Cadence Design Systems Inc (CDNS)

Debt-to-equity 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-equity ratio		0.09	0.21	0.22	0.22	0.24	0.00	0.00	0.00	0.13	0.00	0.00	0.00	0.14	0.14	0.15	0.16	0.16	0.23	0.24	0.25

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 been gradually decreasing from 0.29 in Q3 2022 to 0.19 in Q4 2023, indicating a decreasing reliance on debt to finance its operations and investments. This trend suggests that the company has been managing its debt levels effectively in recent quarters. A lower debt-to-equity ratio generally signifies lower financial risk and strong financial health, as it indicates that the company has less reliance on debt financing compared to equity financing. It also implies that the company has a better ability to meet its financial obligations and liabilities using its own equity capital. Overall, the decreasing trend in Cadence Design Systems' debt-to-equity ratio reflects positively on its financial stability and management of capital structure over the specified period.