Stock Analysis on Net
Stock Analysis on Net

Cadence Design Systems Inc. (NASDAQ:CDNS)

$24.99

Return on Assets (ROA)
since 2005

Microsoft Excel

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Calculation

Cadence Design Systems Inc., ROA, long-term trends, calculation

Microsoft Excel
ROA = 100 × Net income (loss)1 ÷ Total assets1
Dec 31, 2025 = 100 × ÷
Dec 31, 2024 = 100 × ÷
Dec 31, 2023 = 100 × ÷
Dec 31, 2022 = 100 × ÷
Dec 31, 2021 = 100 × ÷
Dec 31, 2020 = 100 × ÷
Dec 28, 2019 = 100 × ÷
Dec 29, 2018 = 100 × ÷
Dec 30, 2017 = 100 × ÷
Dec 31, 2016 = 100 × ÷
Dec 31, 2015 = 100 × ÷
Dec 31, 2014 = 100 × ÷
Dec 28, 2013 = 100 × ÷
Dec 29, 2012 = 100 × ÷
Dec 31, 2011 = 100 × ÷
Dec 31, 2010 = 100 × ÷
Dec 31, 2009 = 100 × ÷
Dec 31, 2008 = 100 × ÷
Dec 29, 2007 = 100 × ÷
Dec 30, 2006 = 100 × ÷
Dec 31, 2005 = 100 × ÷

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 Return on Assets (ROA) exhibited significant fluctuations over the observed period, ranging from substantial positive returns to a considerable loss. Initial years demonstrated a generally increasing trend, followed by a period of volatility and subsequent recovery, culminating in consistently strong returns in recent years.

Initial Growth (2005-2007)
From 2005 to 2007, ROA increased steadily, moving from 1.45% to 7.65%. This indicates improving profitability relative to the asset base during this timeframe. The increase suggests effective asset utilization and/or improved net income generation.
Significant Loss and Recovery (2008-2010)
2008 witnessed a dramatic decline in ROA, resulting in a loss of -110.44%. This was followed by a negative ROA of -10.62% in 2009. The ROA recovered to 7.31% in 2010, signaling a return to profitability, though not yet reaching pre-2008 levels. The substantial loss in 2008 likely reflects a significant net loss coupled with a decrease in total assets.
Moderate Fluctuations (2011-2014)
The period between 2011 and 2014 showed moderate fluctuations in ROA, ranging from 4.10% to 6.76%. While positive, these values suggest a period of relative stability without substantial growth. The ROA remained within a narrow band, indicating consistent, but not exceptional, performance.
Strong Performance and Peak (2015-2019)
From 2015 to 2019, ROA experienced a strong upward trend, peaking at 29.46% in 2019. This period demonstrates a significant improvement in the company’s ability to generate earnings from its assets. The ROA values increased from 10.74% in 2015 to nearly 30% in 2019, representing a substantial increase in profitability and efficiency.
Recent Performance (2020-2025)
ROA remained consistently high between 2020 and 2025, fluctuating between 14.95% and 18.36%, before decreasing to 11.76% and 10.92% in the final two years. While a slight decrease is observed in the most recent years, the ROA remained at a strong level, indicating continued effective asset management and profitability. The values suggest a sustained ability to generate substantial returns on investment.

Overall, the ROA demonstrates a cyclical pattern with a period of significant disruption followed by a strong recovery and sustained high performance. The recent trend suggests continued profitability, although a slight moderation in returns is observed towards the end of the analyzed period.

Comparison to Competitors

Cadence Design Systems Inc., ROA, long-term trends, comparison to competitors

Microsoft Excel
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
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: 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., ROA, long-term trends, comparison to sector (software & services)

Microsoft Excel
Cadence Design Systems Inc. Software & Services
Dec 31, 2025
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: 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., ROA, long-term trends, comparison to industry (information technology)

Microsoft Excel
Cadence Design Systems Inc. Information Technology
Dec 31, 2025
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: 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).