Analysis of Solvency Ratios
Solvency ratios also known as long-term debt ratios measure a company ability to meet long-term obligations.
Solvency Ratios (Summary)
Cadence Design Systems Inc., solvency ratios
Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-28), 10-K (reporting date: 2018-12-29).
| Solvency ratio | Description | The company |
|---|---|---|
| Debt to equity ratio | A solvency ratio calculated as total debt divided by total shareholders’ equity. | Cadence Design Systems Inc. debt to equity ratio improved from 2020 to 2021 but then deteriorated significantly from 2021 to 2022. |
| Debt to equity ratio (including operating lease liability) | A solvency ratio calculated as total debt (including operating lease liability) divided by total shareholders’ equity. | Cadence Design Systems Inc. debt to equity ratio (including operating lease liability) improved from 2020 to 2021 but then deteriorated significantly from 2021 to 2022. |
| Debt to capital ratio | A solvency ratio calculated as total debt divided by total debt plus shareholders’ equity. | Cadence Design Systems Inc. debt to capital ratio improved from 2020 to 2021 but then deteriorated significantly from 2021 to 2022. |
| Debt to capital ratio (including operating lease liability) | A solvency ratio calculated as total debt (including operating lease liability) divided by total debt (including operating lease liability) plus shareholders’ equity. | Cadence Design Systems Inc. debt to capital ratio (including operating lease liability) improved from 2020 to 2021 but then deteriorated significantly from 2021 to 2022. |
| Debt to assets ratio | A solvency ratio calculated as total debt divided by total assets. | Cadence Design Systems Inc. debt to assets ratio improved from 2020 to 2021 but then deteriorated significantly from 2021 to 2022. |
| Debt to assets ratio (including operating lease liability) | A solvency ratio calculated as total debt (including operating lease liability) divided by total assets. | Cadence Design Systems Inc. debt to assets ratio (including operating lease liability) improved from 2020 to 2021 but then deteriorated significantly from 2021 to 2022. |
| Financial leverage ratio | A solvency ratio calculated as total assets divided by total shareholders’ equity. | Cadence Design Systems Inc. financial leverage ratio increased from 2020 to 2021 and from 2021 to 2022. |
| Solvency ratio | Description | The company |
|---|---|---|
| Interest coverage ratio | A solvency ratio calculated as EBIT divided by interest payments. | Cadence Design Systems Inc. interest coverage ratio improved from 2020 to 2021 and from 2021 to 2022. |
| Fixed charge coverage ratio | A solvency ratio calculated as earnings before fixed charges and tax divided by fixed charges. | Cadence Design Systems Inc. fixed charge coverage ratio improved from 2020 to 2021 and from 2021 to 2022. |
Debt to Equity
Cadence Design Systems Inc., debt to equity calculation, comparison to benchmarks
| Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 28, 2019 | Dec 29, 2018 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||
| Revolving credit facility | 100,000) | —) | —) | —) | 100,000) | |
| Long-term debt | 648,078) | 347,588) | 346,793) | 346,019) | 345,291) | |
| Total debt | 748,078) | 347,588) | 346,793) | 346,019) | 445,291) | |
| Stockholders’ equity | 2,745,113) | 2,740,675) | 2,493,018) | 2,102,894) | 1,288,401) | |
| Solvency Ratio | ||||||
| Debt to equity1 | 0.27 | 0.13 | 0.14 | 0.16 | 0.35 | |
| Benchmarks | ||||||
| Debt to Equity, Competitors2 | ||||||
| Accenture PLC | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | |
| Adobe Inc. | 0.29 | 0.28 | 0.31 | 0.39 | 0.44 | |
| International Business Machines Corp. | 2.32 | 2.74 | 2.99 | 3.02 | — | |
| Intuit Inc. | 0.42 | 0.21 | 0.66 | 0.12 | 0.19 | |
| Microsoft Corp. | 0.39 | 0.50 | 0.62 | 0.77 | 0.97 | |
| Oracle Corp. | — | 16.08 | 5.93 | 2.58 | 1.33 | |
| Palo Alto Networks Inc. | 17.51 | 5.08 | 2.80 | 0.90 | 1.99 | |
| Salesforce Inc. | 0.19 | 0.07 | 0.09 | 0.22 | — | |
| ServiceNow Inc. | 0.30 | 0.43 | 0.58 | 0.33 | — | |
| Synopsys Inc. | 0.00 | 0.02 | 0.03 | 0.03 | 0.13 | |
| Debt to Equity, Sector | ||||||
| Software & Services | 0.72 | 0.84 | 0.97 | 1.06 | — | |
| Debt to Equity, Industry | ||||||
| Information Technology | 0.67 | 0.77 | 0.88 | 0.88 | — | |
Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-28), 10-K (reporting date: 2018-12-29).
1 2022 Calculation
Debt to equity = Total debt ÷ Stockholders’ equity
= 748,078 ÷ 2,745,113 = 0.27
2 Click competitor name to see calculations.
| Solvency ratio | Description | The company |
|---|---|---|
| Debt to equity ratio | A solvency ratio calculated as total debt divided by total shareholders’ equity. | Cadence Design Systems Inc. debt to equity ratio improved from 2020 to 2021 but then deteriorated significantly from 2021 to 2022. |
Debt to Equity (including Operating Lease Liability)
Cadence Design Systems Inc., debt to equity (including operating lease liability) calculation, comparison to benchmarks
| Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 28, 2019 | Dec 29, 2018 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||
| Revolving credit facility | 100,000) | —) | —) | —) | 100,000) | |
| Long-term debt | 648,078) | 347,588) | 346,793) | 346,019) | 345,291) | |
| Total debt | 748,078) | 347,588) | 346,793) | 346,019) | 445,291) | |
| Current operating lease liabilities (recorded in Accounts payable and accrued liabilities) | 36,737) | 25,271) | 33,920) | 25,558) | —) | |
| Long-term operating lease liabilities | 139,337) | 107,121) | 113,916) | 84,782) | —) | |
| Total debt (including operating lease liability) | 924,152) | 479,980) | 494,629) | 456,359) | 445,291) | |
| Stockholders’ equity | 2,745,113) | 2,740,675) | 2,493,018) | 2,102,894) | 1,288,401) | |
| Solvency Ratio | ||||||
| Debt to equity (including operating lease liability)1 | 0.34 | 0.18 | 0.20 | 0.22 | 0.35 | |
| Benchmarks | ||||||
| Debt to Equity (including Operating Lease Liability), Competitors2 | ||||||
| Accenture PLC | 0.15 | 0.18 | 0.21 | 0.00 | 0.00 | |
| Adobe Inc. | 0.33 | 0.32 | 0.35 | 0.39 | 0.44 | |
| International Business Machines Corp. | 2.46 | 2.92 | 3.23 | 3.27 | — | |
| Intuit Inc. | 0.46 | 0.25 | 0.71 | 0.12 | 0.19 | |
| Microsoft Corp. | 0.47 | 0.58 | 0.69 | 0.84 | 1.06 | |
| Oracle Corp. | — | 16.61 | 6.10 | 2.58 | 1.33 | |
| Palo Alto Networks Inc. | 19.12 | 5.68 | 3.16 | 0.90 | 1.99 | |
| Salesforce Inc. | 0.25 | 0.15 | 0.18 | 0.22 | — | |
| ServiceNow Inc. | 0.44 | 0.60 | 0.75 | 0.53 | — | |
| Synopsys Inc. | 0.12 | 0.13 | 0.14 | 0.03 | 0.13 | |
| Debt to Equity (including Operating Lease Liability), Sector | ||||||
| Software & Services | 0.82 | 0.95 | 1.08 | 1.12 | — | |
| Debt to Equity (including Operating Lease Liability), Industry | ||||||
| Information Technology | 0.73 | 0.84 | 0.95 | 0.90 | — | |
Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-28), 10-K (reporting date: 2018-12-29).
1 2022 Calculation
Debt to equity (including operating lease liability) = Total debt (including operating lease liability) ÷ Stockholders’ equity
= 924,152 ÷ 2,745,113 = 0.34
2 Click competitor name to see calculations.
| Solvency ratio | Description | The company |
|---|---|---|
| Debt to equity ratio (including operating lease liability) | A solvency ratio calculated as total debt (including operating lease liability) divided by total shareholders’ equity. | Cadence Design Systems Inc. debt to equity ratio (including operating lease liability) improved from 2020 to 2021 but then deteriorated significantly from 2021 to 2022. |
Debt to Capital
Cadence Design Systems Inc., debt to capital calculation, comparison to benchmarks
| Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 28, 2019 | Dec 29, 2018 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||
| Revolving credit facility | 100,000) | —) | —) | —) | 100,000) | |
| Long-term debt | 648,078) | 347,588) | 346,793) | 346,019) | 345,291) | |
| Total debt | 748,078) | 347,588) | 346,793) | 346,019) | 445,291) | |
| Stockholders’ equity | 2,745,113) | 2,740,675) | 2,493,018) | 2,102,894) | 1,288,401) | |
| Total capital | 3,493,191) | 3,088,263) | 2,839,811) | 2,448,913) | 1,733,692) | |
| Solvency Ratio | ||||||
| Debt to capital1 | 0.21 | 0.11 | 0.12 | 0.14 | 0.26 | |
| Benchmarks | ||||||
| Debt to Capital, Competitors2 | ||||||
| Accenture PLC | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | |
| Adobe Inc. | 0.23 | 0.22 | 0.24 | 0.28 | 0.31 | |
| International Business Machines Corp. | 0.70 | 0.73 | 0.75 | 0.75 | — | |
| Intuit Inc. | 0.30 | 0.17 | 0.40 | 0.10 | 0.16 | |
| Microsoft Corp. | 0.28 | 0.33 | 0.38 | 0.43 | 0.49 | |
| Oracle Corp. | 1.09 | 0.94 | 0.86 | 0.72 | 0.57 | |
| Palo Alto Networks Inc. | 0.95 | 0.84 | 0.74 | 0.47 | 0.67 | |
| Salesforce Inc. | 0.16 | 0.06 | 0.08 | 0.18 | — | |
| ServiceNow Inc. | 0.23 | 0.30 | 0.37 | 0.25 | — | |
| Synopsys Inc. | 0.00 | 0.02 | 0.03 | 0.03 | 0.12 | |
| Debt to Capital, Sector | ||||||
| Software & Services | 0.42 | 0.46 | 0.49 | 0.51 | — | |
| Debt to Capital, Industry | ||||||
| Information Technology | 0.40 | 0.43 | 0.47 | 0.47 | — | |
Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-28), 10-K (reporting date: 2018-12-29).
1 2022 Calculation
Debt to capital = Total debt ÷ Total capital
= 748,078 ÷ 3,493,191 = 0.21
2 Click competitor name to see calculations.
| Solvency ratio | Description | The company |
|---|---|---|
| Debt to capital ratio | A solvency ratio calculated as total debt divided by total debt plus shareholders’ equity. | Cadence Design Systems Inc. debt to capital ratio improved from 2020 to 2021 but then deteriorated significantly from 2021 to 2022. |
Debt to Capital (including Operating Lease Liability)
Cadence Design Systems Inc., debt to capital (including operating lease liability) calculation, comparison to benchmarks
| Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 28, 2019 | Dec 29, 2018 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||
| Revolving credit facility | 100,000) | —) | —) | —) | 100,000) | |
| Long-term debt | 648,078) | 347,588) | 346,793) | 346,019) | 345,291) | |
| Total debt | 748,078) | 347,588) | 346,793) | 346,019) | 445,291) | |
| Current operating lease liabilities (recorded in Accounts payable and accrued liabilities) | 36,737) | 25,271) | 33,920) | 25,558) | —) | |
| Long-term operating lease liabilities | 139,337) | 107,121) | 113,916) | 84,782) | —) | |
| Total debt (including operating lease liability) | 924,152) | 479,980) | 494,629) | 456,359) | 445,291) | |
| Stockholders’ equity | 2,745,113) | 2,740,675) | 2,493,018) | 2,102,894) | 1,288,401) | |
| Total capital (including operating lease liability) | 3,669,265) | 3,220,655) | 2,987,647) | 2,559,253) | 1,733,692) | |
| Solvency Ratio | ||||||
| Debt to capital (including operating lease liability)1 | 0.25 | 0.15 | 0.17 | 0.18 | 0.26 | |
| Benchmarks | ||||||
| Debt to Capital (including Operating Lease Liability), Competitors2 | ||||||
| Accenture PLC | 0.13 | 0.15 | 0.17 | 0.00 | 0.00 | |
| Adobe Inc. | 0.25 | 0.24 | 0.26 | 0.28 | 0.31 | |
| International Business Machines Corp. | 0.71 | 0.74 | 0.76 | 0.77 | — | |
| Intuit Inc. | 0.31 | 0.20 | 0.42 | 0.10 | 0.16 | |
| Microsoft Corp. | 0.32 | 0.37 | 0.41 | 0.46 | 0.51 | |
| Oracle Corp. | 1.08 | 0.94 | 0.86 | 0.72 | 0.57 | |
| Palo Alto Networks Inc. | 0.95 | 0.85 | 0.76 | 0.47 | 0.67 | |
| Salesforce Inc. | 0.20 | 0.13 | 0.16 | 0.18 | — | |
| ServiceNow Inc. | 0.31 | 0.37 | 0.43 | 0.35 | — | |
| Synopsys Inc. | 0.11 | 0.11 | 0.12 | 0.03 | 0.12 | |
| Debt to Capital (including Operating Lease Liability), Sector | ||||||
| Software & Services | 0.45 | 0.49 | 0.52 | 0.53 | — | |
| Debt to Capital (including Operating Lease Liability), Industry | ||||||
| Information Technology | 0.42 | 0.46 | 0.49 | 0.47 | — | |
Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-28), 10-K (reporting date: 2018-12-29).
1 2022 Calculation
Debt to capital (including operating lease liability) = Total debt (including operating lease liability) ÷ Total capital (including operating lease liability)
= 924,152 ÷ 3,669,265 = 0.25
2 Click competitor name to see calculations.
| Solvency ratio | Description | The company |
|---|---|---|
| Debt to capital ratio (including operating lease liability) | A solvency ratio calculated as total debt (including operating lease liability) divided by total debt (including operating lease liability) plus shareholders’ equity. | Cadence Design Systems Inc. debt to capital ratio (including operating lease liability) improved from 2020 to 2021 but then deteriorated significantly from 2021 to 2022. |
Debt to Assets
Cadence Design Systems Inc., debt to assets calculation, comparison to benchmarks
| Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 28, 2019 | Dec 29, 2018 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||
| Revolving credit facility | 100,000) | —) | —) | —) | 100,000) | |
| Long-term debt | 648,078) | 347,588) | 346,793) | 346,019) | 345,291) | |
| Total debt | 748,078) | 347,588) | 346,793) | 346,019) | 445,291) | |
| Total assets | 5,137,071) | 4,386,299) | 3,950,785) | 3,357,225) | 2,468,654) | |
| Solvency Ratio | ||||||
| Debt to assets1 | 0.15 | 0.08 | 0.09 | 0.10 | 0.18 | |
| Benchmarks | ||||||
| Debt to Assets, Competitors2 | ||||||
| Accenture PLC | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | |
| Adobe Inc. | 0.15 | 0.15 | 0.17 | 0.20 | 0.22 | |
| International Business Machines Corp. | 0.40 | 0.39 | 0.39 | 0.41 | — | |
| Intuit Inc. | 0.25 | 0.13 | 0.31 | 0.07 | 0.08 | |
| Microsoft Corp. | 0.18 | 0.21 | 0.24 | 0.27 | 0.31 | |
| Oracle Corp. | 0.69 | 0.64 | 0.62 | 0.52 | 0.44 | |
| Palo Alto Networks Inc. | 0.30 | 0.31 | 0.34 | 0.22 | 0.33 | |
| Salesforce Inc. | 0.12 | 0.04 | 0.06 | 0.11 | — | |
| ServiceNow Inc. | 0.11 | 0.15 | 0.19 | 0.12 | — | |
| Synopsys Inc. | 0.00 | 0.01 | 0.02 | 0.02 | 0.08 | |
| Debt to Assets, Sector | ||||||
| Software & Services | 0.26 | 0.28 | 0.31 | 0.32 | — | |
| Debt to Assets, Industry | ||||||
| Information Technology | 0.26 | 0.28 | 0.30 | 0.31 | — | |
Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-28), 10-K (reporting date: 2018-12-29).
1 2022 Calculation
Debt to assets = Total debt ÷ Total assets
= 748,078 ÷ 5,137,071 = 0.15
2 Click competitor name to see calculations.
| Solvency ratio | Description | The company |
|---|---|---|
| Debt to assets ratio | A solvency ratio calculated as total debt divided by total assets. | Cadence Design Systems Inc. debt to assets ratio improved from 2020 to 2021 but then deteriorated significantly from 2021 to 2022. |
Debt to Assets (including Operating Lease Liability)
Cadence Design Systems Inc., debt to assets (including operating lease liability) calculation, comparison to benchmarks
| Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 28, 2019 | Dec 29, 2018 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||
| Revolving credit facility | 100,000) | —) | —) | —) | 100,000) | |
| Long-term debt | 648,078) | 347,588) | 346,793) | 346,019) | 345,291) | |
| Total debt | 748,078) | 347,588) | 346,793) | 346,019) | 445,291) | |
| Current operating lease liabilities (recorded in Accounts payable and accrued liabilities) | 36,737) | 25,271) | 33,920) | 25,558) | —) | |
| Long-term operating lease liabilities | 139,337) | 107,121) | 113,916) | 84,782) | —) | |
| Total debt (including operating lease liability) | 924,152) | 479,980) | 494,629) | 456,359) | 445,291) | |
| Total assets | 5,137,071) | 4,386,299) | 3,950,785) | 3,357,225) | 2,468,654) | |
| Solvency Ratio | ||||||
| Debt to assets (including operating lease liability)1 | 0.18 | 0.11 | 0.13 | 0.14 | 0.18 | |
| Benchmarks | ||||||
| Debt to Assets (including Operating Lease Liability), Competitors2 | ||||||
| Accenture PLC | 0.07 | 0.08 | 0.09 | 0.00 | 0.00 | |
| Adobe Inc. | 0.17 | 0.17 | 0.19 | 0.20 | 0.22 | |
| International Business Machines Corp. | 0.42 | 0.42 | 0.43 | 0.45 | — | |
| Intuit Inc. | 0.27 | 0.16 | 0.33 | 0.07 | 0.08 | |
| Microsoft Corp. | 0.21 | 0.25 | 0.27 | 0.30 | 0.34 | |
| Oracle Corp. | 0.73 | 0.66 | 0.64 | 0.52 | 0.44 | |
| Palo Alto Networks Inc. | 0.33 | 0.35 | 0.38 | 0.22 | 0.33 | |
| Salesforce Inc. | 0.15 | 0.10 | 0.11 | 0.11 | — | |
| ServiceNow Inc. | 0.17 | 0.21 | 0.24 | 0.19 | — | |
| Synopsys Inc. | 0.07 | 0.08 | 0.08 | 0.02 | 0.08 | |
| Debt to Assets (including Operating Lease Liability), Sector | ||||||
| Software & Services | 0.30 | 0.32 | 0.34 | 0.34 | — | |
| Debt to Assets (including Operating Lease Liability), Industry | ||||||
| Information Technology | 0.29 | 0.31 | 0.33 | 0.32 | — | |
Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-28), 10-K (reporting date: 2018-12-29).
1 2022 Calculation
Debt to assets (including operating lease liability) = Total debt (including operating lease liability) ÷ Total assets
= 924,152 ÷ 5,137,071 = 0.18
2 Click competitor name to see calculations.
| Solvency ratio | Description | The company |
|---|---|---|
| Debt to assets ratio (including operating lease liability) | A solvency ratio calculated as total debt (including operating lease liability) divided by total assets. | Cadence Design Systems Inc. debt to assets ratio (including operating lease liability) improved from 2020 to 2021 but then deteriorated significantly from 2021 to 2022. |
Financial Leverage
Cadence Design Systems Inc., financial leverage calculation, comparison to benchmarks
| Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 28, 2019 | Dec 29, 2018 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||
| Total assets | 5,137,071) | 4,386,299) | 3,950,785) | 3,357,225) | 2,468,654) | |
| Stockholders’ equity | 2,745,113) | 2,740,675) | 2,493,018) | 2,102,894) | 1,288,401) | |
| Solvency Ratio | ||||||
| Financial leverage1 | 1.87 | 1.60 | 1.58 | 1.60 | 1.92 | |
| Benchmarks | ||||||
| Financial Leverage, Competitors2 | ||||||
| Accenture PLC | 2.14 | 2.21 | 2.18 | 2.07 | 2.36 | |
| Adobe Inc. | 1.93 | 1.84 | 1.83 | 1.97 | 2.00 | |
| International Business Machines Corp. | 5.80 | 6.98 | 7.57 | 7.30 | — | |
| Intuit Inc. | 1.69 | 1.57 | 2.14 | 1.68 | 2.20 | |
| Microsoft Corp. | 2.19 | 2.35 | 2.55 | 2.80 | 3.13 | |
| Oracle Corp. | — | 25.03 | 9.56 | 4.99 | 3.00 | |
| Palo Alto Networks Inc. | 58.35 | 16.14 | 8.23 | 4.16 | 6.03 | |
| Salesforce Inc. | 1.64 | 1.60 | 1.63 | 1.97 | — | |
| ServiceNow Inc. | 2.64 | 2.92 | 3.07 | 2.83 | — | |
| Synopsys Inc. | 1.71 | 1.65 | 1.64 | 1.57 | 1.77 | |
| Financial Leverage, Sector | ||||||
| Software & Services | 2.74 | 2.98 | 3.17 | 3.32 | — | |
| Financial Leverage, Industry | ||||||
| Information Technology | 2.56 | 2.72 | 2.90 | 2.87 | — | |
Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-28), 10-K (reporting date: 2018-12-29).
1 2022 Calculation
Financial leverage = Total assets ÷ Stockholders’ equity
= 5,137,071 ÷ 2,745,113 = 1.87
2 Click competitor name to see calculations.
| Solvency ratio | Description | The company |
|---|---|---|
| Financial leverage ratio | A solvency ratio calculated as total assets divided by total shareholders’ equity. | Cadence Design Systems Inc. financial leverage ratio increased from 2020 to 2021 and from 2021 to 2022. |
Interest Coverage
Cadence Design Systems Inc., interest coverage calculation, comparison to benchmarks
| Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 28, 2019 | Dec 29, 2018 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||
| Net income | 848,952) | 695,955) | 590,644) | 988,979) | 345,777) | |
| Add: Income tax expense | 196,411) | 72,480) | 42,104) | (510,011) | 30,613) | |
| Add: Interest expense | 22,934) | 16,980) | 20,749) | 18,829) | 23,139) | |
| Earnings before interest and tax (EBIT) | 1,068,297) | 785,415) | 653,497) | 497,797) | 399,529) | |
| Solvency Ratio | ||||||
| Interest coverage1 | 46.58 | 46.26 | 31.50 | 26.44 | 17.27 | |
| Benchmarks | ||||||
| Interest Coverage, Competitors2 | ||||||
| Accenture PLC | 195.34 | 131.46 | 205.84 | 273.26 | 298.26 | |
| Adobe Inc. | 54.64 | 51.49 | 37.00 | 21.38 | 32.31 | |
| International Business Machines Corp. | 1.97 | 5.20 | 4.62 | 8.58 | — | |
| Intuit Inc. | 32.38 | 89.14 | 158.00 | 126.40 | 76.15 | |
| Microsoft Corp. | 41.58 | 31.31 | 21.47 | 17.27 | 14.35 | |
| Oracle Corp. | 3.84 | 6.28 | 7.13 | 6.97 | 7.43 | |
| Palo Alto Networks Inc. | -6.56 | -1.85 | -1.61 | 0.11 | -3.40 | |
| Salesforce Inc. | 8.09 | 24.28 | 7.42 | 8.80 | — | |
| ServiceNow Inc. | 15.78 | 9.89 | 5.56 | 3.02 | — | |
| Synopsys Inc. | 657.96 | 240.38 | 125.16 | 47.79 | 24.29 | |
| Interest Coverage, Sector | ||||||
| Software & Services | 18.31 | 17.65 | 14.44 | 13.06 | — | |
| Interest Coverage, Industry | ||||||
| Information Technology | 24.76 | 22.93 | 16.69 | 15.79 | — | |
Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-28), 10-K (reporting date: 2018-12-29).
1 2022 Calculation
Interest coverage = EBIT ÷ Interest expense
= 1,068,297 ÷ 22,934 = 46.58
2 Click competitor name to see calculations.
| Solvency ratio | Description | The company |
|---|---|---|
| Interest coverage ratio | A solvency ratio calculated as EBIT divided by interest payments. | Cadence Design Systems Inc. interest coverage ratio improved from 2020 to 2021 and from 2021 to 2022. |
Fixed Charge Coverage
Cadence Design Systems Inc., fixed charge coverage calculation, comparison to benchmarks
| Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 28, 2019 | Dec 29, 2018 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||
| Net income | 848,952) | 695,955) | 590,644) | 988,979) | 345,777) | |
| Add: Income tax expense | 196,411) | 72,480) | 42,104) | (510,011) | 30,613) | |
| Add: Interest expense | 22,934) | 16,980) | 20,749) | 18,829) | 23,139) | |
| Earnings before interest and tax (EBIT) | 1,068,297) | 785,415) | 653,497) | 497,797) | 399,529) | |
| Add: Operating lease expense | 49,165) | 43,210) | 39,731) | 34,709) | 33,717) | |
| Earnings before fixed charges and tax | 1,117,462) | 828,625) | 693,228) | 532,506) | 433,246) | |
| Interest expense | 22,934) | 16,980) | 20,749) | 18,829) | 23,139) | |
| Operating lease expense | 49,165) | 43,210) | 39,731) | 34,709) | 33,717) | |
| Fixed charges | 72,099) | 60,190) | 60,480) | 53,538) | 56,856) | |
| Solvency Ratio | ||||||
| Fixed charge coverage1 | 15.50 | 13.77 | 11.46 | 9.95 | 7.62 | |
| Benchmarks | ||||||
| Fixed Charge Coverage, Competitors2 | ||||||
| Accenture PLC | 12.25 | 10.41 | 9.66 | 10.07 | 9.63 | |
| Adobe Inc. | 26.79 | 25.59 | 18.77 | 10.78 | 13.34 | |
| International Business Machines Corp. | 1.52 | 3.13 | 2.62 | 4.41 | — | |
| Intuit Inc. | 14.67 | 25.58 | 27.48 | 34.00 | 26.91 | |
| Microsoft Corp. | 19.50 | 16.90 | 12.44 | 10.94 | 9.45 | |
| Oracle Corp. | 3.22 | 5.17 | 5.68 | 5.50 | 6.38 | |
| Palo Alto Networks Inc. | -1.18 | -1.09 | -0.52 | 0.41 | -1.01 | |
| Salesforce Inc. | 2.18 | 2.94 | 1.69 | 3.00 | — | |
| ServiceNow Inc. | 3.87 | 2.95 | 2.29 | 1.69 | — | |
| Synopsys Inc. | 12.91 | 9.29 | 7.46 | 6.30 | 4.98 | |
| Fixed Charge Coverage, Sector | ||||||
| Software & Services | 9.60 | 9.43 | 7.69 | 7.58 | — | |
| Fixed Charge Coverage, Industry | ||||||
| Information Technology | 14.28 | 13.50 | 10.20 | 10.46 | — | |
Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-28), 10-K (reporting date: 2018-12-29).
1 2022 Calculation
Fixed charge coverage = Earnings before fixed charges and tax ÷ Fixed charges
= 1,117,462 ÷ 72,099 = 15.50
2 Click competitor name to see calculations.
| Solvency ratio | Description | The company |
|---|---|---|
| Fixed charge coverage ratio | A solvency ratio calculated as earnings before fixed charges and tax divided by fixed charges. | Cadence Design Systems Inc. fixed charge coverage ratio improved from 2020 to 2021 and from 2021 to 2022. |