Debt to Equity
since 2005
Calculation
Cadence Design Systems Inc., debt to equity, long-term trends, calculation
| Debt to equity | = | Total debt1 | ÷ | Stockholders’ equity1 | |
|---|---|---|---|---|---|
| Dec 31, 2025 | 0.45 | = | 2,480,150) | ÷ | 5,474,181) |
| Dec 31, 2024 | 0.53 | = | 2,476,183) | ÷ | 4,673,578) |
| Dec 31, 2023 | 0.19 | = | 649,056) | ÷ | 3,404,271) |
| Dec 31, 2022 | 0.27 | = | 748,078) | ÷ | 2,745,113) |
| Dec 31, 2021 | 0.13 | = | 347,588) | ÷ | 2,740,675) |
| Dec 31, 2020 | 0.14 | = | 346,793) | ÷ | 2,493,018) |
| Dec 28, 2019 | 0.16 | = | 346,019) | ÷ | 2,102,894) |
| Dec 29, 2018 | 0.35 | = | 445,291) | ÷ | 1,288,401) |
| Dec 30, 2017 | 0.74 | = | 729,369) | ÷ | 989,202) |
| Dec 31, 2016 | 0.93 | = | 693,493) | ÷ | 741,770) |
| Dec 31, 2015 | 0.25 | = | 348,788) | ÷ | 1,376,115) |
| Dec 31, 2014 | 0.52 | = | 691,175) | ÷ | 1,333,574) |
| Dec 28, 2013 | 0.28 | = | 324,826) | ÷ | 1,156,105) |
| Dec 29, 2012 | 0.49 | = | 447,011) | ÷ | 915,171) |
| Dec 31, 2011 | 1.04 | = | 425,981) | ÷ | 411,130) |
| Dec 31, 2010 | 1.99 | = | 549,662) | ÷ | 276,654) |
| Dec 31, 2009 | 4.02 | = | 436,012) | ÷ | 108,373) |
| Dec 31, 2008 | 4.91 | = | 500,178) | ÷ | 101,968) |
| Dec 29, 2007 | 0.35 | = | 730,385) | ÷ | 2,080,066) |
| Dec 30, 2006 | 0.45 | = | 758,385) | ÷ | 1,699,291) |
| Dec 31, 2005 | 0.31 | = | 580,000) | ÷ | 1,844,704) |
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), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-28), 10-K (reporting date: 2018-12-29), 10-K (reporting date: 2017-12-30), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-28), 10-K (reporting date: 2012-12-29), 10-K (reporting date: 2011-12-31), 10-K (reporting date: 2010-12-31), 10-K (reporting date: 2009-12-31), 10-K (reporting date: 2008-12-31), 10-K (reporting date: 2007-12-29), 10-K (reporting date: 2006-12-30), 10-K (reporting date: 2005-12-31).
1 US$ in thousands
The debt-to-equity ratio for the analyzed period demonstrates significant fluctuations. Initially, the ratio exhibits an increase from 0.31 in 2005 to 0.45 in 2006, followed by a decrease to 0.35 in 2007. A dramatic spike occurs in 2008, reaching 4.91, before declining sharply in subsequent years.
- Initial Period (2005-2007)
- During this period, the debt-to-equity ratio remained relatively stable, fluctuating between 0.31 and 0.45. This suggests a moderate level of financial leverage, with equity consistently exceeding debt.
- Significant Increase (2008-2009)
- The years 2008 and 2009 witnessed a substantial increase in the debt-to-equity ratio, peaking at 4.91 in 2008 and remaining high at 4.02 in 2009. This indicates a considerable reliance on debt financing relative to equity during these years, potentially reflecting financial distress or significant investment activity. The substantial decrease in stockholders’ equity in 2008 and 2009 contributed to this increase.
- Decline and Stabilization (2010-2017)
- From 2010 through 2017, the debt-to-equity ratio generally trended downward, although with some volatility. It decreased from 1.99 in 2010 to 0.74 in 2017. This suggests a reduction in financial leverage and an improvement in the company’s financial structure. The ratio remained below 1.0 for most of this period, indicating that equity consistently outweighed debt.
- Recent Fluctuations (2018-2025)
- The period from 2018 to 2025 shows renewed fluctuations. The ratio decreased to a low of 0.13 in 2019 and 0.14 in 2020, indicating a very conservative capital structure. However, it increased to 0.27 in 2021, 0.19 in 2022, and then rose significantly to 0.53 in 2023 and 0.45 in 2024. This recent increase suggests a renewed, though still moderate, reliance on debt financing. The substantial increase in total debt in 2023, coupled with a smaller increase in stockholders’ equity, drove this change.
Overall, the debt-to-equity ratio has experienced considerable variation over the analyzed timeframe. While periods of financial conservatism are evident, particularly between 2019 and 2022, the recent increase in the ratio warrants monitoring to assess the long-term implications for the company’s financial health.
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Comparison to Competitors
Cadence Design Systems Inc., debt to equity, long-term trends, comparison to competitors
| Cadence Design Systems Inc. | Accenture PLC | Adobe Inc. | AppLovin Corp. | CrowdStrike Holdings Inc. | Datadog Inc. | International Business Machines Corp. | Intuit Inc. | Microsoft Corp. | Oracle Corp. | Palantir Technologies Inc. | Palo Alto Networks Inc. | Salesforce Inc. | ServiceNow Inc. | Synopsys Inc. | Workday Inc. | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Dec 31, 2025 | 0.45 | 0.17 | 0.53 | 1.65 | 0.23 | 0.26 | 1.88 | 0.30 | 0.26 | 4.53 | 0.00 | 0.00 | 0.15 | 0.12 | 0.48 | 0.33 |
| Dec 31, 2024 | 0.53 | 0.04 | 0.40 | 3.22 | 0.32 | 0.59 | 2.01 | 0.33 | 0.29 | 9.98 | 0.00 | 0.19 | 0.17 | 0.15 | 0.00 | 0.37 |
| Dec 31, 2023 | 0.19 | 0.01 | 0.22 | 2.48 | 0.51 | 0.37 | 2.51 | 0.35 | 0.31 | 84.33 | 0.00 | 1.14 | 0.20 | 0.20 | 0.00 | 0.53 |
| Dec 31, 2022 | 0.27 | 0.00 | 0.29 | 1.69 | 0.72 | 0.52 | 2.32 | 0.42 | 0.39 | — | 0.00 | 17.51 | 0.19 | 0.30 | 0.00 | 0.41 |
| Dec 31, 2021 | 0.13 | 0.00 | 0.28 | 1.51 | 0.85 | 0.71 | 2.74 | 0.21 | 0.50 | 16.08 | 0.00 | 5.08 | 0.07 | 0.43 | 0.02 | 0.55 |
| Dec 31, 2020 | 0.14 | 0.00 | 0.31 | — | 0.00 | 0.60 | 2.99 | 0.66 | 0.62 | 5.93 | 0.13 | 2.80 | 0.09 | 0.58 | 0.03 | 0.51 |
| Dec 28, 2019 | 0.16 | 0.00 | 0.39 | — | — | 0.00 | 3.02 | 0.12 | 0.77 | 2.58 | — | 0.90 | 0.22 | 0.33 | 0.03 | 0.62 |
| Dec 29, 2018 | 0.35 | 0.00 | 0.44 | — | — | — | 2.73 | 0.19 | 0.97 | 1.33 | — | 1.99 | 0.21 | 0.60 | 0.13 | 0.94 |
| Dec 30, 2017 | 0.74 | 0.00 | 0.22 | — | — | — | 2.66 | 0.36 | 1.23 | 1.08 | — | 0.69 | 0.32 | 2.01 | 0.04 | 0.46 |
| Dec 31, 2016 | 0.93 | 0.00 | 0.26 | — | — | — | 2.31 | 0.86 | 0.76 | 0.93 | — | 0.64 | 0.36 | 1.31 | 0.06 | 0.45 |
| Dec 31, 2015 | 0.25 | 0.00 | 0.27 | — | — | — | 2.80 | 0.21 | 0.44 | 0.86 | — | 1.00 | 0.49 | 0.84 | 0.07 | 0.44 |
| Dec 31, 2014 | 0.52 | 0.00 | 0.22 | — | — | — | 3.44 | 0.16 | 0.25 | 0.52 | — | 1.00 | 0.79 | 1.04 | 0.02 | 0.41 |
| Dec 28, 2013 | 0.28 | 0.01 | 0.23 | — | — | — | 1.74 | 0.14 | 0.20 | 0.41 | — | 0.00 | 0.25 | 1.05 | 0.04 | 0.04 |
| Dec 29, 2012 | 0.49 | 0.00 | 0.23 | — | — | — | 1.76 | 0.18 | 0.18 | 0.38 | — | 0.00 | 0.35 | 0.00 | 0.05 | — |
| Dec 31, 2011 | 1.04 | 0.00 | 0.26 | — | — | — | 1.56 | 0.38 | 0.21 | 0.40 | — | — | 0.38 | — | 0.00 | — |
| Dec 31, 2010 | 1.99 | 0.00 | 0.29 | — | — | — | 1.24 | 0.35 | 0.13 | 0.48 | — | — | 0.45 | — | 0.00 | — |
| Dec 31, 2009 | 4.02 | 0.00 | 0.20 | — | — | — | 1.15 | 0.39 | 0.15 | 0.41 | — | — | 0.01 | — | 0.00 | — |
| Dec 31, 2008 | 4.91 | 0.00 | 0.08 | — | — | — | 2.52 | 0.48 | 0.00 | 0.49 | — | — | 0.00 | — | 0.00 | — |
| Dec 29, 2007 | 0.35 | 0.01 | 0.00 | — | — | — | 1.24 | 0.49 | 0.00 | 0.45 | — | — | 0.00 | — | 0.00 | — |
| Dec 30, 2006 | 0.45 | 0.03 | 0.00 | — | — | — | 0.80 | 0.00 | 0.00 | 0.39 | — | — | 0.00 | — | 0.00 | — |
| Dec 31, 2005 | 0.31 | 0.04 | 0.00 | — | — | — | 0.68 | 0.00 | 0.00 | 0.26 | — | — | 0.01 | — | 0.00 | — |
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), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-28), 10-K (reporting date: 2018-12-29), 10-K (reporting date: 2017-12-30), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-28), 10-K (reporting date: 2012-12-29), 10-K (reporting date: 2011-12-31), 10-K (reporting date: 2010-12-31), 10-K (reporting date: 2009-12-31), 10-K (reporting date: 2008-12-31), 10-K (reporting date: 2007-12-29), 10-K (reporting date: 2006-12-30), 10-K (reporting date: 2005-12-31).
Comparison to Sector (Software & Services)
Cadence Design Systems Inc., debt to equity, long-term trends, comparison to sector (software & services)
| Cadence Design Systems Inc. | Software & Services | |
|---|---|---|
| Dec 31, 2025 | 0.45 | 0.49 |
| Dec 31, 2024 | 0.53 | 0.54 |
| Dec 31, 2023 | 0.19 | 0.64 |
| Dec 31, 2022 | 0.27 | 0.71 |
| Dec 31, 2021 | 0.13 | 0.83 |
| Dec 31, 2020 | 0.14 | 0.94 |
| Dec 28, 2019 | 0.16 | 1.04 |
| Dec 29, 2018 | 0.35 | 1.07 |
| Dec 30, 2017 | 0.74 | 1.14 |
| Dec 31, 2016 | 0.93 | 0.90 |
| Dec 31, 2015 | 0.25 | 0.73 |
| Dec 31, 2014 | 0.52 | 0.54 |
| Dec 28, 2013 | 0.28 | 0.46 |
| Dec 29, 2012 | 0.49 | 0.44 |
| Dec 31, 2011 | 1.04 | 0.47 |
| Dec 31, 2010 | 1.99 | 0.46 |
| Dec 31, 2009 | 4.02 | 0.44 |
| Dec 31, 2008 | 4.91 | 0.56 |
| Dec 29, 2007 | 0.35 | 0.50 |
| Dec 30, 2006 | 0.45 | 0.31 |
| Dec 31, 2005 | 0.31 | 0.26 |
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), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-28), 10-K (reporting date: 2018-12-29), 10-K (reporting date: 2017-12-30), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-28), 10-K (reporting date: 2012-12-29), 10-K (reporting date: 2011-12-31), 10-K (reporting date: 2010-12-31), 10-K (reporting date: 2009-12-31), 10-K (reporting date: 2008-12-31), 10-K (reporting date: 2007-12-29), 10-K (reporting date: 2006-12-30), 10-K (reporting date: 2005-12-31).
Comparison to Industry (Information Technology)
Cadence Design Systems Inc., debt to equity, long-term trends, comparison to industry (information technology)
| Cadence Design Systems Inc. | Information Technology | |
|---|---|---|
| Dec 31, 2025 | 0.45 | 0.52 |
| Dec 31, 2024 | 0.53 | 0.62 |
| Dec 31, 2023 | 0.19 | 0.66 |
| Dec 31, 2022 | 0.27 | 0.70 |
| Dec 31, 2021 | 0.13 | 0.83 |
| Dec 31, 2020 | 0.14 | 0.96 |
| Dec 28, 2019 | 0.16 | 0.98 |
| Dec 29, 2018 | 0.35 | 0.83 |
| Dec 30, 2017 | 0.74 | 0.81 |
| Dec 31, 2016 | 0.93 | 0.66 |
| Dec 31, 2015 | 0.25 | 0.56 |
| Dec 31, 2014 | 0.52 | 0.39 |
| Dec 28, 2013 | 0.28 | 0.29 |
| Dec 29, 2012 | 0.49 | 0.25 |
| Dec 31, 2011 | 1.04 | 0.27 |
| Dec 31, 2010 | 1.99 | 0.25 |
| Dec 31, 2009 | 4.02 | 0.26 |
| Dec 31, 2008 | 4.91 | 0.28 |
| Dec 29, 2007 | 0.35 | 0.26 |
| Dec 30, 2006 | 0.45 | 0.19 |
| Dec 31, 2005 | 0.31 | 0.15 |
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), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-28), 10-K (reporting date: 2018-12-29), 10-K (reporting date: 2017-12-30), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-28), 10-K (reporting date: 2012-12-29), 10-K (reporting date: 2011-12-31), 10-K (reporting date: 2010-12-31), 10-K (reporting date: 2009-12-31), 10-K (reporting date: 2008-12-31), 10-K (reporting date: 2007-12-29), 10-K (reporting date: 2006-12-30), 10-K (reporting date: 2005-12-31).