Cadence Design Systems Inc (CDNS)

Return on assets (ROA)

		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	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Net income (ttm)	US$ in thousands	1,041,144	957,637	889,621	855,421	848,952	785,139	775,141	744,121	695,955	693,114	678,437	653,825	590,644	1,076,581	1,016,465	992,412	988,979	427,729	425,533	393,447
Total assets	US$ in thousands	5,669,490	5,431,380	5,155,120	5,171,620	5,137,070	4,968,090	4,361,270	4,395,070	4,386,300	4,213,880	4,122,550	3,998,960	3,950,780	4,140,150	3,999,500	3,767,970	3,357,220	2,662,200	2,612,320	2,546,310
ROA		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%	29.46%	16.07%	16.29%	15.45%

December 31, 2023 calculation

ROA = Net income (ttm) ÷ Total assets
= $1,041,144K ÷ $5,669,490K
= 18.36%

Cadence Design Systems, Inc.'s return on assets (ROA) has shown a generally positive trend over the past eight quarters. The ROA has consistently increased from 15.80% in Q3 2022 to 18.36% in Q4 2023. This indicates that the company has been effective in generating profit relative to its total assets.

The fluctuation in ROA values between quarters is relatively small, with the highest ROA recorded in Q4 2023 at 18.36% and the lowest in Q2 2023 at 17.26%. Overall, Cadence Design Systems has been maintaining a strong performance in utilizing its assets efficiently to generate profit.

The average ROA for the period under review is approximately 17.10%, indicating that the company is consistently generating earnings in relation to its assets. This suggests that Cadence Design Systems is effectively managing its assets to create value for its stakeholders.