Stock Analysis on Net

Cadence Design Systems Inc. (NASDAQ:CDNS)

Analysis of Long-term (Investment) Activity Ratios

Microsoft Excel

Long-term Activity Ratios (Summary)

Cadence Design Systems Inc., long-term (investment) activity ratios

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 28, 2019
Net fixed asset turnover 10.14 9.59 9.77 8.62 8.47
Net fixed asset turnover (including operating lease, right-of-use asset) 7.38 6.57 6.85 6.04 6.21
Total asset turnover 0.72 0.69 0.68 0.68 0.70
Equity turnover 1.20 1.30 1.09 1.08 1.11

Based on: 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).

Long-term activity ratio Description The company
Net fixed asset turnover An activity ratio calculated as total revenue divided by net fixed assets. Cadence Design Systems Inc. net fixed asset turnover ratio deteriorated from 2021 to 2022 but then improved from 2022 to 2023 exceeding 2021 level.
Net fixed asset turnover (including operating lease, right-of-use asset) An activity ratio calculated as total revenue divided by net fixed assets (including operating lease, right-of-use asset). Cadence Design Systems Inc. net fixed asset turnover ratio (with operating lease, right-of-use asset) deteriorated from 2021 to 2022 but then improved from 2022 to 2023 exceeding 2021 level.
Total asset turnover An activity ratio calculated as total revenue divided by total assets. Cadence Design Systems Inc. total asset turnover ratio improved from 2021 to 2022 and from 2022 to 2023.
Equity turnover An activity ratio calculated as total revenue divided by shareholders’ equity. Cadence Design Systems Inc. equity turnover ratio improved from 2021 to 2022 but then slightly deteriorated from 2022 to 2023.

Net Fixed Asset Turnover

Cadence Design Systems Inc., net fixed asset turnover calculation, comparison to benchmarks

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 28, 2019
Selected Financial Data (US$ in thousands)
Revenue 4,089,986 3,561,718 2,988,244 2,682,891 2,336,319
Property, plant and equipment, net 403,213 371,451 305,911 311,125 275,855
Long-term Activity Ratio
Net fixed asset turnover1 10.14 9.59 9.77 8.62 8.47
Benchmarks
Net Fixed Asset Turnover, Competitors2
Accenture PLC 41.90 37.12 30.83 28.68 31.06
Adobe Inc. 9.56 9.23 9.44 8.48 8.64
Autodesk Inc. 34.76 26.99 19.66 20.25 17.17
CrowdStrike Holdings Inc. 4.55 5.57 5.24 3.54
International Business Machines Corp. 11.25 11.35 10.07 7.33 7.71
Intuit Inc. 14.83 14.33 12.35 10.46 8.70
Microsoft Corp. 2.22 2.66 2.81 3.24 3.45
Oracle Corp. 2.93 4.37 5.74 6.26 6.32
Palo Alto Networks Inc. 19.44 15.38 13.37 9.79 9.80
Salesforce Inc. 8.47 9.41 8.64 7.20 6.48
ServiceNow Inc. 6.61 6.88 7.70 6.85 7.39
Synopsys Inc. 10.48 10.51 8.90 7.62 7.82
Net Fixed Asset Turnover, Sector
Software & Services 3.75 4.50 4.74 5.18 5.54
Net Fixed Asset Turnover, Industry
Information Technology 3.48 4.10 4.41 4.21 4.26

Based on: 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).

1 2023 Calculation
Net fixed asset turnover = Revenue ÷ Property, plant and equipment, net
= 4,089,986 ÷ 403,213 = 10.14

2 Click competitor name to see calculations.

Long-term activity ratio Description The company
Net fixed asset turnover An activity ratio calculated as total revenue divided by net fixed assets. Cadence Design Systems Inc. net fixed asset turnover ratio deteriorated from 2021 to 2022 but then improved from 2022 to 2023 exceeding 2021 level.

Net Fixed Asset Turnover (including Operating Lease, Right-of-Use Asset)

Cadence Design Systems Inc., net fixed asset turnover (including operating lease, right-of-use asset) calculation, comparison to benchmarks

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 28, 2019
Selected Financial Data (US$ in thousands)
Revenue 4,089,986 3,561,718 2,988,244 2,682,891 2,336,319
 
Property, plant and equipment, net 403,213 371,451 305,911 311,125 275,855
ROU operating lease assets 150,797 170,379 130,124 133,354 100,343
Property, plant and equipment, net (including operating lease, right-of-use asset) 554,010 541,830 436,035 444,479 376,198
Long-term Activity Ratio
Net fixed asset turnover (including operating lease, right-of-use asset)1 7.38 6.57 6.85 6.04 6.21
Benchmarks
Net Fixed Asset Turnover (including Operating Lease, Right-of-Use Asset), Competitors2
Accenture PLC 15.38 13.17 10.48 9.37 31.06
Adobe Inc. 8.13 7.61 7.46 6.42 8.64
Autodesk Inc. 12.87 9.39 6.22 5.45 17.17
CrowdStrike Holdings Inc. 4.21 4.97 4.30 3.54
International Business Machines Corp. 7.09 7.37 6.43 5.00 5.14
Intuit Inc. 9.99 8.86 8.30 8.00 8.70
Microsoft Corp. 1.93 2.26 2.37 2.70 2.87
Oracle Corp. 2.31 3.21 4.20 4.74 6.32
Palo Alto Networks Inc. 11.16 9.17 7.32 5.62 9.80
Salesforce Inc. 4.76 4.65 3.75 3.16 6.48
ServiceNow Inc. 4.33 4.18 4.34 4.06 3.98
Synopsys Inc. 5.19 4.87 4.35 3.88 7.82
Net Fixed Asset Turnover (including Operating Lease, Right-of-Use Asset), Sector
Software & Services 3.03 3.50 3.59 3.83 4.56
Net Fixed Asset Turnover (including Operating Lease, Right-of-Use Asset), Industry
Information Technology 3.06 3.56 3.76 3.58 3.98

Based on: 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).

1 2023 Calculation
Net fixed asset turnover (including operating lease, right-of-use asset) = Revenue ÷ Property, plant and equipment, net (including operating lease, right-of-use asset)
= 4,089,986 ÷ 554,010 = 7.38

2 Click competitor name to see calculations.

Long-term activity ratio Description The company
Net fixed asset turnover (including operating lease, right-of-use asset) An activity ratio calculated as total revenue divided by net fixed assets (including operating lease, right-of-use asset). Cadence Design Systems Inc. net fixed asset turnover ratio (with operating lease, right-of-use asset) deteriorated from 2021 to 2022 but then improved from 2022 to 2023 exceeding 2021 level.

Total Asset Turnover

Cadence Design Systems Inc., total asset turnover calculation, comparison to benchmarks

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 28, 2019
Selected Financial Data (US$ in thousands)
Revenue 4,089,986 3,561,718 2,988,244 2,682,891 2,336,319
Total assets 5,669,491 5,137,071 4,386,299 3,950,785 3,357,225
Long-term Activity Ratio
Total asset turnover1 0.72 0.69 0.68 0.68 0.70
Benchmarks
Total Asset Turnover, Competitors2
Accenture PLC 1.25 1.30 1.17 1.20 1.45
Adobe Inc. 0.65 0.65 0.58 0.53 0.54
Autodesk Inc. 0.53 0.51 0.52 0.53 0.54
CrowdStrike Holdings Inc. 0.45 0.40 0.32 0.34
International Business Machines Corp. 0.46 0.48 0.43 0.47 0.51
Intuit Inc. 0.52 0.46 0.62 0.70 1.08
Microsoft Corp. 0.51 0.54 0.50 0.47 0.44
Oracle Corp. 0.37 0.39 0.31 0.34 0.36
Palo Alto Networks Inc. 0.48 0.45 0.42 0.38 0.44
Salesforce Inc. 0.32 0.28 0.32 0.31 0.43
ServiceNow Inc. 0.52 0.54 0.55 0.52 0.57
Synopsys Inc. 0.57 0.54 0.48 0.46 0.52
Total Asset Turnover, Sector
Software & Services 0.51 0.53 0.49 0.48 0.50
Total Asset Turnover, Industry
Information Technology 0.59 0.62 0.61 0.57 0.57

Based on: 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).

1 2023 Calculation
Total asset turnover = Revenue ÷ Total assets
= 4,089,986 ÷ 5,669,491 = 0.72

2 Click competitor name to see calculations.

Long-term activity ratio Description The company
Total asset turnover An activity ratio calculated as total revenue divided by total assets. Cadence Design Systems Inc. total asset turnover ratio improved from 2021 to 2022 and from 2022 to 2023.

Equity Turnover

Cadence Design Systems Inc., equity turnover calculation, comparison to benchmarks

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 28, 2019
Selected Financial Data (US$ in thousands)
Revenue 4,089,986 3,561,718 2,988,244 2,682,891 2,336,319
Stockholders’ equity 3,404,271 2,745,113 2,740,675 2,493,018 2,102,894
Long-term Activity Ratio
Equity turnover1 1.20 1.30 1.09 1.08 1.11
Benchmarks
Equity Turnover, Competitors2
Accenture PLC 2.50 2.79 2.59 2.61 3.00
Adobe Inc. 1.18 1.25 1.07 0.97 1.06
Autodesk Inc. 4.37 5.17 3.93
CrowdStrike Holdings Inc. 1.53 1.42 1.00 0.65
International Business Machines Corp. 2.75 2.76 3.03 3.57 3.70
Intuit Inc. 0.83 0.77 0.98 1.50 1.81
Microsoft Corp. 1.03 1.19 1.18 1.21 1.23
Oracle Corp. 46.56 7.73 3.24 1.81
Palo Alto Networks Inc. 3.94 26.20 6.71 3.09 1.83
Salesforce Inc. 0.54 0.46 0.51 0.50 0.85
ServiceNow Inc. 1.18 1.44 1.60 1.59 1.63
Synopsys Inc. 0.95 0.92 0.79 0.75 0.82
Equity Turnover, Sector
Software & Services 1.32 1.45 1.45 1.53 1.67
Equity Turnover, Industry
Information Technology 1.43 1.59 1.65 1.64 1.64

Based on: 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).

1 2023 Calculation
Equity turnover = Revenue ÷ Stockholders’ equity
= 4,089,986 ÷ 3,404,271 = 1.20

2 Click competitor name to see calculations.

Long-term activity ratio Description The company
Equity turnover An activity ratio calculated as total revenue divided by shareholders’ equity. Cadence Design Systems Inc. equity turnover ratio improved from 2021 to 2022 but then slightly deteriorated from 2022 to 2023.