Cadence Design Systems Inc (CDNS)

Return on equity (ROE)

		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
Net income (ttm)	US$ in thousands	1,055,484	1,039,173	1,055,383	1,046,983	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
Total stockholders’ equity	US$ in thousands	6,043,680	4,563,340	4,260,890	3,567,600	3,404,270	3,113,890	2,908,460	2,940,880	2,745,110	2,708,130	2,625,230	2,760,180	2,740,680	2,631,260	2,516,740	2,542,430	2,493,020	2,395,720	2,256,630	2,157,990
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%

December 31, 2024 calculation

ROE = Net income (ttm) ÷ Total stockholders’ equity
= $1,055,484K ÷ $6,043,680K
= 17.46%

Cadence Design Systems Inc has experienced fluctuations in its return on equity (ROE) over the past few years, as evidenced by the data provided. The ROE stood at a high of 45.99% as of March 31, 2020, and remained relatively stable around the mid-40% range until the end of 2021. However, there was a noticeable decline in ROE to 25.39% by December 31, 2021.

Subsequently, there was a gradual improvement in ROE, with the ratio increasing to 30.93% by December 31, 2022, the highest level since the early data points. However, a slight decrease was observed in the following quarters, with the ROE ranging from 22.77% to 30.59% as of June 30, 2024.

Although there has been some volatility in Cadence Design Systems Inc's ROE, the company has managed to maintain generally healthy returns for its shareholders. It is important for investors to monitor these fluctuations in ROE to assess the company's efficiency in generating returns from shareholders' equity.