Stock Analysis on Net
Stock Analysis on Net

Cadence Design Systems Inc. (NASDAQ:CDNS)

Common-Size Balance Sheet: Liabilities and Stockholders’ Equity 

Cadence Design Systems Inc., common-size consolidated balance sheet: liabilities and stockholders’ equity

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Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Revolving credit facility 0.00 0.00 1.95 0.00 0.00
Current portion of long-term debt 0.00 6.16 0.00 0.00 0.00
Trade accounts payable 0.06 1.61 0.92 0.00 0.00
Payroll and payroll-related accruals 3.74 5.19 5.74 5.79 5.55
Other accrued operating liabilities 3.25 3.37 4.19 3.72 3.31
Accounts payable and accrued liabilities 7.05% 10.17% 10.85% 9.51% 8.86%
Current portion of deferred revenue 8.22 11.73 13.44 12.63 11.31
Current liabilities 15.27% 28.06% 26.23% 22.14% 20.17%
Long-term portion of deferred revenue 1.28 1.74 1.78 2.31 2.71
Long-term debt, excluding current portion 27.59 5.29 12.62 7.92 8.78
Long-term operating lease liabilities 1.21 2.03 2.71 2.44 2.88
Other accrued liabilities 2.57 2.83 3.22 2.70 2.36
Other long-term liabilities 3.78% 4.86% 5.93% 5.14% 5.24%
Long-term liabilities 32.66% 11.89% 20.33% 15.38% 16.73%
Total liabilities 47.92% 39.95% 46.56% 37.52% 36.90%
Preferred stock, $0.01 par value; none issued or outstanding 0.00 0.00 0.00 0.00 0.00
Common stock, $0.01 par value 46.60 55.86 53.84 56.26 56.14
Treasury stock, at cost -59.16 -81.21 -74.44 -62.47 -52.09
Retained earnings 66.77 87.07 75.83 69.45 59.49
Accumulated other comprehensive loss -2.12 -1.67 -1.78 -0.76 -0.44
Stockholders’ equity 52.08% 60.05% 53.44% 62.48% 63.10%
Total liabilities and stockholders’ equity 100.00% 100.00% 100.00% 100.00% 100.00%

Based on: 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), 10-K (reporting date: 2020-12-31).

Liabilities
The total liabilities as a percentage of total liabilities and stockholders’ equity demonstrated variability over the observed periods. There was a notable increase from 36.90% in 2020 to 46.56% in 2022, followed by a decrease to 39.95% in 2023, and then a significant rise to 47.92% in 2024. This suggests fluctuations in the company’s leverage and financing structure.
Current liabilities increased steadily from 20.17% in 2020 to a peak of 28.06% in 2023, before dropping sharply to 15.27% in 2024. This pattern indicates a reduction in short-term obligations relative to total financing in the latest year.
Long-term liabilities exhibited a more complex trend, declining from 16.73% in 2020 to 15.38% in 2021, then sharply increasing to 20.33% in 2022. This was followed by a substantial decrease to 11.89% in 2023 before rising markedly to 32.66% in 2024. The increase in 2024 is largely attributable to the long-term debt component, which rose from 5.29% in 2023 to 27.59% in 2024, indicating a heavier reliance on long-term borrowing in the most recent period.
Within current liabilities, the current portion of long-term debt emerged in 2023 at 6.16% and data for 2024 was missing, while the revolving credit facility appeared in 2023 at 1.95%, indicating new or restructured short-term financing lines during that year.
Trade accounts payable showed some volatility, increasing from 0.92% in 2022 to 1.61% in 2023, before declining sharply to 0.06% in 2024. Payroll and payroll-related accruals steadily declined after peaking at 5.79% in 2021 to 3.74% in 2024, reflecting potential changes in labor cost management or workforce levels.
Other accrued operating liabilities peaked in 2022 at 4.19% but decreased to 3.25% by 2024. The combined accounts payable and accrued liabilities followed a similar pattern, peaking in 2022 at 10.85% and falling to 7.05% by 2024.
Deferred revenue, both current and long-term portions, showed a consistent decline from 2020 to 2024. The current portion dropped from 11.31% in 2020 to 8.22% in 2024, while the long-term portion declined from 2.71% to 1.28%, indicating potential shifts in revenue recognition or customer prepayments.
Long-term operating lease liabilities and other long-term liabilities both decreased over the period, suggesting reduced lease commitments and other obligations as a proportion of total financing.
Stockholders’ Equity
Stockholders’ equity as a percentage of total liabilities and stockholders’ equity decreased over the period, from 63.10% in 2020 to 52.08% in 2024, reflecting a gradual decline in equity financing relative to liabilities.
Common stock remained relatively stable as a proportion, fluctuating around the mid-50% range until 2024, when it fell notably to 46.60%. This may be indicative of share repurchases or other capital structure changes.
Treasury stock exhibited a pronounced increase in absolute terms (negative values becoming more negative) until 2023, reaching -81.21%, which suggests substantial share buybacks or retirements. However, in 2024, the figure moved to -59.16%, indicating a partial reversal or reduction in treasury stock.
Retained earnings grew from 59.49% in 2020 to a peak of 87.07% in 2023, followed by a decline to 66.77% in 2024. This trend shows accumulation of earnings until 2023, with some reduction in 2024, possibly due to dividends, losses, or other adjustments.
The accumulated other comprehensive loss increased in magnitude throughout the period, from -0.44% to -2.12%, which reflects growing unrealized losses or adjustments in other comprehensive income items.
Summary Insights
The data reveal a shift towards increased leverage in 2024, primarily driven by a sharp rise in long-term debt. This contrasts with generally higher equity proportions in earlier years. The reduction in current liabilities and components such as deferred revenue and payroll-related accruals in 2024 suggest changes in operating or financing activities that affect short-term obligations.
Significant share repurchases occurred up to 2023, reflected in growing treasury stock, with some moderation in 2024. The retained earnings indicate robust profitability or income retention until 2023, with a decline afterward.
Overall, the financing structure appears to be transitioning, with a heavier focus on long-term debt in the most recent year, a decline in equity proportion, and a shift in the composition of liabilities and equity components.