Tax

Foreign Rate Differential

Cadence Design Systems Foreign Rate Differential remained flat by 0.0% to -$15.70M in Q4 2024 compared to the prior quarter. Year-over-year, this metric declined by 15.8%, from -$13.55M to -$15.70M. Over 3 years (FY 2021 to FY 2024), Foreign Rate Differential shows a downward trend with a 32.7% CAGR. This increase may warrant attention — for this metric, lower values are generally preferred.

Analysis

StatementIncome Statement
SectionTax
CategoryProfitability
SignalLower is better
VolatilityModerate
First reportedQ1 2013
Last reportedQ4 2024

How to read this metric

A negative differential (benefit) suggests the company benefits from lower-tax international operations, while a positive differential indicates higher tax costs abroad.

Detailed definition

Measures the impact on the effective tax rate caused by the difference between the U.S. statutory tax rate and the tax r...

Peer comparison

Standard disclosure for multinational companies in the tax reconciliation note.

Metric ID: is_tmo_foreign_rate_differential

Historical Data

4 years
 FY'21FY'22FY'23FY'24
Value-$26.89M-$49.95M-$54.21M-$62.80M
YoY Change-85.8%-8.5%-15.8%
Range-$62.80M-$26.89M
CAGR+32.7%
Avg YoY Growth-36.7%
Median YoY Growth-15.8%
Current Streak3+ years decline

Frequently Asked Questions

What is Cadence Design Systems's foreign rate differential?
Cadence Design Systems (CDNS) reported foreign rate differential of -$15.70M in Q4 2024.
How has Cadence Design Systems's foreign rate differential changed year-over-year?
Cadence Design Systems's foreign rate differential decreased by 15.8% year-over-year, from -$13.55M to -$15.70M.
What is the long-term trend for Cadence Design Systems's foreign rate differential?
Over 3 years (2021 to 2024), Cadence Design Systems's foreign rate differential has grown at a 32.7% compound annual growth rate (CAGR), from -$26.89M to -$62.80M.
What does foreign rate differential mean?
The tax impact caused by operating in countries with tax rates different from the U.S. statutory rate.