Cadence Design Systems's gross profit for the
three
months ended in Sep. 2021 was $674 Mil. Cadence Design Systems's gross profit for the trailing twelve months (TTM) ended in Sep. 2021 was $2,664 Mil.
Gross Margin % is calculated as gross profit divided by its revenue. Cadence Design Systems's gross profit for the
three
months ended in Sep. 2021 was $674 Mil. Cadence Design Systems's Revenue for the
three
months ended in Sep. 2021 was $751 Mil. Therefore, Cadence Design Systems's Gross Margin % for the quarter that ended in Sep. 2021 was 89.80%.
Cadence Design Systems had a gross margin of 89.80% for the quarter that ended in Sep. 2021 => Durable competitive advantage
During the past 13 years, the highestGross Margin % of Cadence Design Systems was 89.55%. The lowest was 83.03%. And the median was 86.14%.
Cadence Design Systems Gross Profit Historical Data
The historical data trend for Cadence Design Systems's Gross Profit 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
Dec11
Dec12
Dec13
Dec14
Dec15
Dec16
Dec17
Dec18
Dec19
Dec20
Gross Profit
1,559.59
1,705.64
1,879.28
2,069.96
2,377.39
Cadence Design Systems Quarterly Data
Dec16
Mar17
Jun17
Sep17
Dec17
Mar18
Jun18
Sep18
Dec18
Mar19
Jun19
Sep19
Dec19
Mar20
Jun20
Sep20
Dec20
Mar21
Jun21
Sep21
Gross Profit
584.32
686.36
652.07
651.57
674.29
Competitive Comparison
For the Software - Application subindustry, Cadence Design Systems's Gross Profit, along with its competitors' market caps and Gross Profit data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Cadence Design Systems Gross Profit Distribution
For the Software industry and Technology sector, Cadence Design Systems's Gross Profit distribution charts can be found below:
* The bar in red indicates where Cadence Design Systems's Gross Profit falls into.
Cadence Design Systems Gross Profit Calculation
Gross Profit is the different between the sale prices and the cost of buying or producing the goods.
Cadence Design Systems's Gross Profit for the fiscal year that ended in Dec. 2020 is calculated as
Gross Profit for the trailing twelve months (TTM) ended in Sep. 2021 adds up the quarterly data reported by the company within the most recent 12 months, which was $2,664 Mil.
Gross Profit is the numerator in the calculation of Gross Margin.
Cadence Design Systems's Gross Margin % for the quarter that ended in Sep. 2021 is calculated as
* 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.
A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.
Cadence Design Systems (NAS:CDNS) Gross Profit Explanation
Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.
Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %
1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key
Cadence Design Systems had a gross margin of 89.80% for the quarter that ended in Sep. 2021 => Durable competitive advantage
Cadence Design Systems Gross Profit Related Terms
Thank you for viewing the detailed overview of Cadence Design Systems's Gross Profit provided by GuruFocus.com. Please click on the following links to see related term pages.
Cadence Design Systems was founded in 1988 after the merger of ECAD and SDA Systems. Cadence is known as an electronic design automation, or EDA, firm that specializes in developing software, hardware, and intellectual property that automates the design and verification of integrated circuits or larger chip systems. Historically, semiconductor firms have relied on the firm's tools, but there has been a shift toward other nontraditional "systems" users given the development of the Internet of Things, artificial intelligence, autonomous vehicles, and cloud computing. Cadence is headquartered in Silicon Valley, has approximately 8,100 employees worldwide, and was added to the S&P 500 in late 2017.
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