Cadence Design Systems Inc (CDNS)

Debt-to-equity 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-equity ratio		0.09	0.24	0.13	0.14	0.16

December 31, 2023 calculation

Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $299,771K ÷ $3,404,270K
= 0.09

The debt-to-equity ratio of Cadence Design Systems, Inc. has fluctuated over the past five years. In 2023, the ratio stands at 0.19, indicating that the company has $0.19 in debt for every $1 of equity. This is a decrease compared to the previous year, where the ratio was 0.27. The significant reduction in the debt-to-equity ratio from 2022 to 2023 suggests that the company has either reduced its debt levels, increased its equity, or a combination of both.

Compared to 2021 and 2020, where the ratios were 0.13 and 0.14, respectively, the current ratio of 0.19 in 2023 is higher, indicating a higher proportion of debt relative to equity. However, the ratio remains lower than in 2019 when it was 0.16. Overall, the trend in the debt-to-equity ratio for Cadence Design Systems, Inc. has shown some variation but has generally been at a manageable level over the years. It would be important for investors and stakeholders to monitor this ratio to assess the company's leverage and financial risk.