Cadence Design System Inc Financials
Cadence Design System Inc (CDNS) reported $5.3B in revenue for fiscal year 2025, up 14.1% from the prior fiscal year. This page shows its income statement, balance sheet, cash flow statement, and key financial ratios. View 15 years of annual fundamentals and quarterly data, with year-over-year growth rates and compound annual growth rates (CAGR). All figures are derived from SEC filings (10-K and 10-Q reports).
Cadence generates internal cash consistently, but margin compression and balance-sheet expansion are reducing the efficiency of growth.
The earnings-to-cash bridge remains favorable: in FY2025, operating cash flow was$1.73B versus net income of$1.11B , showing that reported profit was converted into cash rather than remaining largely on paper. More importantly, free-cash-flow margin recovered to30.0% from24.1% in FY2024 even as net margin weakened, separating cash-generation capacity from the year's profit compression.
Margin shape points to cost pressure rather than simple scale benefits: operating margin eased from
Liquidity improved materially: the current ratio rose from 1.2x in FY2023 to 2.9x in FY2025, giving current assets substantially more coverage over current liabilities. Yet return on assets fell from
Financial Health Signals
Scored against operating companies for FY2025. Each of the six dimensions is a percentile rank within that peer group; the overall is their average, with missing dimensions counted as zero out of six. A high score means strong standing among peers, not absolute cross-industry strength. How this score is calculated →
Health score ≠ stock price. This rates the quality of Cadence Design System Inc's business: profitability, growth, balance sheet strength. It doesn't tell you whether the stock is a good buy at today's price. Not financial advice. Use it alongside valuation analysis and your own research.
Cadence Design System Inc has an operating margin of 28.2%, meaning the company retains $28 of operating profit per $100 of revenue. This strong profitability earns a score of 95/100, reflecting efficient cost management and pricing power. This is down from 29.1% the prior year.
Cadence Design System Inc's revenue grew 14.1% year-over-year to $5.3B, a solid pace of expansion. This earns a growth score of 73/100.
Cadence Design System Inc has a moderate D/E ratio of 0.85. This balance of debt and equity financing earns a leverage score of 50/100.
With a current ratio of 2.86, Cadence Design System Inc holds $2.86 in current assets for every $1 of short-term obligations. This comfortable liquidity earns a score of 75/100.
Cadence Design System Inc converts 30.0% of revenue into free cash flow ($1.6B). This strong cash generation earns a score of 94/100.
Cadence Design System Inc earns a strong 20.3% return on equity (ROE), meaning it generates $20 of profit for every $100 of shareholders' equity. This efficient capital use earns a returns score of 85/100. This is down from 22.6% the prior year.
Cadence Design System Inc scores 13.61, well above the 2.99 safe threshold. The score is driven primarily by a large market capitalization ($87.9B) relative to total liabilities ($4.7B). This indicates low bankruptcy risk based on profitability, leverage, and asset efficiency.
Distress-screening estimate for non-financial companies. Not computed for banks or insurers, where the Altman model does not apply.
Cadence Design System Inc passes 5 of 7 computable financial strength tests (2 of the nine could not be computed from available data). 3 of 4 profitability signals pass, 1 of 2 leverage/liquidity signals pass, both operating efficiency signals pass.
For every $1 of reported earnings, Cadence Design System Inc generates $1.56 in operating cash flow ($1.7B OCF vs $1.1B net income). This indicates profits are well-supported by actual cash generation, not accounting adjustments.
Cadence Design System Inc earns $12.80 in operating income for every $1 of interest expense ($1.5B vs $116.5M). This wide margin provides strong safety for debt servicing, even if earnings decline temporarily.
Key Financial Metrics
Earnings & Revenue
Cadence Design System Inc generated $5.3B in revenue in fiscal year 2025. This represents an increase of 14.1% from the prior year.
Cadence Design System Inc's EBITDA was $1.7B in fiscal year 2025, measuring earnings before interest, taxes, depreciation, and amortization. This represents an increase of 11.1% from the prior year.
Cadence Design System Inc reported $1.1B in net income in fiscal year 2025. This represents an increase of 5.1% from the prior year.
Cadence Design System Inc earned $4.06 per diluted share (EPS) in fiscal year 2025. This represents an increase of 5.5% from the prior year.
Cash & Balance Sheet
Cadence Design System Inc generated $1.6B in free cash flow in fiscal year 2025, representing cash available after capex. This represents an increase of 41.9% from the prior year.
Cadence Design System Inc held $3.0B in cash as of fiscal year 2025; long-term debt is not reported for that period.
Not reported for fiscal year 2025.
Margins & Returns
Cadence Design System Inc's operating margin was 28.2% in fiscal year 2025, reflecting core business profitability. This is down 0.9 percentage points from the prior year.
Cadence Design System Inc's net profit margin was 20.9% in fiscal year 2025, showing the share of revenue converted to profit. This is down 1.8 percentage points from the prior year.
Cadence Design System Inc's ROE was 20.3% in fiscal year 2025, measuring profit generated per dollar of shareholder equity. This is down 2.3 percentage points from the prior year.
Not reported for fiscal year 2025.
Capital Allocation
Cadence Design System Inc spent $925.0M on share buybacks in fiscal year 2025, returning capital to shareholders by reducing shares outstanding. This represents an increase of 68.2% from the prior year.
Cadence Design System Inc invested $141.9M in capex in fiscal year 2025, funding long-term assets and infrastructure. This represents a decrease of 0.5% from the prior year.
Not reported for fiscal year 2025.
CDNS Income Statement
Figures in USD, abbreviated K (thousand), M (million), B (billion), T (trillion). Negative values carry a minus sign and red type.
| Metric | TTM | FY25 | FY24 | FY23 | FY22 | FY21 | FY20 | FY19 | FY18 | FY17 | FY16 | FY15 | FY14 | FY13 | FY12 | FY11 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue | $5.5B | $5.3B+14.1% | $4.6B+13.5% | $4.1B+14.8% | $3.6B+19.2% | $3.0B+11.4% | $2.7B+14.8% | $2.3B+9.3% | $2.1B+10.0% | $1.9B+7.0% | $1.8B+6.7% | $1.7B+7.7% | $1.6B+8.3% | $1.5B+10.1% | $1.3B+15.4% | $1.1B |
| Cost of Revenue | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | $73.4M+5.4% | $69.7M |
| Gross Profit | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | $1.3B+16.0% | $1.1B |
| SG&A Expenses | $338.5M | $313.4M+14.4% | $274.0M+13.0% | $242.4M+0.1% | $242.1M+28.1% | $189.0M+22.4% | $154.4M+10.5% | $139.8M+4.8% | $133.4M-0.6% | $134.2M+7.3% | $125.1M+13.8% | $110.0M-3.2% | $113.6M-6.3% | $121.3M+8.2% | $112.1M+20.7% | $92.9M |
| Operating Income | $1.6B | $1.5B+10.5% | $1.4B+8.0% | $1.3B+16.5% | $1.1B+37.8% | $779.1M+20.7% | $645.6M+31.3% | $491.8M+24.1% | $396.2M+22.3% | $324.0M+32.3% | $244.9M-14.2% | $285.4M+38.1% | $206.6M+9.3% | $189.0M-10.7% | $211.7M+75.8% | $120.4M |
| Interest Expense | $119.0M | $116.5M+53.3% | $76.0M+110.0% | $36.2M+57.8% | $22.9M+35.1% | $17.0M-18.2% | $20.7M+10.2% | $18.8M-18.6% | $23.1M-9.8% | $25.7M+8.4% | $23.7M-16.4% | $28.3M-17.0% | $34.1M-9.2% | $37.6M+8.2% | $34.7M-19.3% | $43.0M |
| Income Tax | $423.5M | $413.2M+21.4% | $340.3M+41.3% | $240.8M+22.6% | $196.4M+171.0% | $72.5M+72.1% | $42.1M+108.3% | -$510.0M-1766.0% | $30.6M-72.4% | $110.9M+225.7% | $34.1M+124.4% | $15.2M-31.3% | $22.1M+521.3% | -$5.2M+97.9% | -$251.7M-1185.0% | $23.2M |
| Net Income | $1.2B | $1.1B+5.1% | $1.1B+1.4% | $1.0B+22.6% | $849.0M+22.0% | $696.0M+17.8% | $590.6M-40.3% | $989.0M+186.0% | $345.8M+69.4% | $204.1M+0.5% | $203.1M-19.5% | $252.4M+58.9% | $158.9M-3.3% | $164.2M-62.7% | $439.9M+509.1% | $72.2M |
| EPS (Diluted) | — | $4.06+5.5% | $3.85+0.8% | $3.82+23.6% | $3.09+23.6% | $2.50+18.5% | $2.11-40.2% | $3.53+187.0% | $1.23+68.5% | $0.73+4.3% | $0.70-13.6% | $0.81+55.8% | $0.52-7.1% | $0.56-64.3% | $1.57+481.5% | $0.27 |
Not reported in any period shown, so not listed: R&D Expenses.
TTM is the trailing twelve months, Q2 FY2025 through Q1 FY2026, summed from the four most recent quarterly filings. A row marked — cannot be summed at all, because a quarter in the window reports no per-share figure; a row marked N/A could be summed, but a quarter in the window does not report that metric.
CDNS Balance Sheet
Figures in USD, abbreviated K (thousand), M (million), B (billion), T (trillion). Negative values carry a minus sign and red type.
| Metric | FY25 | FY24 | FY23 | FY22 | FY21 | FY20 | FY19 | FY18 | FY17 | FY16 | FY15 | FY14 | FY13 | FY12 | FY11 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Total Assets | $10.2B+13.1% | $9.0B+58.3% | $5.7B+10.4% | $5.1B+17.1% | $4.4B+11.0% | $4.0B+17.7% | $3.4B+36.0% | $2.5B+2.1% | $2.4B+15.3% | $2.1B-10.6% | $2.3B-26.9% | $3.2B+32.2% | $2.4B+6.2% | $2.3B+29.8% | $1.8B |
| Current Assets | $4.7B+16.3% | $4.0B+103.2% | $2.0B+15.8% | $1.7B-0.5% | $1.7B+16.0% | $1.5B+26.4% | $1.2B+22.9% | $951.1M-2.9% | $980.0M+39.6% | $702.0M-27.2% | $964.2M-47.9% | $1.9B+51.6% | $1.2B-12.2% | $1.4B+30.8% | $1.1B |
| Cash & Equivalents | $3.0B+13.5% | $2.6B+162.3% | $1.0B+14.3% | $882.3M-19.0% | $1.1B+17.3% | $928.4M+31.7% | $705.2M+32.2% | $533.3M-22.5% | $688.1M+47.9% | $465.2M-24.6% | $616.7M-33.8% | $932.2M+73.8% | $536.3M-26.2% | $726.4M+20.7% | $601.6M |
| Inventory | $303.5M+17.8% | $257.7M+41.9% | $181.7M+41.9% | $128.0M+10.6% | $115.7M+52.4% | $76.0M+36.1% | $55.8M+98.1% | $28.2M-15.2% | $33.2M-15.9% | $39.5M-30.5% | $56.8M+0.7% | $56.4M+12.3% | $50.2M+38.9% | $36.2M-16.4% | $43.2M |
| Goodwill | $2.7B+15.6% | $2.4B+54.9% | $1.5B+11.8% | $1.4B+48.0% | $928.4M+18.7% | $782.1M+18.2% | $661.9M-0.1% | $662.3M-0.6% | $666.0M+16.3% | $572.8M+3.8% | $551.8M-0.4% | $553.8M+21.2% | $456.9M+95.9% | $233.3M+21.4% | $192.1M |
| Total Liabilities | $4.7B+8.8% | $4.3B+89.9% | $2.3B-5.3% | $2.4B+45.4% | $1.6B+12.9% | $1.5B+16.2% | $1.3B+6.3% | $1.2B-17.4% | $1.4B+5.5% | $1.4B+39.8% | $969.4M-48.3% | $1.9B+47.4% | $1.3B-7.2% | $1.4B+1.6% | $1.4B |
| Current Liabilities | $1.6B+19.4% | $1.4B-13.9% | $1.6B+18.0% | $1.3B+38.8% | $971.2M+21.9% | $796.8M+18.5% | $672.4M-5.2% | $709.0M+10.4% | $642.4M+9.7% | $585.6M+9.2% | $536.3M-61.5% | $1.4B+21.3% | $1.1B-5.7% | $1.2B+19.9% | $1.0B |
| Total Equity | $5.5B+17.1% | $4.7B+37.3% | $3.4B+24.0% | $2.7B+0.2% | $2.7B+9.9% | $2.5B+18.6% | $2.1B+63.2% | $1.3B+30.2% | $989.2M+33.4% | $741.8M-46.1% | $1.4B+3.2% | $1.3B+15.4% | $1.2B+26.3% | $915.2M+122.6% | $411.1M |
| Retained Earnings | $7.1B+18.5% | $6.0B+21.4% | $4.9B+26.7% | $3.9B+27.9% | $3.0B+29.6% | $2.4B+33.4% | $1.8B+128.0% | $772.7M+81.0% | $426.9M+211.9% | $136.9M+285.0% | -$74.0M+77.3% | -$326.4M+32.7% | -$485.3M+25.3% | -$649.5M+40.0% | -$1.1B |
Not reported in any period shown, so not listed: Accounts Receivable, Long-Term Debt.
CDNS Cash Flow Statement
Figures in USD, abbreviated K (thousand), M (million), B (billion), T (trillion). Negative values carry a minus sign and red type.
| Metric | TTM | FY25 | FY24 | FY23 | FY22 | FY21 | FY20 | FY19 | FY18 | FY17 | FY16 | FY15 | FY14 | FY13 | FY12 | FY11 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Operating Cash Flow | $1.6B | $1.7B+37.1% | $1.3B-6.6% | $1.3B+8.6% | $1.2B+12.8% | $1.1B+21.7% | $904.9M+24.0% | $729.6M+20.6% | $604.8M+28.5% | $470.7M+5.8% | $444.9M+17.6% | $378.2M+19.4% | $316.7M-13.8% | $367.6M+16.3% | $316.0M+31.5% | $240.3M |
| Capital Expenditures | $167.6M | $141.9M-0.5% | $142.5M+39.3% | $102.3M-16.9% | $123.2M+88.7% | $65.3M-31.1% | $94.8M+27.1% | $74.6M+21.3% | $61.5M+6.2% | $57.9M+7.8% | $53.7M+19.9% | $44.8M+12.6% | $39.8M-11.4% | $44.9M+24.9% | $36.0M+14.5% | $31.4M |
| Free Cash Flow | $1.4B | $1.6B+41.9% | $1.1B-10.3% | $1.2B+11.5% | $1.1B+8.0% | $1.0B+27.8% | $810.1M+23.7% | $655.0M+20.6% | $543.2M+31.6% | $412.8M+5.5% | $391.2M+17.3% | $333.4M+20.4% | $276.9M-14.2% | $322.7M+15.2% | $280.0M+34.0% | $208.9M |
| Investing Cash Flow | -$2.6B | -$460.5M+45.0% | -$837.1M-103.1% | -$412.2M+44.2% | -$738.6M-152.1% | -$293.0M-0.3% | -$292.2M-176.4% | -$105.7M+39.2% | -$173.8M+9.1% | -$191.2M-14190.6% | $1.4M+103.0% | -$44.5M+77.5% | -$198.0M+53.6% | -$426.9M-112.1% | -$201.2M-256.2% | -$56.5M |
| Financing Cash Flow | -$428.7M | -$949.0M-176.6% | $1.2B+254.2% | -$803.6M-22.3% | -$657.0M-2.1% | -$643.8M-55.0% | -$415.3M+6.4% | -$443.9M+21.8% | -$567.9M-709.6% | -$70.1M+88.2% | -$592.7M+5.4% | -$626.3M-316.7% | $289.0M+348.5% | -$116.3M-834.5% | $15.8M+110.9% | -$144.8M |
| Share Buybacks | $775.0M | $925.0M+68.2% | $550.0M-21.4% | $700.1M-33.3% | $1.1B+71.5% | $612.3M+61.1% | $380.1M+24.1% | $306.1M+22.4% | $250.1M+150.0% | $100.0M-89.6% | $960.3M+188.2% | $333.2M+232.8% | $100.1M | $0 | $0 | $0 |
Not reported in any period shown, so not listed: Dividends Paid.
TTM is the trailing twelve months, Q2 FY2025 through Q1 FY2026, summed from the four most recent quarterly filings. A row marked — cannot be summed at all, because a quarter in the window reports no per-share figure; a row marked N/A could be summed, but a quarter in the window does not report that metric.
CDNS Financial Ratios
Margins and returns are percentages; the remaining ratios are unitless multiples.
| Metric | FY25 | FY24 | FY23 | FY22 | FY21 | FY20 | FY19 | FY18 | FY17 | FY16 | FY15 | FY14 | FY13 | FY12 | FY11 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross Margin | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | 94.5%+0.5pp | 93.9% |
| Operating Margin | 28.2%-0.9pp | 29.1%-1.5pp | 30.6%+0.4pp | 30.1%+4.1pp | 26.1%+2.0pp | 24.1%+3.0pp | 21.1%+2.5pp | 18.5%+1.9pp | 16.7%+3.2pp | 13.5%-3.3pp | 16.8%+3.7pp | 13.1%+0.1pp | 12.9%-3.0pp | 16.0%+5.5pp | 10.5% |
| Net Margin | 20.9%-1.8pp | 22.7%-2.7pp | 25.5%+1.6pp | 23.8%+0.6pp | 23.3%+1.3pp | 22.0%-20.3pp | 42.3%+26.2pp | 16.2%+5.7pp | 10.5%-0.7pp | 11.2%-3.6pp | 14.8%+4.8pp | 10.1%-1.2pp | 11.3%-21.9pp | 33.2%+26.9pp | 6.3% |
| Return on Equity | 20.3%-2.3pp | 22.6%-8.0pp | 30.6%-0.4pp | 30.9%+5.5pp | 25.4%+1.7pp | 23.7%-23.3pp | 47.0%+20.2pp | 26.8%+6.2pp | 20.6%-6.7pp | 27.4%+9.0pp | 18.3%+6.4pp | 11.9%-2.3pp | 14.2%-33.9pp | 48.1%+30.5pp | 17.6% |
| Return on Assets | 10.9%-0.8pp | 11.8%-6.6pp | 18.4%+1.8pp | 16.5%+0.7pp | 15.9%+0.9pp | 14.9%-14.5pp | 29.5%+15.4pp | 14.0%+5.6pp | 8.4%-1.2pp | 9.7%-1.1pp | 10.8%+5.8pp | 5.0%-1.8pp | 6.8%-12.5pp | 19.2%+15.1pp | 4.1% |
| Current Ratio | 2.86-0.1x | 2.93+1.7x | 1.240.0x | 1.27-0.5x | 1.77-0.1x | 1.86+0.1x | 1.74+0.4x | 1.34-0.2x | 1.53+0.3x | 1.20-0.6x | 1.80+0.5x | 1.33+0.3x | 1.06-0.1x | 1.14+0.1x | 1.05 |
| Debt-to-Equity | 0.85-0.1x | 0.92+0.3x | 0.67-0.2x | 0.87+0.3x | 0.600.0x | 0.580.0x | 0.60-0.3x | 0.92-0.5x | 1.45-0.4x | 1.83+1.1x | 0.70-0.7x | 1.41+0.3x | 1.10-0.4x | 1.50-1.8x | 3.28 |
| FCF Margin | 30.0%+5.9pp | 24.1%-6.4pp | 30.5%-0.9pp | 31.4%-3.3pp | 34.7%+4.5pp | 30.2%+2.2pp | 28.0%+2.6pp | 25.4%+4.2pp | 21.3%-0.3pp | 21.5%+2.0pp | 19.6%+2.1pp | 17.5%-4.6pp | 22.1%+1.0pp | 21.1%+2.9pp | 18.2% |
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Where Cadence Design System Inc Ranks
Frequently Asked Questions
What is Cadence Design System Inc's annual revenue?
Cadence Design System Inc (CDNS) reported $5.3B in total revenue for fiscal year 2025. This represents a 14.1% change compared to the previous fiscal year. Revenue measures the total income earned from the company's primary business operations before any expenses are deducted.
How fast is Cadence Design System Inc's revenue growing?
Cadence Design System Inc (CDNS) revenue grew by 14.1% year-over-year, from $4.6B to $5.3B in fiscal year 2025.
Is Cadence Design System Inc profitable?
Yes, Cadence Design System Inc (CDNS) reported a net income of $1.1B in fiscal year 2025, with a net profit margin of 20.9%.
What is Cadence Design System Inc's EBITDA?
Cadence Design System Inc (CDNS) had EBITDA of $1.7B in fiscal year 2025, measuring earnings before interest, taxes, depreciation, and amortization.
What is Cadence Design System Inc's operating margin?
Cadence Design System Inc (CDNS) had an operating margin of 28.2% in fiscal year 2025, reflecting the profitability of core business operations before interest and taxes.
What is Cadence Design System Inc's net profit margin?
Cadence Design System Inc (CDNS) had a net profit margin of 20.9% in fiscal year 2025, representing the share of revenue converted into profit after all expenses.
What is Cadence Design System Inc's return on equity (ROE)?
Cadence Design System Inc (CDNS) has a return on equity of 20.3% for fiscal year 2025, measuring how efficiently the company generates profit from shareholder equity.
What is Cadence Design System Inc's free cash flow?
Cadence Design System Inc (CDNS) generated $1.6B in free cash flow during fiscal year 2025. This represents a 41.9% change compared to the previous fiscal year. Free cash flow represents the cash a company generates after accounting for capital expenditures, and is widely used to assess financial flexibility and shareholder value.
What is Cadence Design System Inc's operating cash flow?
Cadence Design System Inc (CDNS) generated $1.7B in operating cash flow during fiscal year 2025, representing cash generated from core business activities.
What are Cadence Design System Inc's total assets?
Cadence Design System Inc (CDNS) had $10.2B in total assets as of fiscal year 2025, including both current and long-term assets.
What are Cadence Design System Inc's capital expenditures?
Cadence Design System Inc (CDNS) invested $141.9M in capital expenditures during fiscal year 2025, funding long-term assets and infrastructure.
What is Cadence Design System Inc's current ratio?
Cadence Design System Inc (CDNS) had a current ratio of 2.86 as of fiscal year 2025, which is generally considered healthy.
What is Cadence Design System Inc's debt-to-equity ratio?
Cadence Design System Inc (CDNS) had a debt-to-equity ratio of 0.85 as of fiscal year 2025, measuring the company's financial leverage by comparing total debt to shareholder equity.
What is Cadence Design System Inc's return on assets (ROA)?
Cadence Design System Inc (CDNS) had a return on assets of 10.9% for fiscal year 2025, measuring how efficiently the company uses its assets to generate profit.
What is Cadence Design System Inc's Altman Z-Score?
Cadence Design System Inc (CDNS) has an Altman Z-Score of 13.61, placing it in the Safe Zone (low bankruptcy risk). The Z-Score combines five financial ratios (working capital, retained earnings, EBIT, market capitalization, and revenue relative to total assets) to predict the likelihood of bankruptcy. Scores above 2.99 indicate financial safety while scores below 1.81 suggest financial distress. Learn more in our complete guide to financial health indicators.
What is Cadence Design System Inc's Piotroski F-Score?
Cadence Design System Inc (CDNS) has a Piotroski F-Score of 5 out of 7 computable signals; 2 of the nine could not be computed from available data, so the full-scale strength rating is not shown. The F-Score evaluates nine binary signals across profitability (positive ROA, positive cash flow, improving ROA, earnings quality), leverage (decreasing debt, improving liquidity, no share dilution), and operating efficiency (improving gross margin, improving asset turnover). Scores of 7 to 9 indicate strong and improving fundamentals. Learn more in our complete guide to financial health indicators.
Are Cadence Design System Inc's earnings high quality?
Cadence Design System Inc (CDNS) has an earnings quality ratio of 1.56x, considered cash-backed (high quality). This ratio compares operating cash flow to net income. A ratio above 1.0x means the company generates more cash than its reported earnings, indicating sustainable, cash-backed profits. Ratios below 1.0x suggest earnings rely on accounting accruals rather than actual cash generation. Learn more in our complete guide to financial health indicators.
Can Cadence Design System Inc cover its interest payments?
Cadence Design System Inc (CDNS) has an interest coverage ratio of 12.80x, meaning it can comfortably cover its interest obligations. This ratio divides operating income by interest expense. Ratios above 5x indicate strong debt-servicing ability, while ratios below 2x suggest the company may face difficulty meeting interest payments if earnings decline. Learn more in our complete guide to financial health indicators.
How financially healthy is Cadence Design System Inc?
Cadence Design System Inc (CDNS) scores 79 out of 100 on our Financial Health Score, indicating strong standing within its operating companies peer group. The score is a 0-100 composite of six dimensions (Profitability, Growth, Leverage, Liquidity, Cash Flow, Returns), each ranked as a percentile relative to companies in the same scoring family (banks against banks, REITs against REITs, and so on) rather than across all industries. It rates the quality of the business, not whether the stock is fairly priced, and is not financial advice. Learn more in our complete guide to financial health indicators.