Cadence Design Systems Inc (CDNS)

Debt-to-assets ratio

		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
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 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
Debt-to-assets ratio		0.05	0.12	0.13	0.13	0.13	0.00	0.00	0.00	0.08	0.00	0.00	0.00	0.09	0.08	0.09	0.09	0.10	0.13	0.13	0.14

December 31, 2023 calculation

Debt-to-assets ratio = Long-term debt ÷ Total assets
= $299,771K ÷ $5,669,490K
= 0.05

The debt-to-assets ratio of Cadence Design Systems, Inc. has been relatively stable over the past eight quarters, ranging from 0.08 to 0.16. A lower debt-to-assets ratio indicates a lower level of financial leverage and suggests that the company relies less on debt financing to operate its business.

The trend in the debt-to-assets ratio shows an increase from 0.08 in Q2 2022 to 0.16 in Q3 2022, but has since declined to 0.11 in Q4 2023. This fluctuation may indicate changes in the company's capital structure and debt management strategies during this period.

Overall, the debt-to-assets ratio of Cadence Design Systems, Inc. is on the lower side, suggesting a conservative approach to debt utilization. Investors and stakeholders may view this positively as it indicates a lower risk of financial distress due to excessive debt levels.