Return on Assets (ROA)
since 2005
Calculation
Cadence Design Systems Inc., ROA, long-term trends, calculation
| ROA | = | 100 | × | Net income (loss)1 | ÷ | Total assets1 | |
|---|---|---|---|---|---|---|---|
| Dec 31, 2024 | 11.76% | = | 100 | × | 1,055,484) | ÷ | 8,974,482) |
| Dec 31, 2023 | 18.36% | = | 100 | × | 1,041,144) | ÷ | 5,669,491) |
| Dec 31, 2022 | 16.53% | = | 100 | × | 848,952) | ÷ | 5,137,071) |
| Dec 31, 2021 | 15.87% | = | 100 | × | 695,955) | ÷ | 4,386,299) |
| Dec 31, 2020 | 14.95% | = | 100 | × | 590,644) | ÷ | 3,950,785) |
| Dec 28, 2019 | 29.46% | = | 100 | × | 988,979) | ÷ | 3,357,225) |
| Dec 29, 2018 | 14.01% | = | 100 | × | 345,777) | ÷ | 2,468,654) |
| Dec 30, 2017 | 8.44% | = | 100 | × | 204,101) | ÷ | 2,418,714) |
| Dec 31, 2016 | 9.69% | = | 100 | × | 203,086) | ÷ | 2,096,908) |
| Dec 31, 2015 | 10.74% | = | 100 | × | 252,417) | ÷ | 2,351,015) |
| Dec 31, 2014 | 4.95% | = | 100 | × | 158,898) | ÷ | 3,209,556) |
| Dec 28, 2013 | 6.76% | = | 100 | × | 164,243) | ÷ | 2,428,601) |
| Dec 29, 2012 | 19.24% | = | 100 | × | 439,948) | ÷ | 2,287,003) |
| Dec 31, 2011 | 4.10% | = | 100 | × | 72,229) | ÷ | 1,761,269) |
| Dec 31, 2010 | 7.31% | = | 100 | × | 126,538) | ÷ | 1,732,116) |
| Dec 31, 2009 | -10.62% | = | 100 | × | (149,871) | ÷ | 1,410,587) |
| Dec 31, 2008 | -110.44% | = | 100 | × | (1,854,038) | ÷ | 1,678,714) |
| Dec 29, 2007 | 7.65% | = | 100 | × | 296,252) | ÷ | 3,871,150) |
| Dec 30, 2006 | 4.14% | = | 100 | × | 142,592) | ÷ | 3,442,822) |
| Dec 31, 2005 | 1.45% | = | 100 | × | 49,343) | ÷ | 3,401,312) |
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
- Net Income (Loss)
- The net income demonstrates considerable volatility across the period analyzed. Early years show positive growth with income increasing from $49,343 thousand in 2005 to a peak of $296,252 thousand in 2007. However, a significant downturn follows in 2008, marking a substantial loss of approximately $-1,854,038 thousand, with losses persisting into 2009. Recovery begins in 2010, transitioning back to positive net income, though with fluctuating results. From 2012 onward, there is a general upward trend, culminating in a high of over $1 billion in 2024. This pattern indicates a period of financial instability around 2008–2009, followed by sustained recovery and growth.
- Total Assets
- The total assets display an overall upward trajectory with some interruptions. Assets initially increase modestly from about $3.4 billion in 2005 to nearly $3.9 billion in 2007. A sharp decline occurs in 2008 and 2009, dropping to roughly $1.4 billion by the end of 2009. From 2010 onwards, the asset base consistently grows, reaching a notable $8.97 billion by 2024. This long-term expansion reflects an increased scale of operations and asset accumulation, despite early period contractions coinciding with the net income losses.
- Return on Assets (ROA)
- ROA figures highlight the effective use of assets to generate profit. Positive ROA in the initial years peaks at 7.65% in 2007, before plummeting to a negative -110.44% in 2008 and -10.62% in 2009, which aligns with the reported net losses and asset dips. Recovery is evident starting in 2010, with ROA climbing back over 7%. From 2012, ROA improves significantly, reaching a maximum of 29.46% in 2019. A slight decline occurs thereafter but remains relatively high, ending at 11.76% in 2024. The pattern underscores initial operational challenges during the crisis years, followed by enhanced asset profitability in subsequent years.
- General Observations
- The financial data reflects a company that encountered severe challenges around 2008–2009, marked by large losses and shrinking asset base. Post-crisis years reveal a recovery phase characterized by increasing net income, steady asset growth, and improving profitability ratios. The increases in total assets and net income suggest successful expansion and operational improvement. ROA trends corroborate this improvement, demonstrating more efficient asset utilization over time, particularly after 2010. Despite fluctuations, the company shows a robust capability to rebound and achieve growth in the longer term.
Comparison to Competitors
Cadence Design Systems Inc., ROA, long-term trends, comparison to competitors
| 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 | 11.76% | 12.99% | 18.39% | 1.34% | 29.85% | 4.39% | 9.22% | 17.21% | 7.42% | 7.29% | 12.89% | 4.14% | 6.99% | 17.31% | 8.39% |
| Dec 31, 2023 | 18.36% | 13.41% | 18.23% | -3.65% | 27.26% | 5.55% | 8.58% | 17.56% | 6.33% | 4.64% | 3.03% | 0.21% | 9.96% | 11.90% | -2.72% |
| Dec 31, 2022 | 16.53% | 14.55% | 17.51% | -6.49% | 25.90% | 1.29% | 7.45% | 19.94% | 6.15% | -10.80% | -2.18% | 1.52% | 2.44% | 10.45% | 0.28% |
| Dec 31, 2021 | 15.87% | 13.68% | 17.70% | -3.39% | 25.01% | 4.35% | 13.29% | 18.36% | 10.48% | -16.02% | -4.87% | 6.14% | 2.13% | 8.66% | -3.24% |
| Dec 31, 2020 | 14.95% | 13.78% | 21.66% | -10.09% | 14.72% | 3.58% | 16.70% | 14.70% | 8.78% | -43.35% | -2.95% | 0.23% | 1.36% | 8.27% | -7.05% |
| Dec 28, 2019 | 29.46% | 16.04% | 14.22% | — | 13.40% | 6.20% | 24.78% | 13.69% | 10.20% | — | -1.24% | 3.61% | 10.41% | 8.31% | -7.58% |
| Dec 29, 2018 | 14.01% | 16.61% | 13.80% | — | 11.35% | 7.07% | 23.39% | 6.40% | 2.79% | — | -2.54% | 0.61% | -0.69% | 7.04% | -6.49% |
| Dec 30, 2017 | 8.44% | 15.18% | 11.65% | — | 10.21% | 4.59% | 23.87% | 8.80% | 6.92% | — | -6.30% | 1.02% | -4.39% | 2.53% | -12.89% |
| Dec 31, 2016 | 9.69% | 19.95% | 9.20% | — | 8.96% | 10.11% | 23.04% | 8.67% | 7.93% | — | -8.18% | -0.37% | -22.22% | 5.09% | -10.62% |
| Dec 31, 2015 | 10.74% | 16.72% | 5.37% | — | 7.03% | 11.94% | 7.35% | 6.92% | 8.96% | — | -8.40% | -2.46% | -10.98% | 4.48% | -10.51% |
| Dec 31, 2014 | 4.95% | 16.41% | 2.49% | — | 7.96% | 10.23% | 17.44% | 12.81% | 12.13% | — | -15.32% | -2.54% | -12.59% | 5.43% | -7.93% |
| Dec 28, 2013 | 6.76% | 19.46% | 2.79% | — | 7.76% | 13.06% | 15.64% | 15.35% | 13.35% | — | -4.99% | -4.89% | -6.31% | 5.68% | -12.43% |
| Dec 29, 2012 | 19.24% | 15.32% | 8.35% | — | 7.94% | 13.93% | 16.91% | 14.00% | 12.74% | — | 0.18% | -0.28% | -7.81% | 4.40% | — |
| Dec 31, 2011 | 4.10% | 14.48% | 9.26% | — | 6.34% | 13.62% | 12.41% | 21.30% | 11.62% | — | — | 2.09% | — | 6.57% | — |
| Dec 31, 2010 | 7.31% | 13.87% | 9.52% | — | 5.74% | 13.07% | 11.04% | 21.79% | 9.96% | — | — | 3.28% | — | 7.21% | — |
| Dec 31, 2009 | -10.62% | 12.97% | 5.31% | — | 4.99% | 12.31% | 9.26% | 18.71% | 11.80% | — | — | 2.93% | — | 5.71% | — |
| Dec 31, 2008 | -110.44% | 13.64% | 14.98% | — | 6.58% | 11.26% | 10.22% | 24.29% | 11.68% | — | — | 1.68% | — | 6.93% | — |
| Dec 29, 2007 | 7.65% | 11.57% | 12.67% | — | 8.20% | 8.65% | 10.35% | 22.26% | 12.36% | — | — | 0.07% | — | 4.99% | — |
| Dec 30, 2006 | 4.14% | 10.33% | 8.48% | — | 7.83% | 9.19% | 15.05% | 18.10% | 11.65% | — | — | 6.55% | — | 1.15% | — |
| Dec 31, 2005 | 1.45% | 10.50% | 24.70% | — | 9.96% | 7.50% | 14.05% | 17.30% | 13.95% | — | — | 2.62% | — | -0.72% | — |
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., ROA, long-term trends, comparison to sector (software & services)
| Cadence Design Systems Inc. | Software & Services | |
|---|---|---|
| Dec 31, 2024 | 11.76% | 12.19% |
| Dec 31, 2023 | 18.36% | 11.21% |
| Dec 31, 2022 | 16.53% | 11.41% |
| Dec 31, 2021 | 15.87% | 12.29% |
| Dec 31, 2020 | 14.95% | 9.68% |
| Dec 28, 2019 | 29.46% | 10.84% |
| Dec 29, 2018 | 14.01% | 6.12% |
| Dec 30, 2017 | 8.44% | 7.30% |
| Dec 31, 2016 | 9.69% | 8.86% |
| Dec 31, 2015 | 10.74% | 8.53% |
| Dec 31, 2014 | 4.95% | 11.17% |
| Dec 28, 2013 | 6.76% | 13.45% |
| Dec 29, 2012 | 19.24% | 13.34% |
| Dec 31, 2011 | 4.10% | 15.31% |
| Dec 31, 2010 | 7.31% | 14.65% |
| Dec 31, 2009 | -10.62% | 13.59% |
| Dec 31, 2008 | -110.44% | 14.28% |
| Dec 29, 2007 | 7.65% | 12.82% |
| Dec 30, 2006 | 4.14% | 12.17% |
| Dec 31, 2005 | 1.45% | 11.52% |
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., ROA, long-term trends, comparison to industry (information technology)
| Cadence Design Systems Inc. | Information Technology | |
|---|---|---|
| Dec 31, 2024 | 11.76% | 11.95% |
| Dec 31, 2023 | 18.36% | 12.52% |
| Dec 31, 2022 | 16.53% | 14.57% |
| Dec 31, 2021 | 15.87% | 14.67% |
| Dec 31, 2020 | 14.95% | 11.45% |
| Dec 28, 2019 | 29.46% | 11.78% |
| Dec 29, 2018 | 14.01% | 10.94% |
| Dec 30, 2017 | 8.44% | 9.05% |
| Dec 31, 2016 | 9.69% | 9.79% |
| Dec 31, 2015 | 10.74% | 11.53% |
| Dec 31, 2014 | 4.95% | 12.36% |
| Dec 28, 2013 | 6.76% | 13.26% |
| Dec 29, 2012 | 19.24% | 14.08% |
| Dec 31, 2011 | 4.10% | 15.10% |
| Dec 31, 2010 | 7.31% | 14.50% |
| Dec 31, 2009 | -10.62% | 10.08% |
| Dec 31, 2008 | -110.44% | 11.99% |
| Dec 29, 2007 | 7.65% | 12.03% |
| Dec 30, 2006 | 4.14% | 12.21% |
| Dec 31, 2005 | 1.45% | 12.76% |
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).