Cadence Design Systems Inc (CDNS)
Debt-to-capital ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 4,673,580 | 3,404,270 | 2,745,110 | 2,740,680 | 2,493,020 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
December 31, 2024 calculation
Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $—K ÷ ($—K + $4,673,580K)
= 0.00
The debt-to-capital ratio of Cadence Design Systems Inc has been consistently recorded at 0.00% from December 31, 2020, to December 31, 2024. This indicates that the company has not used debt financing to fund its operations significantly, or that the capital structure is dominated by equity. A low or zero debt-to-capital ratio suggests lower financial risk, as there is no or minimal reliance on debt to support the company's growth and operations. However, it's important to note that a very low debt-to-capital ratio could also imply missed opportunities for tax benefits associated with debt financing. Overall, Cadence Design Systems Inc's debt-to-capital ratio reflects a conservative approach to capital structure management and a solid financial position.
Peer comparison
Dec 31, 2024