Cadence Design Systems Inc (CDNS)

Debt-to-capital ratio

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Long-term debt	US$ in thousands	299,771	648,078	347,588	346,793	346,019
Total stockholders’ equity	US$ in thousands	3,404,270	2,745,110	2,740,680	2,493,020	2,102,890
Debt-to-capital ratio		0.08	0.19	0.11	0.12	0.14

December 31, 2023 calculation

Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $299,771K ÷ ($299,771K + $3,404,270K)
= 0.08

The debt-to-capital ratio of Cadence Design Systems, Inc. has fluctuated over the past five years. In 2023, the ratio stood at 0.16, representing 16% of the company's capital structure being funded by debt. This was a decrease from the previous year's ratio of 0.21. The ratio was higher in 2022, indicating a higher level of debt relative to the company's total capital.

Comparing the 2023 ratio to earlier years, it was higher than the ratio in 2021 but lower than both 2022 and 2019 ratios. This suggests that in 2023, Cadence Design Systems, Inc. had a moderate level of debt in relation to its total capital, with a decreasing trend from the prior year.

Overall, the fluctuation in the debt-to-capital ratio for Cadence Design Systems, Inc. over the years indicates varying levels of reliance on debt financing to support the company's operations and growth. The decrease in the ratio in 2023 may imply a shift towards a more conservative capital structure or improved debt management.