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Cadence Design Systems has a Cash Ratio of 0.78. It indicates that there are more current liabilities than Cash, Cash Equivalents, Marketable Securities, and the company does not have sufficient cash on hand to pay off its short-term debt.
The historical rank and industry rank for Cadence Design Systems's Cash Ratio or its related term are showing as below:
MEX:CDNS'
s Cash Ratio Range Over the Past 10 Years
Min: 0.65 Med: 1 Max: 2.14
Current: 0.78
During the past 13 years, Cadence Design Systems's highest Cash Ratio was 2.14. The lowest was 0.65. And the median was 1.00.
MEX:CDNS's Cash Ratio is ranked better than 50.32% of 2820
companies
in the Software industry
Industry Median: 0.775
vs MEX:CDNS: 0.78
Cadence Design Systems (MEX:CDNS) Cash Ratio Explanation
The cash ratio is more conservative than other liquidity ratios, such as Quick Ratio and Current Ratio, because it only considers a company's most liquid resources. The numerator of cash ratio only considers Cash, Cash Equivalents and marketable securities. Other current assets, such as accounts receivable and inventories, are not included. The rationale is that these assets may require time to be transformed into cash, and the amount of money received is also uncertain.
The cash ratio shows a company’s ability to pay all current liabilities immediately without selling or liquidating other assets. Generally speaking, a higher cash ratio suggests the company has a stronger ability to cover its short-term debt. However, a high cash ratio could also indicate inefficient management: the company is inefficient in making full utilization of cash to invest protential profitable project. It may also suggest that the company is not confident about future profitability.
In general, the higher the cash ratio, the better the company's liquidity position.
* 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.
MEX:CDNS vs ADBE, DDOG, SNOW: Cash Ratio Comparison
For the Software - Application subindustry, Cadence Design Systems's Cash Ratio, along with its competitors' market caps and Cash Ratio 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 Cash Ratio vs Software Industry
For the Software industry and Technology sector, Cadence Design Systems's Cash Ratio distribution charts can be found below:
* The bar in red indicates where Cadence Design Systems's Cash Ratio falls into.
* 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.
Cadence Design Systems (MEX:CDNS) has a Cash Ratio of 0.78 as of Jun. 2026. Cashflow ratio is the ratio of Cash, Cash Equivalents, Marketable Securities to current liabilities. View historical data on Cadence Design Systems and its competitors. This is 22% below median its historical median of 1.00. Over the past decade, Cadence Design Systems' Cash Ratio has ranged from 0.65 to 2.14. According to the industry distribution chart, Cadence Design Systems ranks #1401 out of 2820 companies in the Software industry, placing it in the top 49.7%.
Is Cadence Design Systems' Cash Ratio too high?
Cadence Design Systems' current Cash Ratio of 0.78 is 22% below median its 10-year median of 1.00. Over the past 10 years, this metric has ranged from a low of 0.65 to a high of 2.14. The Software industry median Cash Ratio is 0.78. Cadence Design Systems' value of 0.78 is 0.6% above this industry median. Based on the distribution chart, Cadence Design Systems ranks #1401 out of 2820 companies in the Software industry, which is above the industry midpoint. Overall, Cadence Design Systems has a GF Score™ of 99/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Cadence Design Systems' Cash Ratio compare to ADBE and DDOG?
According to the Software industry distribution chart, Cadence Design Systems ranks #1401 out of 2820 companies for Cash Ratio. This puts Cadence Design Systems in the upper half of its industry. The industry median Cash Ratio is 0.78. Cadence Design Systems' value of 0.78 is 0.6% above this benchmark. Historically, Cadence Design Systems' own Cash Ratio has ranged from 0.65 to 2.14 over the past decade. While the company's 10-year median is 1.00 vs. the industry median of 0.78, Cadence Design Systems has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Cash Ratio for a Software company?
The median Cash Ratio among Software companies is 0.78, based on 2,820 companies in the industry. Companies in the top quartile (top 25%) have a Cash Ratio significantly above this median, while those in the bottom quartile fall well below. However, Cash Ratio should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Cadence Design Systems's current Cash Ratio of 0.78 is 0.6% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Cash Ratio mean?
A high Cash Ratio can signal that a stock is expensive relative to its fundamentals. Cashflow ratio is the ratio of Cash, Cash Equivalents, Marketable Securities to current liabilities. View historical data on Cadence Design Systems and its competitors. For the Software industry, the median Cash Ratio is 0.78 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Cadence Design Systems's current Cash Ratio is 0.78, which is 22% below median its own 10-year median of 1.00. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Cadence Design Systems stock overvalued right now?
Based on GuruFocus' analysis, Cadence Design Systems (MEX:CDNS) is currently considered Modestly Undervalued. The stock's GF Value™ is MXN6,856.02, compared to a current price of MXN5,860.00 — trading 14.5% below its estimated fair value. The current Cash Ratio is 0.78, which is 22% below median its 10-year median of 1.00 and 0.6% above the Software industry median of 0.78. Cadence Design Systems' overall GF Score™ is 99/100 with 2 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Cash Ratio calculated?
Cash Ratio is calculated from a company's financial statements. For Cadence Design Systems (MEX:CDNS), the current Cash Ratio is 0.78 as of Jun. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Cadence Design Systems (MEX:CDNS) Overvalued in 2026?
Based on GuruFocus' analysis, Cadence Design Systems stock appears to be undervalued.
The current stock price of MXN5,860.00 is trading 14.5% below its estimated GF Value™ of MXN6,856.02.
GuruFocus considers Cadence Design Systems to be Modestly Undervalued.
Key valuation signals for MEX:CDNS:
Cash Ratio: 0.78 (22% below median its 10-year median of 1.00)
GF Value™: MXN6,856.02 vs. price of MXN5,860.00 (14.5% below fair value)
Industry Position: 0.6% above the Software median (#1401 of 2820)
No single metric tells the full story. See the MEX:CDNS stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Cadence Design Systems is a provider of electronic design automation software, intellectual property, and system design and analysis products. EDA software automates and aids in 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 enables system-level analysis and verification solutions.
99GF Score
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