Cadence Design Systems Inc (CDNS)

Financial leverage ratio

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Total assets	US$ in thousands	8,974,480	5,669,490	5,137,070	4,386,300	3,950,780
Total stockholders’ equity	US$ in thousands	4,673,580	3,404,270	2,745,110	2,740,680	2,493,020
Financial leverage ratio		1.92	1.67	1.87	1.60	1.58

December 31, 2024 calculation

Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $8,974,480K ÷ $4,673,580K
= 1.92

The financial leverage ratio of Cadence Design Systems Inc has shown a slight increase from 1.58 in December 31, 2020 to 1.60 in December 31, 2021, indicating a slightly higher level of financial leverage during this period. Subsequently, the ratio increased significantly to 1.87 in December 31, 2022, suggesting a considerable rise in the company's reliance on debt to finance its operations.

However, the financial leverage ratio decreased to 1.67 in December 31, 2023, indicating a slight reduction in the company's financial leverage compared to the previous year. Nevertheless, by December 31, 2024, the ratio rose again to 1.92, marking a notable increase in the level of financial leverage at the end of the period under consideration.

Overall, the trend in Cadence Design Systems Inc's financial leverage ratio suggests fluctuations in the company's debt utilization over the years, with a general tendency towards higher levels of financial leverage in recent years. This indicates that the company is increasingly relying on debt to fund its operations and investments, which may have implications for its financial risk and stability.