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Cadence Design Systems CDNS Return on invested capital

Return on invested capital at other companies

Synopsys logo
SynopsysSNPS
2.5%-16.8pp
Rambus logo
RambusRMBS
18%-1.5pp
Keysight Technologies logo
Keysight TechnologiesKEYS
17.1%+4.6pp
Teradyne, Inc. logo
Teradyne, Inc.TER
32.6%+6.0pp
KLA Corporation logo
KLA CorporationKLAC
46.2%+6.2pp
Credo Technology Group Holding Ltd logo
Credo Technology Group Holding LtdCRDO
64.2%+56.8pp

Other financials

Income statement

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Revenue$1.5B+18.7%
Operating income$431.3M+19.3%
Net income$335.7M+22.7%
EPS (diluted)$1.23+23.0%

Balance sheet

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Cash & equivalents$1.4B-49.4%
Total debt$177.2M
Total equity$6.6B+37.4%
Total assets$12.1B+34.2%

Cash flow

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Operating cash flow$355.8M-27.0%
CapEx$48.8M+112%
Free cash flow$307.0M-33.8%

Valuation

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Market cap$107.46B+10.0%
Enterprise value$106.23B
P/E91.8×+1.4×
P/S19.4×-0.6×

Profitability

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Operating margin28.3%-1.7pp
Net margin21.2%-1.0pp

Returns & leverage

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Return on equity20.7%-5.3pp
Debt / equity
Current ratio1.5×-1.6×

Where this comes from

Calculated from Cadence Design Systems’s reported figures.

Based on trailing twelve months.

The official record: Cadence Design Systems’s 10-Q, filed May 1, 2026, on SEC EDGAR. View the filing →

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Questions, answered.

What is Cadence Design Systems's return on invested capital?
Cadence Design Systems (CDNS) reported return on invested capital of 44.9% in Q4 2025.
How has Cadence Design Systems's return on invested capital changed year-over-year?
Cadence Design Systems's return on invested capital increased by 4.1% year-over-year, from 43.2% to 44.9%.
What does return on invested capital mean?
The after-tax return the business earns on all the capital — debt and equity — invested in it.
How do you interpret return on invested capital?
The cleanest measure of business quality: ROIC sustained above the cost of capital creates value, below it destroys value. Compare against WACC, not against zero.
How does return on invested capital compare across companies?
Highly comparable across companies as a quality screen. Sector-sensitive definitions of invested capital mean banks/insurers are best excluded.