Cadence Design Systems Inc (CDNS)

Financial leverage ratio

		Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	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
Total assets	US$ in thousands	8,974,480	9,167,030	7,225,740	5,722,130	5,669,490	5,431,380	5,155,120	5,171,620	5,137,070	4,968,090	4,361,270	4,395,070	4,386,300	4,213,880	4,122,550	3,998,960	3,950,780	4,140,150	3,999,500	3,767,970
Total stockholders’ equity	US$ in thousands	6,043,680	4,563,340	4,260,890	3,567,600	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
Financial leverage ratio		1.48	2.01	1.70	1.60	1.67	1.74	1.77	1.76	1.87	1.83	1.66	1.59	1.60	1.60	1.64	1.57	1.58	1.73	1.77	1.75

December 31, 2024 calculation

Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $8,974,480K ÷ $6,043,680K
= 1.48

The financial leverage ratio of Cadence Design Systems Inc has shown some fluctuations over the past few years. It was relatively stable around 1.60 to 1.70 from March 2020 to June 2024, indicating a moderate level of leverage during this period. However, there was a notable increase in the ratio to 2.01 as of September 30, 2024, suggesting a higher level of financial leverage at that point.

Overall, the financial leverage ratio of Cadence Design Systems Inc has been within a reasonable range, reflecting a balance between debt and equity in its capital structure. It is important for the company to monitor this ratio closely to ensure that its leverage remains at a sustainable level and does not pose excessive risks to its financial stability.