Cadence Design Systems Inc (CDNS)

Debt-to-capital 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 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
Debt-to-capital ratio		0.08	0.17	0.18	0.18	0.19	0.00	0.00	0.00	0.11	0.00	0.00	0.00	0.12	0.13	0.13	0.14	0.14	0.19	0.19	0.20

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 shown a fluctuating trend over the past eight quarters, ranging from 0.11 to 0.23. A lower debt-to-capital ratio indicates lower financial risk and a stronger capital structure. In Q1 and Q2 of 2022, the company had a relatively low debt-to-capital ratio at 0.11 and 0.12, respectively, suggesting a conservative debt level compared to its capital.

However, the ratio increased steadily in the following quarters, reaching a peak of 0.23 in Q3 2022 before showing a slight decrease in subsequent quarters. The increase in the debt-to-capital ratio may indicate that the company had taken on more debt relative to its capital base during those periods.

The recent ratios of 0.16 in Q4 2023, 0.17 in Q3 2023, and 0.18 in Q2 2023 suggest that the company's debt level, in relation to its capital, has been relatively stable but slightly higher compared to the earlier quarters. Investors and analysts may monitor this ratio to assess Cadence Design Systems' leverage and financial risk management strategies.