Aureus
AExcellent

Cadence Design Systems, Inc.(CDNS)

A

Financial data as of Dec 31, 2024Declining · Technology

FCF Margin24.1%Free Cash Flow / Revenue
Cash Conversion119.4%Operating CF / Net Income
Free Cash Flow$1.1B
Revenue$4.6B
Net Cash$59.0MCash exceeds debt
Debt / FCF2.3xManageable debt load
Current Ratio2.93Adequate short-term liquidity
YoY FCF Growth-27.8%5 of 5 quarters positive

How This Grade Was Calculated

Base grade from FCF margin, adjusted by financial health factors

BaseB
→
+0.5Healthy FCF margin with manageable debt (24.1%, 2.3x)
→
-1Significant YoY FCF decline (-27.8%)
→
+1Net cash position with strong FCF margin
→
+0.5Highly consistent quarterly FCF
→
FinalA

Analysis Summary

Strengths

  • Exceptional FCF margin (24.1%)
  • Excellent cash conversion (119%)
  • Net cash position ($0.1B)
  • Strong liquidity (current ratio: 2.93)
  • Highly consistent quarterly FCF

Concerns

  • Significant YoY FCF decline (-27.8%)
  • Significant FCF decline (-27.8% YoY)

Financial Breakdown

Key financials compared side by side

Margin Composition

FCF Margin24.1%
Net Margin22.7%
Operating CF Margin27.2%
CapEx Ratio3.1%

Balance Sheet Health

Debt, liquidity, and leverage snapshot

Net Cash$59.0MCash exceeds debt
Debt / FCF2.3xManageable debt load
Current Ratio2.93Strong liquidity
Debt / Equity0.55Low leverage

Quarterly FCF Trend

-27.8% YoYDeclining (-27.8%)

Free cash flow per quarter

Sector Comparison — Technology

FCF Margin ranked against sector peers

View all →

Detailed Metrics

Company NameCadence Design Systems, Inc.
SectorTechnology
Free Cash Flow$1.1B
Revenue$4.6B
Net Income$1.1B
Operating Cash Flow$1.3B
Capital Expenditure$142.5M
FCF Margin24.1%
Cash Conversion Rate119.4%
Net Margin22.7%
Total Debt$2.6B
Total Cash$2.6B
Net Cash$59.0M
Current Ratio2.93
Debt / Equity0.55
Debt / FCF2.3x
YoY FCF Growth-27.8%
Positive Quarters5 of 5
Trend DirectionDeclining
Report DateDec 31, 2024
GradeA
Data SourceYahoo Finance