Balance Sheet: Liabilities and Stockholders’ Equity

The balance sheet provides creditors, investors, and analysts with information on company resources (assets) and its sources of capital (its equity and liabilities). It normally also provides information about the future earnings capacity of a company assets as well as an indication of cash flows that may come from receivables and inventories.

Liabilities represents obligations of a company arising from past events, the settlement of which is expected to result in an outflow of economic benefits from the entity.

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

US$ in thousands

	Dec 31, 2025	Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021
Revolving credit facility	—)	—)	—)	100,000)	—)
Current portion of long-term debt	—)	—)	349,285)	—)	—)
Trade accounts payable	93,491)	5,555)	91,194)	47,113)	—)
Payroll and payroll-related accruals	384,424)	335,232)	294,108)	294,620)	254,090)
Other accrued operating liabilities	378,941)	291,905)	191,256)	215,425)	163,193)
Accounts payable and accrued liabilities	856,856)	632,692)	576,558)	557,158)	417,283)
Current portion of deferred revenue	778,435)	737,413)	665,024)	690,538)	553,942)
Current liabilities	1,635,291)	1,370,105)	1,590,867)	1,347,696)	971,225)
Long-term portion of deferred revenue	155,997)	115,168)	98,931)	91,524)	101,148)
Long-term debt, excluding current portion	2,480,150)	2,476,183)	299,771)	648,078)	347,588)
Long-term operating lease liabilities	136,289)	108,893)	115,358)	139,337)	107,121)
Other accrued liabilities	271,240)	230,555)	160,293)	165,323)	118,542)
Other long-term liabilities	407,529)	339,448)	275,651)	304,660)	225,663)
Long-term liabilities	3,043,676)	2,930,799)	674,353)	1,044,262)	674,399)
Total liabilities	4,678,967)	4,300,904)	2,265,220)	2,391,958)	1,645,624)
Preferred stock, $0.01 par value; none issued or outstanding	—)	—)	—)	—)	—)
Common stock, $0.01 par value	4,719,443)	4,181,737)	3,166,964)	2,765,673)	2,467,701)
Treasury stock, at cost	(6,344,213)	(5,309,579)	(4,604,323)	(3,824,163)	(2,740,003)
Retained earnings	7,100,756)	5,991,868)	4,936,384)	3,895,240)	3,046,288)
Accumulated other comprehensive loss	(1,805)	(190,448)	(94,754)	(91,637)	(33,311)
Stockholders’ equity	5,474,181)	4,673,578)	3,404,271)	2,745,113)	2,740,675)
Total liabilities and stockholders’ equity	10,153,148)	8,974,482)	5,669,491)	5,137,071)	4,386,299)

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 company’s liabilities demonstrate a generally increasing trend over the observed period, with a significant surge between 2023 and 2024. Stockholders’ equity also exhibits an upward trajectory, though with less volatility than liabilities. The combined effect results in a substantial growth in total liabilities and stockholders’ equity.

Current Liabilities: Current liabilities increased from approximately US$971 million in 2021 to US$1,635 million in 2025. A notable increase occurred between 2022 and 2023, followed by a decrease in 2024, and then a further increase in 2025. The primary drivers of this trend appear to be increases in accounts payable and accrued liabilities, and current portion of deferred revenue. Payroll and payroll-related accruals also contribute to the overall increase, showing consistent growth throughout the period.
Long-Term Liabilities: Long-term liabilities experienced substantial growth, particularly between 2023 and 2024, rising from approximately US$674 million to nearly US$2,931 million. This increase is largely attributable to a significant rise in long-term debt, excluding the current portion. Long-term operating lease liabilities and other long-term liabilities also contribute to the overall increase, though to a lesser extent. The growth slowed between 2024 and 2025, but remained positive.
Total Liabilities: Total liabilities increased significantly over the period, from approximately US$1,646 million in 2021 to US$4,679 million in 2025. The most substantial increase occurred between 2023 and 2024, mirroring the trend in long-term liabilities. This indicates a reliance on debt financing or significant long-term obligations.
Stockholders’ Equity: Stockholders’ equity demonstrates a consistent upward trend, increasing from approximately US$2,741 million in 2021 to US$5,474 million in 2025. This growth is primarily driven by increases in common stock and retained earnings. Treasury stock consistently shows a negative balance, representing a reduction in equity. Accumulated other comprehensive loss remains relatively small but becomes more negative over time.
Deferred Revenue: Both current and long-term portions of deferred revenue show consistent increases throughout the period. The current portion is significantly larger than the long-term portion, and both contribute to the overall increase in liabilities. This suggests a growing backlog of contracted revenue that has yet to be recognized.
Accounts Payable and Accrued Liabilities: Accounts payable and accrued liabilities increased substantially from US$417 million in 2021 to US$857 million in 2025. This increase suggests a growing volume of short-term obligations to suppliers and other creditors. The increase was particularly pronounced between 2022 and 2023, and again in 2025.

In summary, the company experienced significant growth in both liabilities and stockholders’ equity. The substantial increase in long-term debt and deferred revenue, coupled with rising accounts payable, suggests a period of expansion potentially funded by increased borrowing and advanced customer payments. The growth in retained earnings indicates profitability, contributing to the overall increase in stockholders’ equity.

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Cadence Design Systems Inc. (NASDAQ:CDNS)

Balance Sheet: Liabilities and Stockholders’ Equity