Cadence Design Systems Inc (CDNS)
Financial leverage ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 5,669,490 | 5,137,070 | 4,386,300 | 3,950,780 | 3,357,220 |
| Total stockholders’ equity | US$ in thousands | 3,404,270 | 2,745,110 | 2,740,680 | 2,493,020 | 2,102,890 |
| Financial leverage ratio | 1.67 | 1.87 | 1.60 | 1.58 | 1.60 |
December 31, 2023 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $5,669,490K ÷ $3,404,270K
= 1.67
The financial leverage ratio of Cadence Design Systems, Inc. has shown fluctuation over the past five years. In 2023, the ratio decreased to 1.67 from 1.87 in 2022, indicating a reduction in the company's reliance on debt to finance its operations. This moderation in leverage suggests improved financial stability and lower risk of default. Compared to the starting point in 2019, the ratio has slightly increased, reflecting some degree of leverage buildup over the years. It is important for investors and creditors to monitor this metric to assess the firm's ability to meet its financial obligations and manage its debt levels effectively.
Peer comparison
Dec 31, 2023