Stock Analysis on Net
Stock Analysis on Net

Cadence Design Systems Inc. (NASDAQ:CDNS)

$24.99

Return on Equity (ROE)
since 2005

Microsoft Excel

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Calculation

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

Microsoft Excel
ROE = 100 × Net income (loss)1 ÷ Stockholders’ equity1
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 equity (ROE) exhibited significant fluctuations over the period from 2005 to 2025. Initial values were relatively modest, followed by a period of substantial volatility, and then a generally increasing trend in later years. A detailed examination reveals distinct phases in the company’s performance.

Early Growth (2005-2007)
From 2005 to 2007, ROE demonstrated a consistent upward trend, increasing from 2.67% to 14.24%. This growth coincided with increasing net income and stockholders’ equity, indicating improving profitability and efficient utilization of shareholder investments. The increase suggests a strengthening financial position during this period.
Period of Significant Loss (2008-2009)
The years 2008 and 2009 were marked by extreme volatility. In 2008, ROE plummeted to -1,818.25%, driven by a substantial net loss and a dramatic decrease in stockholders’ equity. This was followed by another negative ROE of -138.29% in 2009, although the net loss was smaller than in the previous year. The significant decline in equity suggests a major financial disruption during this timeframe.
Recovery and Moderate Growth (2010-2014)
From 2010 to 2014, the company experienced a recovery phase. ROE rebounded significantly, reaching 45.74% in 2010, then fluctuating between 17.57% and 14.21% over the subsequent years. This period was characterized by increasing net income and stockholders’ equity, indicating a return to profitability and stability. However, the ROE values remained somewhat volatile.
Continued Improvement and Peak Performance (2015-2019)
Between 2015 and 2019, ROE generally increased, reaching a peak of 47.03% in 2019. This was driven by substantial growth in both net income and stockholders’ equity. The consistently positive and increasing ROE suggests strong financial performance and effective management of shareholder funds. The year 2019 represents the highest ROE value observed throughout the analyzed period.
Recent Performance (2020-2025)
From 2020 to 2025, ROE remained relatively high, fluctuating between 22.58% and 30.93%. While not reaching the peak of 2019, the values remained consistently positive and above the long-term average. Stockholders’ equity continued to grow, and net income remained substantial, indicating sustained profitability. A slight downward trend is observed in the most recent years, 2024 and 2025, with ROE decreasing to 20.26% and 22.58% respectively.

Overall, the ROE demonstrates a company that has navigated periods of significant financial distress and subsequently achieved substantial recovery and growth. The recent performance indicates a stable and profitable business, although the slight decline in ROE in the final two years warrants further investigation.

Comparison to Competitors

Cadence Design Systems Inc., ROE, 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., ROE, 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., ROE, 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).