Return on Equity (ROE)
since 2005
Calculation
Cadence Design Systems Inc., ROE, long-term trends, calculation
| ROE | = | 100 | × | Net income (loss)1 | ÷ | Stockholders’ equity1 | |
|---|---|---|---|---|---|---|---|
| Dec 31, 2024 | 22.58% | = | 100 | × | 1,055,484) | ÷ | 4,673,578) |
| Dec 31, 2023 | 30.58% | = | 100 | × | 1,041,144) | ÷ | 3,404,271) |
| Dec 31, 2022 | 30.93% | = | 100 | × | 848,952) | ÷ | 2,745,113) |
| Dec 31, 2021 | 25.39% | = | 100 | × | 695,955) | ÷ | 2,740,675) |
| Dec 31, 2020 | 23.69% | = | 100 | × | 590,644) | ÷ | 2,493,018) |
| Dec 28, 2019 | 47.03% | = | 100 | × | 988,979) | ÷ | 2,102,894) |
| Dec 29, 2018 | 26.84% | = | 100 | × | 345,777) | ÷ | 1,288,401) |
| Dec 30, 2017 | 20.63% | = | 100 | × | 204,101) | ÷ | 989,202) |
| Dec 31, 2016 | 27.38% | = | 100 | × | 203,086) | ÷ | 741,770) |
| Dec 31, 2015 | 18.34% | = | 100 | × | 252,417) | ÷ | 1,376,115) |
| Dec 31, 2014 | 11.92% | = | 100 | × | 158,898) | ÷ | 1,333,574) |
| Dec 28, 2013 | 14.21% | = | 100 | × | 164,243) | ÷ | 1,156,105) |
| Dec 29, 2012 | 48.07% | = | 100 | × | 439,948) | ÷ | 915,171) |
| Dec 31, 2011 | 17.57% | = | 100 | × | 72,229) | ÷ | 411,130) |
| Dec 31, 2010 | 45.74% | = | 100 | × | 126,538) | ÷ | 276,654) |
| Dec 31, 2009 | -138.29% | = | 100 | × | (149,871) | ÷ | 108,373) |
| Dec 31, 2008 | -1,818.25% | = | 100 | × | (1,854,038) | ÷ | 101,968) |
| Dec 29, 2007 | 14.24% | = | 100 | × | 296,252) | ÷ | 2,080,066) |
| Dec 30, 2006 | 8.39% | = | 100 | × | 142,592) | ÷ | 1,699,291) |
| Dec 31, 2005 | 2.67% | = | 100 | × | 49,343) | ÷ | 1,844,704) |
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 indicates significant volatility in net income over the reported period, with notable fluctuations between considerable losses and gains. Initially, net income experienced a substantial increase from 49,343 thousand US dollars in 2005 to 296,252 thousand in 2007. However, it sharply declined to a large loss of -1,854,038 thousand in 2008, followed by another loss of -149,871 thousand in 2009. From 2010 onwards, net income returned to positive values, exhibiting a general upward trend with some variability. The most prominent peak occurred in 2019, reaching 988,979 thousand, followed by some oscillations but maintaining positive values exceeding 1,000,000 thousand by 2024.
Stockholders’ equity shows irregular patterns, initially declining from 1,844,704 thousand in 2005 to 101,968 thousand in 2008, indicating a period of financial distress or write-downs. This was followed by a recovery phase with equity increasing steadily from 2009 through the mid-2010s. However, there is a notable dip in 2016 to 741,770 thousand, suggesting another setback or restructuring event. Subsequently, equity recovered and continued to grow robustly, reaching a peak of 4,673,578 thousand by 2024, which reflects increased retained earnings or capital injections in recent years.
Return on equity (ROE) reflects these trends with extreme negative values in 2008 and 2009, correlating with the substantial net losses and low equity during that time. The negative ROE of -1,818.25% in 2008 and -138.29% in 2009 highlight the severe operational or financial challenges faced. Post-2009, ROE rebounded strongly with positive rates stabilizing mostly above 20%, peaking near 48% in 2019, indicating effective utilization of equity to generate profit. Despite some fluctuations, ROE remained relatively high in the 20-30% range through 2024, suggesting consistent profitability and efficiency in equity usage in the latter years.
Overall, the data reveals a period of significant financial instability around 2008-2009, characterized by large losses and equity erosion, followed by a strong recovery phase with steady income growth, equity strengthening, and improved profitability metrics, indicating improved operational performance and financial health over the long term.
Comparison to Competitors
Cadence Design Systems Inc., ROE, long-term trends, comparison to competitors
| Cadence Design Systems Inc. | Accenture PLC | Adobe Inc. | CrowdStrike Holdings Inc. | Datadog 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 | 22.58% | 25.68% | 39.42% | 3.88% | 6.77% | — | 22.06% | 16.07% | 32.83% | 120.26% | 9.24% | 49.86% | 6.93% | 14.83% | 25.17% | 17.09% |
| Dec 31, 2023 | 30.58% | 26.75% | 32.86% | -12.52% | 2.40% | — | 33.29% | 13.81% | 35.09% | 792.45% | 6.04% | 25.15% | 0.36% | 22.69% | 20.01% | -6.57% |
| Dec 31, 2022 | 30.93% | 31.11% | 33.85% | -22.89% | -3.56% | — | 7.47% | 12.57% | 43.68% | — | -14.57% | -127.14% | 2.48% | 6.46% | 17.85% | 0.65% |
| Dec 31, 2021 | 25.39% | 30.25% | 32.59% | -10.64% | -1.99% | — | 30.38% | 20.89% | 43.15% | 262.43% | -22.71% | -78.63% | 9.81% | 6.22% | 14.31% | -8.62% |
| Dec 31, 2020 | 23.69% | 30.05% | 39.66% | -19.10% | -2.56% | 71.41% | 27.14% | 35.76% | 37.43% | 83.94% | -76.61% | -24.23% | 0.37% | 4.18% | 13.54% | -19.33% |
| Dec 28, 2019 | 47.03% | 33.17% | 28.03% | — | -2.14% | 66.30% | 45.25% | 41.53% | 38.35% | 50.87% | — | -5.16% | 7.11% | 29.45% | 13.04% | -21.36% |
| Dec 29, 2018 | 26.84% | 39.17% | 27.67% | — | — | 54.00% | 51.96% | 51.44% | 20.03% | 8.37% | — | -15.30% | 1.36% | -2.40% | 12.43% | -20.33% |
| Dec 30, 2017 | 20.63% | 38.50% | 20.02% | — | — | 30.07% | 32.70% | 71.71% | 29.29% | 17.33% | — | -28.52% | 2.40% | -25.53% | 4.17% | -35.11% |
| Dec 31, 2016 | 27.38% | 54.42% | 15.74% | — | — | 24.49% | 65.07% | 84.32% | 23.33% | 18.82% | — | -28.60% | -0.95% | -116.76% | 8.35% | -25.52% |
| Dec 31, 2015 | 18.34% | 49.78% | 8.99% | — | — | 19.79% | 92.48% | 15.65% | 15.23% | 20.42% | — | -33.81% | -6.61% | -35.01% | 7.21% | -22.02% |
| Dec 31, 2014 | 11.92% | 51.32% | 3.96% | — | — | 20.87% | 101.30% | 29.47% | 24.59% | 23.37% | — | -48.33% | -7.64% | -41.85% | 8.48% | -14.53% |
| Dec 28, 2013 | 14.21% | 66.16% | 4.31% | — | — | 16.98% | 72.32% | 24.30% | 27.69% | 24.47% | — | -10.74% | -11.67% | -18.70% | 8.89% | -20.12% |
| Dec 29, 2012 | 48.07% | 61.59% | 12.49% | — | — | 19.39% | 88.04% | 28.86% | 25.58% | 22.85% | — | 0.32% | -0.73% | -15.34% | 7.29% | — |
| Dec 31, 2011 | 17.57% | 58.72% | 14.40% | — | — | 15.37% | 78.73% | 24.24% | 40.55% | 21.49% | — | — | 5.05% | — | 10.53% | — |
| Dec 31, 2010 | 45.74% | 62.79% | 14.92% | — | — | 13.57% | 64.36% | 20.35% | 40.63% | 19.92% | — | — | 7.73% | — | 11.29% | — |
| Dec 31, 2009 | -138.29% | 55.08% | 7.90% | — | — | 10.85% | 59.31% | 17.49% | 36.83% | 22.29% | — | — | 6.46% | — | 9.09% | — |
| Dec 31, 2008 | -1,818.25% | 66.59% | 19.77% | — | — | 14.94% | 91.60% | 23.00% | 48.73% | 23.98% | — | — | 4.06% | — | 12.43% | — |
| Dec 29, 2007 | 14.24% | 60.25% | 15.57% | — | — | 18.48% | 36.59% | 21.62% | 45.23% | 25.26% | — | — | 0.17% | — | 9.08% | — |
| Dec 30, 2006 | 8.39% | 51.38% | 9.82% | — | — | 13.44% | 33.30% | 23.99% | 31.42% | 22.52% | — | — | 14.50% | — | 2.13% | — |
| Dec 31, 2005 | 2.67% | 55.42% | 32.34% | — | — | 16.71% | 23.97% | 22.51% | 25.47% | 26.63% | — | — | 5.06% | — | -1.27% | — |
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., ROE, long-term trends, comparison to sector (software & services)
| Cadence Design Systems Inc. | Software & Services | |
|---|---|---|
| Dec 31, 2024 | 22.58% | 28.58% |
| Dec 31, 2023 | 30.58% | 28.49% |
| Dec 31, 2022 | 30.93% | 31.05% |
| Dec 31, 2021 | 25.39% | 36.19% |
| Dec 31, 2020 | 23.69% | 30.24% |
| Dec 28, 2019 | 47.03% | 35.60% |
| Dec 29, 2018 | 26.84% | 20.25% |
| Dec 30, 2017 | 20.63% | 23.84% |
| Dec 31, 2016 | 27.38% | 26.24% |
| Dec 31, 2015 | 18.34% | 23.03% |
| Dec 31, 2014 | 11.92% | 28.07% |
| Dec 28, 2013 | 14.21% | 31.66% |
| Dec 29, 2012 | 48.07% | 32.62% |
| Dec 31, 2011 | 17.57% | 38.74% |
| Dec 31, 2010 | 45.74% | 37.79% |
| Dec 31, 2009 | -138.29% | 35.83% |
| Dec 31, 2008 | -1,818.25% | 43.83% |
| Dec 29, 2007 | 14.24% | 35.38% |
| Dec 30, 2006 | 8.39% | 28.75% |
| Dec 31, 2005 | 2.67% | 24.85% |
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., ROE, long-term trends, comparison to industry (information technology)
| Cadence Design Systems Inc. | Information Technology | |
|---|---|---|
| Dec 31, 2024 | 22.58% | 29.31% |
| Dec 31, 2023 | 30.58% | 31.93% |
| Dec 31, 2022 | 30.93% | 39.07% |
| Dec 31, 2021 | 25.39% | 42.41% |
| Dec 31, 2020 | 23.69% | 35.69% |
| Dec 28, 2019 | 47.03% | 36.61% |
| Dec 29, 2018 | 26.84% | 30.39% |
| Dec 30, 2017 | 20.63% | 23.40% |
| Dec 31, 2016 | 27.38% | 23.36% |
| Dec 31, 2015 | 18.34% | 26.17% |
| Dec 31, 2014 | 11.92% | 25.60% |
| Dec 28, 2013 | 14.21% | 24.89% |
| Dec 29, 2012 | 48.07% | 26.24% |
| Dec 31, 2011 | 17.57% | 29.20% |
| Dec 31, 2010 | 45.74% | 27.87% |
| Dec 31, 2009 | -138.29% | 20.26% |
| Dec 31, 2008 | -1,818.25% | 25.64% |
| Dec 29, 2007 | 14.24% | 23.99% |
| Dec 30, 2006 | 8.39% | 22.71% |
| Dec 31, 2005 | 2.67% | 22.09% |
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).