Cadence Design Systems Inc. (NASDAQ:CDNS)

The annual financial data reveals notable trends in the current assets of the company over the five-year period ending December 31, 2024. There is a consistent upward trajectory in both current assets and adjusted current assets from 2020 through 2024.

Current Assets

The value of current assets increases steadily from US$1,478,587 thousand in 2020 to US$1,715,769 thousand in 2021. A marginal decline is observed in 2022 with the value at US$1,706,767 thousand. Following this slight decrease, the current assets rebound to US$1,976,217 thousand in 2023 and then nearly double to US$4,016,079 thousand in 2024. This substantial increase in the last year indicates a significant accumulation or reclassification of current asset items.

Adjusted Current Assets

Adjusted current assets follow a similar pattern, starting at US$1,481,454 thousand in 2020, then rising to US$1,719,461 thousand in 2021. There is a mild dip in 2022 to US$1,709,057 thousand, followed by growth to US$1,980,770 thousand in 2023. The most pronounced increase occurs in 2024, reaching US$4,021,887 thousand, closely mirroring the trend of current assets. The adjustment appears to have a marginal positive effect, keeping adjusted values slightly above the unadjusted figures throughout the period.

Overall, the data indicates a strong growth in liquidity or short-term resources primarily driven by the significant increase noted in the latest year. The dip in 2022 suggests a temporary normalization or disposition of some current assets before the considerable expansion seen subsequently. The close alignment of adjusted current assets with unadjusted values implies that adjustments do not drastically alter the financial position but slightly enhance the reported current resources.

The annual financial data reveals a consistent upward trend in both total assets and adjusted total assets over the observed five-year period.

Total assets

There is a steady increase each year, starting from approximately 3.95 billion US dollars at the end of 2020 and rising to nearly 8.97 billion US dollars by the end of 2024. The growth appears to accelerate significantly in the final year, with an increase of around 3.3 billion US dollars between 2023 and 2024, compared to more moderate annual increments in the preceding years.

Adjusted total assets

This metric also follows a consistent upward trajectory, rising from approximately 3.22 billion US dollars in 2020 to nearly 8.0 billion US dollars in 2024. The pattern of growth mirrors that of total assets, including the marked acceleration observed between 2023 and 2024.

Overall, the data indicates substantial asset growth for the company over the five-year period, with an especially pronounced increase in the last reported year. This could suggest significant investments, acquisitions, or other capital activities that have expanded the asset base considerably.

The data reveals the evolution of current liabilities and adjusted current liabilities over a five-year period.

Current Liabilities

The amount of current liabilities has consistently increased from 796,808 thousand US dollars in 2020 to a peak of 1,590,867 thousand US dollars in 2023, indicating growing short-term obligations. However, in 2024, there is a notable decrease to 1,370,105 thousand US dollars, suggesting a potential improvement in managing current liabilities or a change in the company's short-term financial strategy.

Adjusted Current Liabilities

Adjusted current liabilities follow a similar upward trend initially, rising from 349,951 thousand US dollars in 2020 to 925,843 thousand US dollars in 2023. This reflects an increase in adjusted short-term obligations over the period. In 2024, adjusted current liabilities decline sharply to 632,692 thousand US dollars, mirroring the overall trend in current liabilities and possibly indicating efforts to reduce certain liabilities or adjustments based on changes in accounting or operational factors.

Overall, the trends suggest that while the company experienced rising current liabilities over most of the observed period, culminating in 2023, there was a strategic or operational shift in 2024 resulting in a reduction of these liabilities. The similar pattern in both reported and adjusted figures implies consistent underlying factors affecting both these measures. The partial reversal in the last year may reflect improved liquidity management or debt restructuring.

The annual financial data reveals significant fluctuations in both total liabilities and adjusted total liabilities over the analyzed period.

Total Liabilities

Total liabilities increased consistently from 1,457,767 thousand US dollars in 2020 to 2,391,958 thousand US dollars in 2022. This upward trend paused slightly in 2023, with total liabilities decreasing to 2,265,220 thousand US dollars. However, a substantial rise occurred in 2024, with total liabilities nearly doubling to 4,300,904 thousand US dollars. This pattern indicates growing financial obligations, with a notable peak in the final year under review.

Adjusted Total Liabilities

Adjusted total liabilities followed a similar trend, beginning at 890,219 thousand US dollars in 2020 and increasing steadily each year until 2022, reaching 1,595,137 thousand US dollars. In 2023, there was a slight decrease to 1,489,845 thousand US dollars. A sharp increase occurred in 2024, with adjusted total liabilities rising to 3,413,261 thousand US dollars. This trajectory mirrors the pattern observed in total liabilities, suggesting that after a minor decline, the adjusted obligations significantly expanded in the last period.

Overall, the data indicate a trend of increasing liabilities, both total and adjusted, over the five-year span, with a minor decrease in 2023 followed by a marked escalation in 2024. The sharp rise in the latest year points to a considerable expansion in the company's financial commitments.

The analysis of the equity data over the five-year period reveals a steady and substantial increase in both stockholders’ equity and adjusted stockholders’ equity. This trend indicates a strengthening financial position and enhanced shareholder value.

Stockholders’ Equity

Stockholders’ equity increased consistently each year, starting from approximately 2.49 billion US dollars at the end of 2020 and reaching about 4.67 billion US dollars by the end of 2024. The growth rate appears to accelerate notably from 2022 onwards, with the largest annual increase occurring between 2023 and 2024.

Adjusted Stockholders’ Equity

Adjusted stockholders’ equity follows a similar upward trajectory, rising from around 2.33 billion US dollars at the end of 2020 to approximately 4.58 billion US dollars by the end of 2024. This parallel trend with unadjusted equity suggests consistent improvements even after accounting for adjustments.

Overall Trends and Insights

The persistent growth in equity reflects accumulation of retained earnings or additional capital inflows, indicating successful management of the company’s resources and profitable operations over the period. The higher growth rate in the latter years could be attributed to strategic initiatives, strong market performance, or improved profitability. The close alignment between stockholders’ equity and adjusted stockholders’ equity suggests minimal discrepancies or adjustments impacting the reported equity base.

The analysis of the financial data over the five-year period reveals notable trends across debt, equity, and overall capital.

Total reported debt

The total reported debt remained relatively stable from 2020 to 2021, with a slight increase from approximately 347 million to 348 million USD. In 2022, there was a significant rise to around 748 million USD, followed by a decrease in 2023 to approximately 649 million USD. However, in 2024, total reported debt surged dramatically to over 2.47 billion USD, indicating a substantial increase in leverage or borrowing during the latest period.

Stockholders’ equity

The stockholders’ equity showed a consistent upward trend throughout the entire period. Starting at approximately 2.49 billion USD in 2020, equity grew steadily each year, reaching about 4.67 billion USD by the end of 2024. This steady increase suggests continuous retention of earnings or successful capital raising activities, strengthening the company’s financial foundation.

Total reported capital

Total reported capital, the sum of debt and equity, exhibited steady growth from 2.84 billion USD in 2020 to roughly 4.05 billion USD in 2023. In 2024, total capital experienced a sharp increase to approximately 7.15 billion USD, largely driven by the dramatic rise in debt levels. This surge reflects an overall expansion of the company’s capital base, accompanied by a notable change in its capital structure.

Adjusted total debt

The adjusted total debt mirrors the trend observed in reported debt, remaining fairly consistent in the early years before rising sharply in 2022 to over 924 million USD. It decreased to about 806 million USD in 2023, but then escalated substantially to approximately 2.63 billion USD in 2024. The adjusted figures reinforce the observation of increased borrowing or liabilities near the end of the period.

Adjusted stockholders’ equity

Adjusted equity also showed a steady increase from 2.33 billion USD in 2020 to around 4.58 billion USD in 2024. The growth pattern is consistent, indicating strengthening equity base after adjusting for relevant factors, which aligns with the trend seen in reported equity values.

Adjusted total capital

Adjusted total capital expanded steadily from approximately 2.83 billion USD in 2020 to about 4.11 billion USD in 2023. Similar to the reported total capital, there was a significant increase to over 7.21 billion USD in 2024, reflecting an enlarged capital structure driven by the substantial rise in adjusted debt.

Overall, the data indicates that the company experienced moderate growth in equity over the five years, suggesting improved financial strength. However, the considerable increase in both reported and adjusted debt in 2024 points to a marked shift towards greater leverage. This change resulted in a substantial expansion of total capital, which may have implications for the company’s risk profile and financial strategy moving forward.

The analysis of the annual financial data reveals a consistent upward trend in both reported revenue and adjusted revenue over the observed five-year period. There is a steady increase year-over-year, indicating growth in the company's operational performance.

Revenue

The revenue showed continuous growth from 2,682,891 thousand US dollars in 2020 to 4,641,264 thousand US dollars in 2024. This represents a compound increase reflecting positive business expansion and increasing sales or service delivery. The increments each year demonstrate a stable enhancement in top-line performance.

Adjusted Revenue

Similar to revenue, adjusted revenue also increased yearly, starting at 2,807,929 thousand US dollars in 2020 and rising to 4,729,890 thousand US dollars by 2024. This metric, which likely accounts for non-recurring or extraordinary items, implies consistent improvement when excluding volatility or exceptional impacts, thus reinforcing the strength of core business activities.

General Observations

The gap between revenue and adjusted revenue exists throughout the period but remains relatively stable, suggesting that adjustments applied are proportionate and do not exhibit significant fluctuations over time. The progression in both figures underlines a positive growth trajectory and operational scaling.

The financial data for the periods ending December 31, 2020, through December 31, 2024, reveals notable trends in both net income and adjusted net income.

Net Income

Net income shows a consistent upward trajectory over the five-year period. Starting at approximately $590.6 million in 2020, the figure increased to $696.0 million in 2021, representing an 18% growth. This was followed by a further increase of approximately 22% in 2022, reaching nearly $849.0 million. The year 2023 saw an even stronger rise of roughly 22.5%, with net income surpassing $1 billion at $1.041 billion. In 2024, net income continued to grow but at a much slower pace, reaching approximately $1.056 billion, marking less than a 2% increase from the previous year.

Adjusted Net Income

Adjusted net income also reflects an overall positive trend but with some fluctuations. Beginning at $710.1 million in 2020, it rose mildly to $730.2 million in 2021 (about a 2.8% increase). In 2022, the adjusted net income grew more substantially by approximately 10.7% to $808.5 million. The upward trend accelerated in 2023 with a 22.3% increase to $988.3 million. However, adjusted net income declined in 2024 to $923.1 million, a decrease of roughly 6.6% compared to the prior year.

Overall, the raw net income exhibits strong and consistent growth over the reported period, indicating improving profitability. In contrast, the adjusted net income shows positive growth in the initial years but experiences a decline in the last year. This divergence in 2024 between net income and adjusted net income could suggest the presence of non-recurring items or adjustments impacting profitability measures differently, meriting further investigation.