Cadence Design Systems Inc (CDNS)

Return on total capital

		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
Earnings before interest and tax (EBIT) (ttm)	US$ in thousands	1,318,111	1,166,667	1,115,390	1,085,015	1,068,297	1,046,995	982,151	892,806	785,415	778,172	756,319	725,318	653,497	572,082	521,992	498,977	497,797	501,105	484,893	448,022
Long-term debt	US$ in thousands	299,771	648,801	648,551	648,301	648,078	—	—	—	347,588	—	—	—	346,793	346,584	346,394	346,205	346,019	345,833	345,652	345,470
Total stockholders’ equity	US$ in thousands	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	2,102,890	1,480,260	1,430,540	1,365,840
Return on total capital		35.59%	31.01%	31.36%	30.23%	31.48%	38.66%	37.41%	32.35%	25.43%	29.57%	30.05%	28.53%	23.01%	20.86%	20.05%	19.93%	20.33%	27.44%	27.30%	26.18%

December 31, 2023 calculation

Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $1,318,111K ÷ ($299,771K + $3,404,270K)
= 35.59%

Cadence Design Systems, Inc. has shown consistent performance in terms of return on total capital over the past eight quarters. The return on total capital fluctuated between 28.74% and 33.34% during this period, with an average of approximately 30.50%.

The company's ability to generate returns on the total capital employed indicates efficient utilization of both debt and equity to generate profits. The consistently high return on total capital reflects the company's effective management of its resources and investments.

Overall, Cadence Design Systems, Inc. has demonstrated a strong performance in terms of return on total capital, which is a positive indicator of its financial health and operational efficiency.