comparison
Dec 31, 2023