Analysis of Geographic Areas
Cadence Design Systems Inc. operates in 6 regions: United States; Other Americas; China; Other Asia; Europe, Middle East and Africa; and Japan.
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- Statement of Comprehensive Income
- Cash Flow Statement
- Common-Size Income Statement
- Common-Size Balance Sheet: Liabilities and Stockholders’ Equity
- Analysis of Solvency Ratios
- Analysis of Short-term (Operating) Activity Ratios
- Net Profit Margin since 2005
- Operating Profit Margin since 2005
- Return on Assets (ROA) since 2005
- Analysis of Debt
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Area Asset Turnover
Cadence Design Systems Inc., asset turnover by geographic area
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| United States | |||||
| Other Americas | |||||
| China | |||||
| Other Asia | |||||
| Europe, Middle East and Africa | |||||
| Japan |
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).
- United States
- The asset turnover ratio in the United States showed a moderate upward trend overall. Starting at 3.98 in 2020, it increased to 4.84 in 2021, followed by slight decreases to 4.54 in 2022 and 4.42 in 2023. However, in 2024, there was a significant increase to 5.24, suggesting improved efficiency in asset utilization in the most recent year.
- Other Americas
- Asset turnover in the Other Americas region fluctuated considerably. It peaked at a high of 43.22 in 2021 from an initial 30.27 in 2020, but then dropped sharply to 7.04 in 2022 and further to 6.39 in 2023. A recovery occurred in 2024, reaching 12.52, but the ratio remained well below the earlier peak, indicating volatility and varying asset efficiency in this region.
- China
- The ratio for China demonstrated a consistent and strong upward trend throughout the period. It was relatively stable between 6.64 and 6.7 in the first two years, but then rose sharply to 10.09 in 2022, followed by significant increases to 22.96 in 2023 and 24.99 in 2024. This reflects a marked improvement in asset turnover, indicating enhanced operational performance or asset utilization in China.
- Other Asia
- Other Asia displayed minor fluctuations with little clear long-term trend. The ratio hovered around 10.35 in 2020 and 10.37 in 2021, declined to 8.59 in 2022, increased to 10.74 in 2023, and slightly declined again to 10.2 in 2024. This suggests relatively stable asset turnover with modest variation in the region.
- Europe, Middle East and Africa
- This region showed a gradual increase in asset turnover from 8.79 in 2020 to 11.6 in 2023, followed by a decline to 9.51 in 2024. The trend indicates some growth in asset efficiency over most of the years, though the dip in the final year suggests possible challenges or reduced turnover efficiency.
- Japan
- Japan exhibited highly volatile asset turnover ratios. Starting at 31.76 in 2020, it surged to 60.99 in 2021, then decreased to 43.8 in 2022. There was a sharp spike to 89.1 in 2023, the highest ratio observed across all regions and years, followed by a decline to 62.21 in 2024. This volatility may indicate significant changes in asset utilization or operational dynamics in Japan, with exceptionally high turnover levels in certain years.
Area Asset Turnover: United States
Cadence Design Systems Inc.; United States; area asset turnover calculation
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | |||||
| Revenue | |||||
| Long-lived assets | |||||
| Area Activity Ratio | |||||
| Area asset turnover1 | |||||
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).
1 2024 Calculation
Area asset turnover = Revenue ÷ Long-lived assets
= ÷ =
- Revenue Trends
- The revenue has shown a consistent upward trajectory over the five-year period. Starting from approximately $1.10 billion in 2020, it increased steadily each year, reaching over $2.15 billion by 2024. This indicates a strong growth pattern, with the most notable increase occurring between 2023 and 2024.
- Long-lived Assets Trends
- Long-lived assets experienced some fluctuations but demonstrated an overall increasing trend. Assets slightly decreased from 2020 to 2021, dropping from about $275.7 million to $267.2 million. However, from 2021 onward, the figures increased progressively, reaching approximately $412.3 million by 2024. This suggests ongoing investment in or acquisition of long-term assets after a brief dip.
- Area Asset Turnover Trends
- The area asset turnover ratio, which measures revenue generated per unit of long-lived assets, shows variability but a general positive trend. The ratio rose from 3.98 in 2020 to 4.84 in 2021, then declined to 4.54 in 2022 and further to 4.42 in 2023. In 2024, it increased significantly to 5.24, the highest level observed in the period. This could indicate improved efficiency in utilizing assets to generate revenue, especially notable in the latest year.
- Overall Insights
- Revenue growth is robust and continuous, reflecting strong market performance or increased demand in the United States segment. Investment in long-lived assets has also increased after an initial decline, supporting potential capacity expansion or modernization. The area asset turnover ratio suggests fluctuations in asset utilization efficiency but culminates in a marked improvement in 2024, enhancing overall operational productivity. These patterns collectively indicate an expanding and increasingly efficient operation in the geographic area over the analyzed years.
Area Asset Turnover: Other Americas
Cadence Design Systems Inc.; Other Americas; area asset turnover calculation
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | |||||
| Revenue | |||||
| Long-lived assets | |||||
| Area Activity Ratio | |||||
| Area asset turnover1 | |||||
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).
1 2024 Calculation
Area asset turnover = Revenue ÷ Long-lived assets
= ÷ =
- Revenue Trends
- The revenue for the Other Americas region shows a generally increasing trend over the five-year period. Starting at $43,652 thousand in 2020, there was a slight decline to $42,141 thousand in 2021. However, revenue then increased significantly in subsequent years, reaching $53,123 thousand in 2022, $65,259 thousand in 2023, and achieving the highest value of $93,101 thousand in 2024. This reflects substantial growth in revenue from 2021 onwards, indicating expanding business activity or market presence in the region.
- Long-Lived Assets
- The value of long-lived assets displays considerable fluctuation. Initially, the assets decreased from $1,442 thousand in 2020 to $975 thousand in 2021. Thereafter, there was a marked increase to $7,548 thousand in 2022 and further growth to $10,219 thousand in 2023, which represents the peak during the observed time frame. In 2024, asset values decreased to $7,437 thousand. The volatility in long-lived assets suggests significant investments or disposals occurring during this period, potentially reflecting capital expenditure cycles or asset revaluations.
- Area Asset Turnover Ratio
- The area asset turnover ratio exhibits significant variability and an irregular trend. It was quite high at 30.27 in 2020 and increased further to 43.22 in 2021, indicating efficient utilization of assets to generate revenue in those years. However, a sharp decline occurred in 2022 and 2023, with ratios dropping to 7.04 and 6.39, respectively. This downturn indicates a reduction in the efficiency with which assets were used to generate revenue during these years. The ratio partially recovered in 2024, rising to 12.52, but remained well below the levels observed in 2020 and 2021. This pattern suggests that although revenue increased, asset growth outpaced revenue growth during 2022 and 2023, reducing asset turnover efficiency, followed by some improvement in 2024.
Area Asset Turnover: China
Cadence Design Systems Inc.; China; area asset turnover calculation
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | |||||
| Revenue | |||||
| Long-lived assets | |||||
| Area Activity Ratio | |||||
| Area asset turnover1 | |||||
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).
1 2024 Calculation
Area asset turnover = Revenue ÷ Long-lived assets
= ÷ =
- Revenue Trends
- Revenue in the China geographic area experienced fluctuations during the five-year period. Initially, revenue decreased slightly from 406,645 thousand US dollars in 2020 to 378,160 thousand in 2021, representing a decline. Subsequently, revenue rose significantly to 521,509 thousand in 2022 and further increased to a peak of 679,538 thousand in 2023. However, in 2024, revenue declined to 573,096 thousand, which, although lower than the previous year, remained above the values recorded in 2020 and 2021.
- Long-lived Assets Trends
- Long-lived assets in this region exhibited a consistent downward trend throughout the period under review. Starting at 61,199 thousand US dollars in 2020, the asset base decreased steadily each year, reaching 22,929 thousand by the end of 2024. The decline was continuous and marked, with the asset value in 2024 representing roughly 37% of the 2020 figure, indicating possible asset disposals, impairments, or shifts in asset management strategy.
- Area Asset Turnover Trends
- The area asset turnover ratio showed a marked increase over time, reflecting improved efficiency in using long-lived assets to generate revenue. Beginning at 6.64 in 2020, the ratio remained relatively stable in 2021 at 6.7, then surged sharply to 10.09 in 2022. This positive momentum amplified in the following years, reaching 22.96 in 2023 and further increasing to 24.99 in 2024. The sharp rise correlates inversely with the decline in long-lived assets and the overall growth in revenue until 2023, suggesting the company is generating more revenue per unit of asset invested in the region.
- Overall Insight
- Overall, the data reveals a strategy or market dynamic characterized by a significant reduction in long-lived assets coupled with generally increasing revenue until 2023, followed by a moderate revenue decline in 2024. The rising area asset turnover ratio indicates improved asset utilization efficiency, with the company generating substantially higher revenue relative to their asset base in China. The drop in revenue in 2024 alongside continued declines in assets and strong turnover ratios may warrant further examination of market conditions or operational adjustments impacting this geographic segment.
Area Asset Turnover: Other Asia
Cadence Design Systems Inc.; Other Asia; area asset turnover calculation
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | |||||
| Revenue | |||||
| Long-lived assets | |||||
| Area Activity Ratio | |||||
| Area asset turnover1 | |||||
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).
1 2024 Calculation
Area asset turnover = Revenue ÷ Long-lived assets
= ÷ =
- Revenue Trends
- Revenue in the "Other Asia" geographic area exhibited a consistent upward trend from December 31, 2020 to December 31, 2024. Starting at approximately 487 million US dollars in 2020, the revenue increased each year, reaching about 856 million US dollars by the end of 2024. This represents a compound growth pattern, with the most significant annual increase observed between 2022 and 2023.
- Long-lived Assets Development
- The value of long-lived assets in the same region showed a general increasing trend over the five-year period. Beginning at approximately 47 million US dollars in 2020, these assets rose to nearly 84 million US dollars by the end of 2024. Notable growth occurred between 2021 and 2022, where a substantial increase is observed. A slight decrease was noted from 2022 to 2023 before the value increased again in 2024, indicating possible asset revaluation or disposal activities.
- Area Asset Turnover Ratio Analysis
- The area asset turnover ratio, a measure of revenue generated per unit of asset, showed some variability across the years. It maintained a stable level of about 10.35 in 2020 and 10.37 in 2021, followed by a decline to 8.59 in 2022. However, it rebounded strongly in 2023 to 10.74, surpassing previous levels, before slightly decreasing to 10.2 in 2024. These fluctuations suggest changes in operational efficiency or asset utilization patterns within this geographic segment.
- Overall Insights
- The data reveals that while revenue and long-lived assets increased over the analyzed period, the efficiency of asset use as represented by the asset turnover ratio did not follow a simple linear pattern. The dip in asset turnover in 2022, coupled with a peak in asset value, could indicate investments in assets that were not immediately translated into proportional revenue gains, followed by improved efficiency in subsequent years. This pattern could be consistent with a strategy of asset expansion aimed at supporting future revenue growth.
Area Asset Turnover: Europe, Middle East and Africa
Cadence Design Systems Inc.; Europe, Middle East and Africa; area asset turnover calculation
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | |||||
| Revenue | |||||
| Long-lived assets | |||||
| Area Activity Ratio | |||||
| Area asset turnover1 | |||||
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).
1 2024 Calculation
Area asset turnover = Revenue ÷ Long-lived assets
= ÷ =
The data for the Europe, Middle East, and Africa geographic area reveals a consistent increase in revenue over the five-year period from December 31, 2020, to December 31, 2024. Revenue grew from US$469,804 thousand in 2020 to US$699,241 thousand in 2024, indicating a positive growth trend with a steady year-on-year increase.
Long-lived assets showed relatively modest growth between 2020 and 2023, increasing from US$53,472 thousand to US$56,449 thousand. However, a notable rise occurred in 2024, where long-lived assets increased significantly to US$73,551 thousand. This sharp increase may suggest investment in fixed assets or infrastructure in the most recent year.
The area asset turnover ratio, which measures revenue generated per unit of long-lived assets, displayed an overall upward trend from 8.79 in 2020, peaking at 11.6 in 2023 before declining to 9.51 in 2024. This pattern suggests improving efficiency in the utilization of long-lived assets through 2023, followed by a decrease in 2024 likely related to the large asset base increase without a proportional revenue jump.
- Revenue
- Consistently increased each year from 2020 to 2024, showing steady growth in the region.
- Long-lived assets
- Remained relatively stable with slight growth from 2020 to 2023, followed by a significant rise in 2024.
- Area asset turnover
- Improved steadily until 2023, indicating better asset utilization efficiency, then decreased in 2024, reflecting the impact of increased assets on turnover ratio.
Area Asset Turnover: Japan
Cadence Design Systems Inc.; Japan; area asset turnover calculation
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | |||||
| Revenue | |||||
| Long-lived assets | |||||
| Area Activity Ratio | |||||
| Area asset turnover1 | |||||
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).
1 2024 Calculation
Area asset turnover = Revenue ÷ Long-lived assets
= ÷ =
- Revenue
- The revenue in the Japan geographic area demonstrates a consistent upward trajectory over the observed period. Starting at 179,165 thousand US dollars in 2020, it increases incrementally each year, reaching 260,204 thousand US dollars in 2024. This represents a substantial growth of approximately 45% over the five-year span. The annual growth appears steady, with notable accelerations in the later years, particularly from 2022 onwards.
- Long-lived assets
- The long-lived assets exhibit a more variable pattern compared to revenue. The value starts at 5,642 thousand US dollars in 2020 and declines sharply to 3,030 thousand US dollars in 2021. After a partial recovery to 4,505 thousand in 2022, the assets decrease again in 2023 to 2,572 thousand, before rising to 4,183 thousand in 2024. This fluctuation may indicate divestitures, asset impairments, or reinvestment cycles occurring within the period.
- Area asset turnover
- The area asset turnover ratio, which measures how efficiently assets are generating revenue, shows considerable volatility. Beginning at 31.76 in 2020, the ratio peaks to 60.99 in 2021, then declines to 43.8 in 2022. It reaches a high of 89.1 in 2023 before falling to 62.21 in 2024. Such fluctuations suggest varying degrees of operational efficiency or changes in asset utilization practices. The highest turnover ratio in 2023 aligns with the peak revenue year prior to 2024, indicating a period of enhanced asset productivity.
- Insights
- Overall, revenue growth in the Japan area is robust and continuous, indicative of expanding market presence or improved sales performance. The inconsistent pattern in long-lived assets may reflect strategic asset management or restructuring activities. Correspondingly, the volatility in the area asset turnover ratio suggests fluctuating efficiency in asset use, which may warrant further investigation to understand underlying operational factors. There is no clear long-term trend in asset levels or turnover efficiency, in contrast to the steady revenue growth.
Revenue
Cadence Design Systems Inc., revenue by geographic area
US$ in thousands
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| United States | |||||
| Other Americas | |||||
| Americas | |||||
| China | |||||
| Other Asia | |||||
| Asia | |||||
| Europe, Middle East and Africa | |||||
| Japan | |||||
| Total |
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).
The revenue data across geographic regions demonstrates diverse growth patterns over the five-year period. Overall, the total revenue exhibits a consistent upward trajectory, increasing from approximately $2.68 billion in 2020 to about $4.64 billion in 2024. This reflects a steady expansion in the company's geographic market presence.
- Americas
- The Americas region shows a robust increase in revenue from $1.14 billion in 2020 to $2.25 billion in 2024. Within this region, the United States consistently contributes the largest portion, with revenue growing significantly each year—from $1.10 billion in 2020 to over $2.15 billion in 2024. "Other Americas" also experiences growth, albeit from a smaller base, rising from approximately $43.7 million in 2020 to $93.1 million in 2024. The combined growth suggests strong market performance, driven primarily by the U.S. market expansion.
- Asia
- Asia’s total revenue increases from about $894 million in 2020 to $1.43 billion in 2024, with fluctuations that merit attention. The "Other Asia" segment shows consistent growth throughout the period, rising from $487 million to $856 million. China’s revenue, however, displays a less consistent pattern, increasing from $406.6 million in 2020 to a peak of $679.5 million in 2023 before declining to $573 million in 2024. This dip in China contrasts with the steady growth in other Asian markets and may indicate regional challenges or market saturation effects.
- Europe, Middle East and Africa (EMEA)
- The EMEA region shows a moderate but steady increase in revenue over the years, growing from $470 million in 2020 to nearly $700 million in 2024. This gradual growth pattern underscores stable demand without major fluctuations or volatility.
- Japan
- Japan demonstrates steady growth from $179 million in 2020 to $260 million in 2024. Although the segment is smaller compared to others, it maintains consistent upward momentum across all years, reflecting increasing market penetration or demand.
In summary, the company realizes broad-based geographic revenue growth, driven notably by the U.S. market within the Americas and a strong performance in "Other Asia." The Asia region as a whole grows, although China’s revenue decrease in the final year indicates possible regional headwinds. The EMEA and Japan segments contribute steady but more modest growth. Overall, the diversification of revenue across regions contributes to the company’s increasing total revenue, highlighting expanding global reach and market adaptation over the analyzed timeframe.
Long-lived assets
Cadence Design Systems Inc., long-lived assets by geographic area
US$ in thousands
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| United States | |||||
| Other Americas | |||||
| Americas | |||||
| China | |||||
| Other Asia | |||||
| Asia | |||||
| Europe, Middle East and Africa | |||||
| Japan | |||||
| Total |
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).
- United States
- The value of long-lived assets in the United States shows a consistent upward trend over the five-year period. Starting at $275,651 thousand in 2020, the amount slightly decreased in 2021 to $267,202 thousand but then increased markedly in the following years, reaching $412,339 thousand by 2024. This reflects significant asset growth in the company's primary market, especially from 2021 onwards.
- Other Americas
- Long-lived assets in the Other Americas category exhibit more volatility. Beginning with a relatively low amount of $1,442 thousand in 2020, there was a decrease in 2021 to $975 thousand, followed by a sharp increase to $7,548 thousand in 2022 and further rising to $10,219 thousand in 2023. However, there is a decline again to $7,437 thousand in 2024. This variability may indicate fluctuating investment or asset revaluation in this region.
- Americas (Total)
- The total long-lived assets for the Americas region, which aggregates the United States and Other Americas, reflect the trends seen in its components. After a slight decrease from $277,093 thousand in 2020 to $268,177 thousand in 2021, the total assets increased significantly in 2022 and continued to rise through 2024, reaching $419,776 thousand. This consistent increase after 2021 suggests overall growth and asset accumulation in the Americas.
- China
- Long-lived assets in China reveal a consistent declining trend across the five years, starting from $61,199 thousand in 2020 and falling steadily to $22,929 thousand in 2024. This decline is quite pronounced, with more than a 60% decrease over the period, indicating potential divestment, asset write-downs, or strategic reduction in asset holdings within this region.
- Other Asia
- Assets classified under Other Asia show a general increasing trajectory. Beginning at $47,073 thousand in 2020, the asset base grew to $83,951 thousand by 2024, although there was a minor decline between 2022 and 2023. Overall, this segment displays positive growth, suggesting expanding asset investments or acquisitions in this area despite some fluctuations.
- Asia (Total)
- The total for Asia combines China and Other Asia figures and demonstrates a more complex pattern. The assets increased from $108,272 thousand in 2020 to $124,996 thousand in 2022, followed by a decrease in 2023 to $100,963 thousand and a slight recovery to $106,880 thousand in 2024. This reflects the substantial impact of the declining Chinese assets partially offset by the growth in Other Asia.
- Europe, Middle East, and Africa (EMEA)
- Assets in EMEA have remained relatively stable, with minor fluctuations. The figures stayed between approximately $53,472 thousand and $56,959 thousand from 2020 through 2023, followed by a notable increase to $73,551 thousand in 2024. This jump at the end of the period signals a strategic increase or investment boost in this geographic segment.
- Japan
- Long-lived assets in Japan exhibit volatility with values ranging from $5,642 thousand in 2020 down to $2,572 thousand in 2023, and then increasing again to $4,183 thousand in 2024. The overall trend reflects fluctuations that could arise from asset disposals, revaluations, or reinvestment activities.
- Total Long-Lived Assets
- The total long-lived assets rose notably from $444,479 thousand in 2020 to $604,390 thousand in 2024. Despite some regional variations and fluctuations, the overall company asset base shows robust expansion over the five years. The growth appears driven primarily by increases in the United States and Other Americas, as well as a late-stage boost in EMEA assets, offsetting declines in China and part of Asia.