Common-Size Balance Sheet: Assets
Cadence Design Systems Inc., common-size consolidated balance sheet: assets
Based on: 10-K (reporting date: 2025-12-31), 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31).
The composition of assets at the company has undergone notable shifts between 2021 and 2025. A significant trend is the increasing proportion of current assets relative to total assets, while the share of long-term assets has decreased. Within these broad categories, several specific items exhibit distinct patterns.
- Liquidity and Current Assets
- Current assets as a percentage of total assets increased from 39.12% in 2021 to 45.99% in 2025. This rise is primarily driven by a substantial increase in cash and cash equivalents, growing from 24.83% to 29.56% over the same period. Receivables, net, experienced some fluctuation, peaking at 9.47% in 2022 before settling at 9.31% in 2025. Short-term investments showed initial decline followed by a rise, but remained a small portion of total assets. The proportion of other prepaid expenses and other assets remained relatively stable, with a slight decrease over the period.
- Long-Term Assets – Goodwill and Intangibles
- Goodwill consistently represented a substantial portion of long-term assets, increasing from 21.16% in 2021 to 27.08% in 2025. Acquired intangibles, net, also increased, moving from 5.32% to 7.07% during the period. These increases suggest continued investment in, or acquisitions contributing to, these intangible asset categories.
- Long-Term Assets – Deferred Taxes and Investments
- Deferred taxes experienced a considerable decline as a percentage of total assets, decreasing from 17.41% in 2021 to 9.04% in 2025. Long-term investments also decreased significantly, falling from 2.91% to 0.66% over the five-year period. This suggests a potential shift in capital allocation or changes in tax strategies.
- Long-Term Assets – ROU Leases and Other
- ROU operating lease assets decreased from 2.97% to 1.73% of total assets, indicating a potential reduction in leased assets. Other long-term assets showed a slight decrease, while other assets also experienced a decline, from 10.01% to 5.73%. These reductions contribute to the overall decrease in the proportion of long-term assets.
- Property, Plant, and Equipment
- The proportion of property, plant, and equipment, net, decreased from 6.97% in 2021 to 5.09% in 2025. This suggests a potential shift away from capital-intensive assets or a faster rate of asset growth in other areas.
In summary, the asset composition demonstrates a move towards more liquid assets and a decrease in the relative importance of long-term assets, particularly deferred taxes and long-term investments. The increases in goodwill and acquired intangibles suggest continued strategic acquisitions or internal development of these assets.
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