Cadence Design Systems Inc (CDNS)

Financial leverage 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
Total assets	US$ in thousands	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	3,357,220	2,662,200	2,612,320	2,546,310
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
Financial leverage ratio		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	1.60	1.80	1.83	1.86

December 31, 2023 calculation

Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $5,669,490K ÷ $3,404,270K
= 1.67

The financial leverage ratio for Cadence Design Systems, Inc. has shown some fluctuations over the past several quarters. It ranged from a high of 1.87 in Q4 2022 to a low of 1.59 in Q1 2022.

A financial leverage ratio above 1 indicates that the company is using debt to finance its operations, while a ratio below 1 would suggest that the company relies more on equity financing.

The trend in the financial leverage ratio for Cadence Design Systems, Inc. shows a slight increase in leverage from Q1 2022 to Q4 2022, followed by some variability in subsequent quarters. This may indicate changes in the company's capital structure and borrowing levels over time.

It would be important to further analyze the reasons behind these fluctuations in the financial leverage ratio to better understand the company's financing decisions and assess the associated risks.