Common-Size Balance Sheet: Liabilities and Stockholders’ Equity
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Cadence Design Systems Inc., common-size consolidated balance sheet: liabilities and stockholders’ equity
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 liabilities and stockholders’ equity exhibited notable shifts between 2021 and 2025. Overall, total liabilities initially increased as a percentage of the total, peaking in 2022 and 2024, before decreasing slightly in 2025. Stockholders’ equity followed an inverse pattern, declining initially and then increasing before stabilizing. A significant feature of the balance sheet is the substantial impact of treasury stock, consistently representing a large negative percentage of total liabilities and stockholders’ equity.
- Current Liabilities
- Current liabilities as a percentage of the total increased from 22.14% in 2021 to 28.06% in 2023, then decreased substantially to 16.11% in 2025. This fluctuation was largely driven by changes in the current portion of deferred revenue and long-term debt. Accounts payable and accrued liabilities also contributed to the initial increase, but decreased over the period. Payroll and payroll-related accruals demonstrated a consistent, albeit moderate, decline.
- Long-Term Liabilities
- Long-term liabilities showed a marked increase from 15.38% in 2021 to 20.33% in 2022, followed by a decrease to 11.89% in 2023. A significant surge occurred in 2024, reaching 32.66%, primarily due to a substantial increase in long-term debt excluding the current portion. This increase was partially offset by a decrease in long-term operating lease liabilities. The percentage then decreased slightly to 29.98% in 2025.
- Debt Composition
- The revolving credit facility and current portion of long-term debt were relatively small percentages of the total throughout the period. However, long-term debt, excluding the current portion, became a more prominent component, particularly in 2024 and 2025, indicating a shift towards longer-term financing. The proportion of long-term operating lease liabilities remained relatively stable, decreasing slightly over the period.
- Stockholders’ Equity
- Stockholders’ equity decreased from 62.48% in 2021 to a low of 52.08% in 2024, before recovering to 53.92% in 2025. This movement was heavily influenced by the substantial and consistently negative impact of treasury stock. Retained earnings generally increased over the period, contributing to the stabilization of stockholders’ equity in the later years. Common stock remained relatively stable as a percentage of the total, while accumulated other comprehensive loss remained a small negative percentage.
- Trade Accounts Payable & Accrued Liabilities
- Trade accounts payable exhibited volatility, increasing from 0.92% in 2022 to 1.61% in 2023, then decreasing dramatically to 0.06% in 2024, and rising again to 0.92% in 2025. Accounts payable and accrued liabilities as a whole followed a similar pattern, peaking in 2022 and 2023, then declining in 2024 before a partial recovery in 2025.
In summary, the balance sheet experienced significant fluctuations in the composition of both liabilities and equity. The increasing reliance on long-term debt in 2024, coupled with the substantial impact of treasury stock, are key observations. The changes in current liabilities suggest active management of short-term obligations and deferred revenue recognition.