Income Statement
The income statement presents information on the financial results of a company business activities over a period of time. The income statement communicates how much revenue the company generated during a period and what cost it incurred in connection with generating that revenue.
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- Statement of Comprehensive Income
- Cash Flow Statement
- Common-Size Income Statement
- Common-Size Balance Sheet: Liabilities and Stockholders’ Equity
- Analysis of Solvency Ratios
- Analysis of Short-term (Operating) Activity Ratios
- Net Profit Margin since 2005
- Operating Profit Margin since 2005
- Return on Assets (ROA) since 2005
- Analysis of Debt
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Cadence Design Systems Inc., consolidated income statement
US$ in thousands
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).
- Revenue and Segment Performance
- The total revenue demonstrated a consistent upward trend over the five-year period, increasing from approximately $2.68 billion in 2020 to about $4.64 billion in 2024. Product and maintenance revenue showed steady growth each year, rising from $2.54 billion in 2020 to $4.21 billion in 2024. Service revenue also exhibited significant growth, more than doubling from roughly $146 million in 2020 to $428 million in 2024, indicating an expanding service segment contribution to total revenue.
- Cost and Gross Margin Trends
- Costs associated with product and maintenance increased from $231 million in 2020 to $436 million in 2024, while service-related costs rose notably from $74 million to $211 million over the same period. The total cost of revenue increased substantially, yet gross margin maintained an increasing trend, improving from about $2.38 billion in 2020 to $3.99 billion in 2024. This suggests effective cost management relative to revenue growth, maintaining a strong gross profitability position.
- Operating Expenses
- Operating expenses also trended upward: marketing and sales expenses increased from $516 million in 2020 to $757 million in 2024, reflecting possible investments in customer acquisition and brand development. Research and development costs consistently rose from $1.03 billion to $1.55 billion, indicating sustained focus on innovation and product development. General and administrative expenses increased from $154 million to $282 million, which may reflect scaling administrative activities accompanying growth. Amortization of acquired intangibles remained relatively stable in earlier years but showed a spike in 2024, potentially linked to acquisitions or asset revaluation.
- Income from Operations
- Income from operations exhibited strong growth, increasing from $646 million in 2020 to approximately $1.35 billion in 2024. The upward trajectory reflects a combination of robust revenue growth outpacing the increases in costs and operating expenses, suggesting improving operational efficiency and profitability.
- Financial Income and Expenses
- Interest expense increased substantially from $21 million in 2020 to $76 million in 2024, indicating higher debt levels or increased cost of borrowing. Conversely, interest income rose significantly from $3.8 million to $62.5 million, improving net interest results. Gains and losses on investments and securities displayed volatility, with slight gains recorded in recent years. Gains on investments particularly surged in 2023 and 2024, contributing positively to other income. Foreign exchange losses increased negatively in recent years, impacting overall other expense categories.
- Other Income and Net Effects
- The net other income category showed strong positive growth, from $7.9 million in 2020 to $121 million in 2024, fueled largely by gains on investments and securities, partially offset by growing foreign exchange losses and other expenses.
- Income Before Taxes and Net Income
- Income before provision for income taxes rose from $633 million in 2020 to nearly $1.40 billion in 2024, reinforcing the strong operational and financial performance. Provision for income taxes rose sharply from $42 million to $340 million over the period, resulting in net income growth from $591 million in 2020 to $1.06 billion in 2024, reflecting effective tax management alongside increased profitability.
- Overall Summary
- The data reflect a company experiencing sustained growth in both revenues and profitability. The continuous increase in revenue from both product and services segments, coupled with expanding gross margins and controlled operating expenses, has driven strong income growth. Rising interest expenses and tax provisions present areas for careful monitoring but have not impeded the overall upward financial trajectory. The notable increases in research and development and marketing expenditures underscore a commitment to innovation and market expansion. Gains on investments and other income sources have also provided supplementary financial benefits in recent years.