Common-Size Balance Sheet: Assets
Quarterly Data
Cadence Design Systems Inc., common-size consolidated balance sheet: assets (quarterly data)
Based on: 10-K (reporting date: 2025-12-31), 10-Q (reporting date: 2025-09-30), 10-Q (reporting date: 2025-06-30), 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-10-01), 10-Q (reporting date: 2022-07-02), 10-Q (reporting date: 2022-04-02), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-10-02), 10-Q (reporting date: 2021-07-03), 10-Q (reporting date: 2021-04-03).
The composition of assets has shifted notably over the analyzed period, spanning from April 2021 to December 2025. A significant trend involves the increasing proportion of cash and cash equivalents, particularly pronounced in the latter half of the period, peaking at 30.39% and 29.46% in September and December 2024, respectively, before moderating slightly. Conversely, the proportion of long-term assets generally decreased, with a more substantial decline observed from 2023 onwards. Goodwill and acquired intangibles, while representing a substantial portion of assets, exhibited some fluctuation but generally remained relatively stable until a noticeable increase in the proportion of other assets in the latter part of the period.
- Liquidity and Current Assets
- Current assets consistently represented a significant portion of total assets, ranging between 31.87% and 39.47% throughout the period. While there were fluctuations, a slight downward trend in the proportion of current assets is observable, particularly after June 2023. Within current assets, cash and cash equivalents demonstrated the most substantial change, increasing from 18.58% in April 2021 to approximately 29.56% - 30.82% in late 2024 and early 2025. Receivables, net, remained relatively stable, fluctuating between approximately 7.76% and 9.72% of total assets. Inventories also showed a modest increase over the period, rising from 1.92% to around 2.98%-3.20%.
- Long-Term Asset Composition
- Long-term assets accounted for the majority of the asset base for much of the analyzed period, but their relative importance diminished over time. Goodwill consistently represented a substantial portion of long-term assets, generally between 21% and 28%. Acquired intangibles, net, also contributed significantly, fluctuating between approximately 5.88% and 9.19%. Property, plant, and equipment, net, remained relatively stable, generally between 6.97% and 7.63%. Deferred taxes showed a gradual decline in proportion, while other assets experienced a notable increase in the latter part of the period, suggesting a potential shift in the company’s asset allocation strategy.
- Shifts in Asset Allocation
- The observed increase in cash and cash equivalents, coupled with the decrease in long-term assets, suggests a potential shift towards a more liquid asset position. This could be indicative of strategic decisions related to acquisitions, debt repayment, or a more conservative financial approach. The increase in ‘other assets’ warrants further investigation to understand the nature of these assets and their impact on the company’s financial position. The relatively stable proportion of receivables and inventories suggests consistent management of working capital.
Overall, the asset composition demonstrates a dynamic shift, with a growing emphasis on liquid assets and a corresponding decrease in the proportion of long-term assets. These changes suggest evolving strategic priorities and a potential adjustment to the company’s risk profile.
AI Ask an analyst for more