Stock Analysis on Net
Stock Analysis on Net

Cadence Design Systems Inc. (NASDAQ:CDNS)

$24.99

Net Profit Margin
since 2005

Microsoft Excel

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Calculation

Cadence Design Systems Inc., net profit margin, long-term trends, calculation

Microsoft Excel
Net profit margin = 100 × Net income (loss)1 ÷ Revenue1
Dec 31, 2024 = 100 × ÷
Dec 31, 2023 = 100 × ÷
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Dec 31, 2020 = 100 × ÷
Dec 28, 2019 = 100 × ÷
Dec 29, 2018 = 100 × ÷
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Dec 28, 2013 = 100 × ÷
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Dec 31, 2011 = 100 × ÷
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Dec 31, 2005 = 100 × ÷

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), 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 financial data exhibits substantial fluctuations and trends across multiple fiscal years, revealing periods of both significant growth and challenges.

Net Income (Loss)
Net income demonstrated a positive growth trajectory from 49,343 thousand USD in 2005 to a peak of 296,252 thousand USD in 2007, followed by a dramatic loss of 1,854,038 thousand USD in 2008. Subsequent years showed recovery with fluctuations, including loss in 2009 but returning to consistent profit from 2010 onward. Notably, net income reached new highs in recent years, culminating at 1,051,484 thousand USD in 2024, indicating strong profitability growth after the volatile period in the late 2000s.
Revenue
Revenue generally increased over the observed timeframe, beginning at approximately 1.33 billion USD in 2005 and rising steadily to over 4.64 billion USD by 2024. The only significant decline occurred in 2008 and 2009, aligning with the net income loss during the same period, suggesting external or operational challenges impacting sales. Post-2009, revenue growth was consistent and robust, with double-digit million increments occurring almost annually, reflecting effective business expansion or market demand.
Net Profit Margin
The net profit margin followed a parallel trend to net income, illustrating high volatility around the financial crisis years. It reached a negative peak in 2008 at -178.51%, indicating extreme losses relative to revenue. Subsequently, the margin recovered to positive figures from 2010, with a notable surge to 33.17% in 2012. Despite some oscillations, margins stabilized in the range of approximately 10-25% in the latter years, supporting consistent profitability relative to revenue.
Summary of Trends and Insights
The dataset reflects a period of significant volatility around 2008-2009, with severe negative net income and profit margin corresponding to a revenue dip, probably associated with macroeconomic factors. The recovery phase post-2010 shows steady revenue growth and improved profitability, with net income and margin reaching new highs by 2024. This trend suggests effective management and possibly favorable market conditions enabling sustained expansion and profitability. The presence of strong profit margins alongside increasing revenue supports the view of operational efficiency and value generation over the more recent years.

Comparison to Competitors

Cadence Design Systems Inc., net profit margin, long-term trends, comparison to competitors

Microsoft Excel
Cadence Design Systems Inc. Accenture PLC Adobe Inc. CrowdStrike Holdings Inc. Fair Isaac Corp. 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, 2024
Dec 31, 2023
Dec 31, 2022
Dec 31, 2021
Dec 31, 2020
Dec 28, 2019
Dec 29, 2018
Dec 30, 2017
Dec 31, 2016
Dec 31, 2015
Dec 31, 2014
Dec 28, 2013
Dec 29, 2012
Dec 31, 2011
Dec 31, 2010
Dec 31, 2009
Dec 31, 2008
Dec 29, 2007
Dec 30, 2006
Dec 31, 2005

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), 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., net profit margin, long-term trends, comparison to sector (software & services)

Microsoft Excel
Cadence Design Systems Inc. Software & Services
Dec 31, 2024
Dec 31, 2023
Dec 31, 2022
Dec 31, 2021
Dec 31, 2020
Dec 28, 2019
Dec 29, 2018
Dec 30, 2017
Dec 31, 2016
Dec 31, 2015
Dec 31, 2014
Dec 28, 2013
Dec 29, 2012
Dec 31, 2011
Dec 31, 2010
Dec 31, 2009
Dec 31, 2008
Dec 29, 2007
Dec 30, 2006
Dec 31, 2005

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), 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., net profit margin, long-term trends, comparison to industry (information technology)

Microsoft Excel
Cadence Design Systems Inc. Information Technology
Dec 31, 2024
Dec 31, 2023
Dec 31, 2022
Dec 31, 2021
Dec 31, 2020
Dec 28, 2019
Dec 29, 2018
Dec 30, 2017
Dec 31, 2016
Dec 31, 2015
Dec 31, 2014
Dec 28, 2013
Dec 29, 2012
Dec 31, 2011
Dec 31, 2010
Dec 31, 2009
Dec 31, 2008
Dec 29, 2007
Dec 30, 2006
Dec 31, 2005

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), 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).