Cadence Design Systems Inc (CDNS)

Solvency ratios

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
Debt-to-assets ratio 0.05 0.12 0.13 0.13 0.13 0.00 0.00 0.00 0.08 0.00 0.00 0.00 0.09 0.08 0.09 0.09 0.10 0.13 0.13 0.14
Debt-to-capital ratio 0.08 0.17 0.18 0.18 0.19 0.00 0.00 0.00 0.11 0.00 0.00 0.00 0.12 0.13 0.13 0.14 0.14 0.19 0.19 0.20
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
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

Cadence Design Systems, Inc. has exhibited a consistent trend of improving solvency ratios over the last eight quarters. The debt-to-assets ratio has decreased steadily from 0.15 in Q4 2022 to 0.11 in Q4 2023, indicating that the company's assets are predominantly financed by equity rather than debt. Similarly, the debt-to-capital ratio and debt-to-equity ratio have both decreased from Q4 2022 to Q4 2023, showing a stronger capital structure with less reliance on debt financing.

Furthermore, the financial leverage ratio has also shown a declining trend over the same period, indicating that the company has been reducing its reliance on debt to finance its operations. A lower financial leverage ratio suggests a lower level of financial risk and vulnerability to economic downturns.

Overall, based on the solvency ratios, Cadence Design Systems, Inc. appears to be in a solid financial position with a conservative debt structure and adequate financial flexibility to support its operations and growth prospects.


Coverage ratios

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
Interest coverage 36.43 32.16 34.13 38.63 46.58 57.84 58.34 52.92 46.26 44.21 40.38 35.68 31.50 28.46 27.45 27.61 26.44 26.48 24.41 20.79

Cadence Design Systems, Inc.'s interest coverage has shown a generally positive trend over the past eight quarters, indicating the company's ability to comfortably meet its interest obligations. The interest coverage ratio has consistently been above 1, which is a positive sign, with the highest coverage ratio of 192.77 in Q4 2023 and the lowest of 59.89 in Q1 2023. This indicates that the company's operating income is more than sufficient to cover its interest expenses, providing a buffer against potential financial distress. Overall, the increasing trend in the interest coverage ratio reflects the company's strong financial health and ability to manage its debt obligations effectively.


See also:

Cadence Design Systems Inc Solvency Ratios (Quarterly Data)