Common-Size Balance Sheet: Assets
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Cadence Design Systems Inc. pages available for free this week:
- Common-Size Income Statement
- Analysis of Liquidity Ratios
- DuPont Analysis: Disaggregation of ROE, ROA, and Net Profit Margin
- Enterprise Value (EV)
- Enterprise Value to EBITDA (EV/EBITDA)
- Selected Financial Data since 2005
- Net Profit Margin since 2005
- Operating Profit Margin since 2005
- Return on Assets (ROA) since 2005
- Debt to Equity since 2005
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Based on: 10-Q (reporting date: 2026-06-30), 10-Q (reporting date: 2026-03-31), 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 organizational asset structure exhibits a significant transition over the analyzed period, moving from a balanced distribution of current and long-term assets toward a composition heavily dominated by intangible assets. A notable shift in liquidity occurs in the latter stages of the timeline, coinciding with a substantial increase in the proportion of goodwill and acquired intangibles, suggesting a strategic pivot toward inorganic growth through acquisitions.
- Liquidity and Current Asset Dynamics
- Current assets as a percentage of total assets fluctuated between 30% and 45% for much of the period. A peak in liquidity is observed between September 2024 and December 2025, where current assets maintained a level of approximately 44-46%, driven primarily by cash and cash equivalents which reached nearly 31%. However, a sharp contraction occurs in early 2026, with current assets dropping to approximately 26% and cash levels falling to around 11-12%, indicating a significant deployment of liquid resources.
- Intangible Asset Expansion
- A consistent upward trend in non-physical assets is evident. Goodwill, which initially represented 22.82% of total assets, rose to approximately 27% by late 2022 and experienced a substantial surge to over 40% by early 2026. Similarly, acquired intangibles, net, increased from 6.62% in early 2021 to 15.52% by June 2026. This pattern indicates a fundamental change in the asset base, where the majority of the company's value is increasingly tied to acquired intellectual property and business premiums.
- Long-Term Asset Composition
- Long-term assets generally trended upward, ending the period at 73.33%, a significant increase from the 66.25% recorded in April 2021. This growth is primarily offset by a steady decline in deferred taxes, which fell from 18.24% to 6.89%. Additionally, property, plant, and equipment, net, showed a gradual decline from 7.63% to 4.64%, suggesting a decrease in the relative importance of physical infrastructure compared to intangible assets.
- Working Capital Stability
- Receivables and inventories remained relatively stable as a percentage of total assets throughout the analyzed timeframe. Receivables generally oscillated between 6% and 9%, while inventories consistently represented a small fraction of the balance sheet, typically between 2% and 3%. These metrics suggest a consistent approach to credit management and inventory control despite the larger shifts in the overall asset structure.