Cadence Design Systems, Inc. cash flow to debt ratio of 69.70% indicates that the company generates enough cash to cover a substantial portion of its debt. This level indicates very strong financial health.

Cadence Design Systems, Inc.'s free cash flow has increased 41.94% from $1.12B last year to $1.59B, signaling increasing performance

Cadence Design Systems, Inc.'s debt to equity ratio is 0.36, which means that the company's assets are healthy financed, signaling financial stability.

Cadence Design Systems, Inc.'s debt has decreased relative to shareholder equity from 0.55 last year to 0.36 today, signaling strengthened financials

Cadence Design Systems, Inc. has a net cash position, so leverage is healthy.

Cadence Design Systems, Inc.'s interest coverage ratio of 14.37 indicates that earnings with good margin can cover interest payments on company debt

Cadence Design Systems, Inc.'s profit margin has increased (3.80%) in the last year from 22.74% to 23.61%, signaling increasing performance

Cadence Design Systems, Inc.'s short-term assets of $4.67B exceed its short-term liabilities of $1.64B

Cadence Design Systems, Inc.'s return on assets of 11.41% is higher than the 5.00% threshold, indicating efficient asset utilization

Cadence Design Systems, Inc.'s return on equity of 22.88%, is higher than 15.00%, indicating good performance

Cadence Design Systems, Inc.'s operating cash flow exceeds its net income, indicating high-quality earnings backed by actual cash generation

Cadence Design Systems, Inc. had positive net income in 5 out of 5 years, indicating stable and consistent earnings

Cadence Design Systems, Inc. has positive free cash flow, indicating the company generates cash after capital expenditures

Cadence Design Systems, Inc. has a free cash flow yield of 1.74%, which is below the 2.00% threshold, indicating limited cash return relative to market value

Cadence Design Systems, Inc.'s yearly earnings has increased 5.06% since last year from $1.06B to $1.11B, signaling increasing performance

Cadence Design Systems, Inc.'s yearly revenue has increased 14.12% since last year from $4.64B to $5.30B, signaling increasing performance

ROIC 13.29% (Source: FMP key-metrics). At or above the 10% threshold. Score: 2 of 2. The company is generating returns above the upper end of the typical US weighted-average cost of capital range under this definition of invested capital.

Cadence Design Systems, Inc.'s 3-year revenue CAGR of 14.14% is positive, indicating growing revenue over the past 3 years

Cadence Design Systems, Inc. had revenue growth in 5 out of 5 years, indicating consistent revenue performance

Cadence Design Systems, Inc. had positive ROE in 5 out of 5 years, indicating consistent and reliable returns on equity

Cadence Design Systems, Inc. is overvalued relative to its fair value price of 103.92 based on Discounted Cash Flow model

Cadence Design Systems, Inc. has an earnings yield of 1.52%, which is below the 4.00% threshold, indicating the stock may be expensive relative to its earnings

Cadence Design Systems, Inc. is overvalued relative to its fair value price of 49.37 based on EBITDA multiple model

Cadence Design Systems, Inc. has an EV/EBITDA ratio of 48.54x, which exceeds the 20.00x threshold, indicating the stock may be overvalued relative to its operating earnings

Cadence Design Systems, Inc. is overvalued relative to its fair value price of 115.59 based on Earnings Fair Value model

Cadence Design Systems, Inc. has a PEG-ratio over 1 which is considered overvalued

Cadence Design Systems, Inc. has a price-to-book ratio of 13.21x, which exceeds the 5.00x threshold, indicating the stock may be overvalued relative to its book value

Cadence Design Systems, Inc. has a price-to-sales ratio of 15.52x, which exceeds the 8.00x threshold, indicating the stock may be overvalued relative to its revenue