Cadence Design Systems Inc. (NASDAQ:CDNS)

Total liabilities displayed a general upward trend from March 2020 through mid-2023, reaching a peak near mid-2024 before fluctuating slightly thereafter. This rise was largely driven by increases in both short-term and long-term obligations.

The current liabilities fluctuated moderately over the periods, with values generally increasing toward late 2023, reaching a significant high in December 2023 before experiencing some decreases. Notably, accounts payable and accrued liabilities followed a similar pattern, showing substantial rises especially in late 2022 and into 2023.

The current portion of deferred revenue exhibited steady growth across the timeline, indicating an increasing amount of revenue recognized as current liabilities, which suggests a growing volume of customer advances or unearned revenue expected to be realized within a year. The long-term portion of deferred revenue remained relatively stable with minor fluctuations, indicating consistent deferred revenue recognition beyond one year.

Long-term debt, excluding the current portion, was mostly stable at around $346 million until late 2022 when a marked increase occurred, rising substantially to over $2.4 billion by mid-2024. This sharp increase indicates significant new long-term borrowing or refinancing activities starting from the fourth quarter of 2022.

Other long-term liabilities increased from approximately $156 million in early 2020 to nearly $385 million by late 2025, showing a gradual rise over time with some fluctuations. Overall, long-term liabilities mirrored the increase in long-term debt, leading to a steep rise in total long-term obligations by mid-2024.

Stockholders’ equity demonstrated a consistent upward trajectory over the entire period, increasing from around $2.16 billion in early 2020 to over $5.1 billion by late 2025. This growth was supported by rising common stock and capital in excess of par value, which more than doubled over the analyzed timeframe.

Retained earnings showed a strong and steady increase, nearly tripling from approximately $1.88 billion to over $6.7 billion, indicating sustained profitability and earnings retention. The accumulation of retained earnings reflects continued reinvestment of profits into the business.

Treasury stock exhibited a significant and continuous increase in cost (negative value), doubling from about -$1.78 billion to over -$6.1 billion, pointing to increased share repurchase activity. This likely contributed to the elevated equity value by reducing outstanding shares.

Accumulated other comprehensive income (loss) was volatile, fluctuating between negative and positive values without a clear upward or downward trend. However, significant swings suggest exposure to items affecting comprehensive income such as foreign currency translation adjustments or unrealized gains/losses.

The revolving credit facility was constant at $350 million until a reduction starting in late 2022, declining sharply to $30 million by early 2023, indicating payoff or restructuring of revolving debt. Concurrently, the current portion of long-term debt emerged sharply in early 2024 with values around $349 million consistently, indicating upcoming maturities or reclassification of portions of long-term debt.

Total liabilities and stockholders’ equity rose steadily from approximately $3.77 billion in early 2020 to near $9.6 billion by late 2025, demonstrating an overall expansion of the company’s balance sheet. This growth was balanced between rising equity and liabilities, with equity growth supporting a significant portion of the increase in total capitalization.

The mix of increasing capital stock, rising retained earnings, growing liabilities, and expanding treasury stock highlights active financial management encompassing debt financing, earnings retention, and shareholder equity restructuring through buybacks.