Cadence Design Systems Inc. (NASDAQ:CDNS)

The analysis of the financial ratios expressed as percentages of total liabilities and stockholders’ equity reveals several notable trends across the examined periods. The data indicate fluctuations in both liabilities and equity components, suggesting dynamic shifts in the company's capital structure and financial obligations.

Revolving Credit Facility

This metric shows a gradual decline from 9.29% to a low of 0.58% in late 2022, indicating reduced reliance on short-term credit facilities. Data after this period is sparse, but the initial trend suggests deleveraging or refinancing activities.

Current Portion of Long-Term Debt

Values remain unreported for the earlier periods and emerge in 2025 with a decreasing trend from 6.16% down to 3.82%, implying the scheduled repayment of principal obligations coming due within the year is being managed conservatively.

Accounts Payable and Accrued Liabilities

This ratio fluctuates moderately, with peaks around 11% in late 2021 and 2022, and a decline towards mid-2024 before a slight uptick by late 2025. The variation suggests changing payment cycles or operational exigencies affecting short-term liabilities.

Current Portion of Deferred Revenue

Starting around 11.3%, this figure rises to over 14% in mid-2021 and then gradually declines to approximately 8% by late 2025. The initial increase could relate to advances received from customers, with a subsequent reduction reflecting revenue recognition or adjustments in sales patterns.

Current Liabilities

Overall, current liabilities demonstrate a downward trend from nearly 29% to 14.65%, with intermittent peaks near 28%. This indicates an improvement in short-term liquidity and possibly more efficient working capital management over time.

Long-Term Portion of Deferred Revenue

This ratio remains relatively stable, with a subtle decline from 2.53% to about 1.35%, suggesting consistent but slightly decreasing deferred revenue on the long-term side, which may be due to changes in contract terms or revenue recognition policies.

Long-Term Debt, Excluding Current Portion

There is modest volatility here, initially declining from around 9.19% to a low near 5.24% in early 2024, followed by a sharp increase to about 27% by late 2024, remaining elevated thereafter. This sharp rise may signify significant long-term borrowing or refinancing events during that period.

Other Long-Term Liabilities

This category remains fairly steady, fluctuating narrowly between approximately 3.78% and 5.93%, indicating stable obligations under other long-term liabilities.

Long-Term Liabilities

The combined long-term liabilities mirror the fluctuations seen in long-term debt, dropping to a low near 11.89% in early 2024 before rising sharply to almost 32.66% and stabilizing around 31%. This reflects a significant restructuring or increase in long-term financial obligations during this timeframe.

Total Liabilities

Total liabilities show general variability, decreasing from about 43.58% to 36.42% by early 2021, then rising to a peak over 46% in late 2022, followed by another peak near 50% in late 2024, before declining to around 45.84%. This pattern indicates periods of increased borrowing or liabilities interspersed with deleveraging phases.

Common Stock and Capital in Excess of Par Value

This component remains relatively stable, hovering around the mid-50% range with minor fluctuations. A slight dip to approximately 44.37% in late 2024 corresponds with the increase in liabilities, possibly reflecting equity transactions or valuation changes.

Treasury Stock, at Cost

The treasury stock category shows a consistent increasing negative balance, deepening from -47.2% to a maximum negative of about -84.59% in early 2024 before partially recovering. This trend suggests substantial repurchases of stock over the periods, indicating a strategic focus on returning value to shareholders or managing capital structure.

Retained Earnings

Retained earnings grow steadily from roughly 50% to about 90.6% in early 2024, then decline to near 61.65% before recovering somewhat. This growth signals accumulating profits being retained in the business, supporting equity growth until a mid-cycle contraction possibly due to losses, dividend payments, or other equity adjustments.

Accumulated Other Comprehensive Income (Loss)

This item remains a minor component with small negative values fluctuating between -2.46% and near zero, showing minor changes in comprehensive income impacts such as foreign currency translation or pension adjustments.

Stockholders’ Equity

Stockholders’ equity as a percentage of total capital fluctuates between 52% and 63%, peaking around 63% in early 2021 and again in mid-2024. The variations reflect the combined effects of equity issuances, repurchases, retained earnings changes, and other equity movements occurring throughout the periods.

In summary, the company demonstrates an active management of its capital structure with fluctuating long-term debt and liabilities, significant treasury stock repurchases, and generally strengthening retained earnings over the majority of the timeline. The interplay between rising long-term debt in late periods and changes in equity components suggests strategic financing decisions impacting the overall financial leverage. The trends in current liabilities also imply evolving operational cash management and creditor relationships. Overall, the data portray a dynamic financial posture with periods of debt refinancing, equity transactions, and disciplined control over working capital.