Cadence Design Systems (NAS:CDNS) EBIT

: $1,085 Mil (TTM As of Mar. 2023)

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Cadence Design Systems's earnings before interest and taxes (EBIT) for the three months ended in Mar. 2023 was $331 Mil. Its earnings before interest and taxes (EBIT) for the trailing twelve months (TTM) ended in Mar. 2023 was $1,085 Mil.

EBIT or Operating Income is linked to Return on Capital for both regular definition and Joel Greenblatt's definition. Cadence Design Systems's annualized ROC % for the quarter that ended in Mar. 2023 was 22.83%. Cadence Design Systems's annualized ROC (Joel Greenblatt) % for the quarter that ended in Mar. 2023 was 289.25%.

EBIT is also linked to Joel Greenblatt's definition of earnings yield. Cadence Design Systems's Earnings Yield (Joel Greenblatt) % for the quarter that ended in Mar. 2023 was 1.80%.

Cadence Design Systems EBIT Historical Data

The historical data trend for Cadence Design Systems's EBIT can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Cadence Design Systems Annual Data

Trend

Dec13

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

EBIT

399.53

497.80

653.50

785.42

1,068.30

Cadence Design Systems Quarterly Data
	Jun18	Sep18	Dec18	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23
EBIT																314.03	276.93	257.74	219.61	330.75

Cadence Design Systems EBIT Calculation

EBIT, sometimes also called Earnings Before Interest and Taxes, is a measure of a firm's profit that includes all expenses except interest and income tax expenses. It is the difference between operating revenues and operating expenses. When a firm does not have non-operating income, then Operating Income is sometimes used as a synonym for EBIT and operating profit.

EBIT for the trailing twelve months (TTM) ended in Mar. 2023 adds up the quarterly data reported by the company within the most recent 12 months, which was $1,085 Mil.

Cadence Design Systems (NAS:CDNS) EBIT Explanation

1. EBIT or Operating Income is linked to Return on Capital for both regular definition and Joel Greenblatt's definition.

Cadence Design Systems's annualized ROC % for the quarter that ended in Mar. 2023 is calculated as:

	ROC % (Q: Mar. 2023 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Dec. 2022 )	+	Invested Capital (Q: Mar. 2023 ))	/ count )
=	1289.852 * ( 1 - 24.79% )	/	( (4275.41	+	4224.321)	/ 2 )
=	970.0976892	/	4249.8655
=	22.83 %

where

	Invested Capital		(Q: Dec. 2022 )
=	Total Assets	-	Accounts Payable & Accrued Expense	-	Excess Cash
=	Total Assets	-	Accounts Payable & Accrued Expense	-	( Cash, Cash Equivalents, Marketable Securities	-	max(0, Total Current Liabilities	-	Total Current Assets	+	Cash, Cash Equivalents, Marketable Securities	))
=	5137.071	-	502.59	-	( 882.325	-	max(0, 1347.696	-	1706.767	+	882.325	))
=	4275.41

	Invested Capital		(Q: Mar. 2023 )
=	Total Assets	-	Accounts Payable & Accrued Expense	-	Excess Cash
=	Total Assets	-	Accounts Payable & Accrued Expense	-	( Cash, Cash Equivalents, Marketable Securities	-	max(0, Total Current Liabilities	-	Total Current Assets	+	Cash, Cash Equivalents, Marketable Securities	))
=	5171.619	-	430.135	-	( 916.963	-	max(0, 1181.381	-	1698.544	+	916.963	))
=	4224.321

Note: The Operating Income data used here is four times the quarterly (Mar. 2023) data.

2. Joel Greenblatt's definition of Return on Capital:

Cadence Design Systems's annualized ROC (Joel Greenblatt) % for the quarter that ended in Mar. 2023 is calculated as:

	ROC (Joel Greenblatt) %		(Q: Mar. 2023 )
=	EBIT	/	Average of (Net fixed Assets	+	Net Working Capital)
=	EBIT	/	Average of (Property, Plant and Equipment	+	Net Working Capital)
			Q: Dec. 2022		Q: Mar. 2023
=	EBIT	/	( ( (Property, Plant and Equipment + Net Working Capital)	+	(Property, Plant and Equipment + Net Working Capital) )	/	count )
=	1322.988	/	( ( (541.83 + max(-595.298, 0))	+	(372.956 + max(-511.069, 0)) )	/	2 )
=	1322.988	/	( ( 541.83	+	372.956 )	/	2 )
=	1322.988	/	457.393
=	289.25 %

where Working Capital is:

	Working Capital		(Q: Dec. 2022 )
=	(Accounts Receivable	+	Total Inventories	+	Other Current Assets)	-	(Accounts Payable & Accrued Expense	+	Defer. Rev.	+	Other Current Liabilities)
=	(314.666	+	128.005	+	209.727)	-	(502.59	+	745.106	+	0)
=	-595.298

	Working Capital		(Q: Mar. 2023 )
=	(Accounts Receivable	+	Total Inventories	+	Other Current Assets)	-	(Accounts Payable & Accrued Expense	+	Defer. Rev.	+	Other Current Liabilities)
=	(346.968	+	127.566	+	165.778)	-	(430.135	+	721.246	+	2.2737367544323E-13)
=	-511.069

When net working capital is negative, 0 is used.

Note: The EBIT data used here is four times the quarterly (Mar. 2023) EBIT data.

3. It is also linked to Joel Greenblatt's definition of Earnings Yield:

Cadence Design Systems's Earnings Yield (Joel Greenblatt) % for today is calculated as:

Earnings Yield (Joel Greenblatt) %	=	EBIT (TTM)	/	Enterprise Value (Q: Mar. 2023 )
	=	1085.015	/	60444.435
	=	1.80 %

Cadence Design Systems EBIT Related Terms

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Cadence Design Systems (NAS:CDNS) Business Description

Industry

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Comparable Companies

Traded in Other Exchanges

CDNS:Mexico CDS:Germany C1DN34:Brazil CDNS:Austria

Address

2655 Seely Avenue, Building 5, San Jose, CA, USA, 95134

Website

https://www.cadence.com

Cadence Design Systems is a provider of electronic design automation software, intellectual property, and system design and analysis products. EDA software automates the chip design process, enhancing design accuracy, productivity, and complexity in a full-flow end-to-end solution. Cadence offers a portfolio of design IP, as well as system design and analysis products, which enable system-level analysis and verification solutions. Cadence's comprehensive portfolio is benefiting from a mutual convergence of semiconductor companies moving up-stack toward systems-like companies, and systems companies moving down-stack toward in-house chip design. The resulting expansion in EDA customers, alongside secular digitalization of various end markets, benefits EDA vendors like Cadence.

Executives

Karna Nisewaner	officer: Corporate VP, General Counsel	2655 SEELY AVENUE, BUILDING 5, SAN JOSE CA 95134
Mary L Krakauer	director	176 SOUTH STREET, HOPKINTON MA 01748
Paul Cunningham	officer: Sr. Vice President	2655 SEELY AVENUE, BUILDING 5, SAN JOSE CA 95134
Julia Liuson	director	2655 SEELY AVENUE, BUILDING 5, SAN JOSE CA 95134
Alinka Flaminia	officer: Sr. VP, Chief Legal Officer	3975 FREEDOM CIRCLE, SANTA CLARA CA 95054
Ita M Brennan	director	5453 GREAT AMERICA PARKWAY, SANTA CLARA CA 95054
Lewis Chew	director	DOLBY LABORATORIES, INC., 1275 MARKET STREET, SAN FRANCISCO CA 94103
Chin-chi Teng	officer: Sr. Vice President	2655 SEELY AVENUE, SAN JOSE CA 95134
John M Wall	officer: Sr. VP & CFO	2655 SEELY AVENUE, SAN JOSE CA 95134
Mary Agnes Wilderotter	director	115 ALPINE TERRACE, OAKLAND CA 94618
Surendra Babu Mandava	officer: Sr. Vice President	47211 LAKEVIEW BLVD, FREMONT CA 94538
Pieter Vorenkamp	officer: Sr. Vice President	2655 SEELY AVE., SAN JOSE CA 95134
Aneel Zaman	officer: Sr. Vice President	2655 SEELY AVENUE, SAN JOSE CA 95134
Mark Adams	director	834 TERRACE DRIVE, LOS ALTOS CA 94024
James D Plummer	director	233 KANSAS STREET, EL SEGUNDO CA 90245