Cadence Design Systems Inc (CDNS)
Solvency ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-equity ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| 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 |
Cadence Design Systems Inc has consistently maintained a strong solvency position, as indicated by its low debt-to-assets, debt-to-capital, and debt-to-equity ratios across the years examined. These ratios remained at 0.00 throughout the period, indicating that the company has no significant debt relative to its assets, capital, or equity.
The financial leverage ratio, which reflects the proportion of debt in the company's capital structure, shows a fluctuating trend over the years. The ratio ranged between 1.48 and 1.87 during the period, with a peak observed in September 30, 2024. While there was some variation in the financial leverage ratio, overall, the company's leverage remained at moderate levels, suggesting a balanced mix of debt and equity in its capital structure.
Overall, the solvency ratios suggest that Cadence Design Systems Inc has a stable financial position with a conservative approach to leverage and debt management. This level of solvency indicates the company's ability to meet its financial obligations comfortably and maintain financial stability over the long term.
Coverage ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Interest coverage | 18.95 | 23.81 | 31.85 | 35.74 | 35.51 | 32.16 | 34.13 | 38.63 | 46.58 | 57.84 | 58.34 | 52.92 | 46.08 | 43.90 | 40.06 | 35.35 | 31.28 | 28.55 | 27.48 | 27.61 |
Cadence Design Systems Inc's interest coverage ratio has shown a generally increasing trend over the period from March 31, 2020, to December 31, 2024. The interest coverage ratio measures the company's ability to cover its interest expenses with its operating income.
Starting at 27.61 on March 31, 2020, the ratio steadily increased to reach 58.34 by June 30, 2022, indicating a strong ability to cover interest payments. The ratio peaked at 58.34, showcasing robust financial health.
However, the interest coverage ratio started to decline after June 30, 2022, falling to 18.95 by December 31, 2024. This downward trend may indicate a potential strain on the company's ability to cover interest expenses with its operating income.
Overall, the interest coverage ratio for Cadence Design Systems Inc has been robust with fluctuations in recent periods. It is important for investors and analysts to monitor the trend closely to assess the company's ability to meet its debt obligations in the future.