Focused on building reliable datasets, financial models, and research tools for value-minded investors. Committed to turning complex data into practical guidance for value-investing and long-term wealth.
Dr. Charlie Tian is the founder and CEO of GuruFocus.com, a leading global investment research platform established in 2004. With a Ph.D. in physics, Dr. Tian transitioned from science to finance, applying a data-driven, disciplined approach to value investing.
Cadence Design Systems (XSWX:CDNS) Equity-to-Asset Explanation
Equity to Asset ratio can vary greatly across different industries, as they have different capital structure. A company with smaller Equity to Asset ratio (more leveraged) may have higher ROE % because of the leverage.
For banks, the required minimum Equity to Asset ratio by regulation is 5%. Some stronger banks may have Equity to Asset Ratio of more than 10%.
Cadence Design Systems Equity-to-Asset Related Terms
Cadence Design Systems Equity-to-Asset Historical Data
* Premium members only.
The historical data trend for Cadence Design Systems's Equity-to-Asset 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.
XSWX:CDNS vs ADBE, DDOG, SNOW: Equity-to-Asset Comparison
For the Software - Application subindustry, Cadence Design Systems's Equity-to-Asset, along with its competitors' market caps and Equity-to-Asset 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 Equity-to-Asset vs Software Industry
For the Software industry and Technology sector, Cadence Design Systems's Equity-to-Asset distribution charts can be found below:
* The bar in red indicates where Cadence Design Systems's Equity-to-Asset falls into.
Cadence Design Systems Equity-to-Asset Calculation
Equity to Asset ratio measures the ratios of the portion of the asset owned by shareholders out of the total asset. It indicates the leverage of the company, and the amount of debt the company uses in its operation.
Equity to Asset ratio is calculated by dividing total stockholders equity by total asset.
Cadence Design Systems's Equity to Asset Ratio for the fiscal year that ended in Dec. 2025 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.
Cadence Design Systems (XSWX:CDNS) has a Equity-to-Asset of 0.57 as of Jun. 2026. Equity-to-asset ratio equals total company equity divided by total assets. It measures financial leverage. View historical data on Cadence Design Systems and its competitors. This is near median its historical median of 0.55. Over the past decade, Cadence Design Systems' Equity-to-Asset has ranged from 0.35 to 0.64. According to the industry distribution chart, Cadence Design Systems ranks #1371 out of 2892 companies in the Software industry, placing it in the top 47.4%.
Is Cadence Design Systems' Equity-to-Asset too high?
Cadence Design Systems' current Equity-to-Asset of 0.57 is near median its 10-year median of 0.55. Over the past 10 years, this metric has ranged from a low of 0.35 to a high of 0.64. The Software industry median Equity-to-Asset is 0.56. Cadence Design Systems' value of 0.57 is 1.8% above this industry median. Based on the distribution chart, Cadence Design Systems ranks #1371 out of 2892 companies in the Software industry, which is above the industry midpoint. Overall, Cadence Design Systems has a GF Score™ of 99/100, reflecting its overall financial health beyond just this single metric.
How does Cadence Design Systems' Equity-to-Asset compare to ADBE and DDOG?
According to the Software industry distribution chart, Cadence Design Systems ranks #1371 out of 2892 companies for Equity-to-Asset. This puts Cadence Design Systems in the upper half of its industry. The industry median Equity-to-Asset is 0.56. Cadence Design Systems' value of 0.57 is 1.8% above this benchmark. Historically, Cadence Design Systems' own Equity-to-Asset has ranged from 0.35 to 0.64 over the past decade. While the company's 10-year median is 0.55 vs. the industry median of 0.56, 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 Equity-to-Asset for a Software company?
The median Equity-to-Asset among Software companies is 0.56, based on 2,892 companies in the industry. Companies in the top quartile (top 25%) have a Equity-to-Asset significantly above this median, while those in the bottom quartile fall well below. However, Equity-to-Asset should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Cadence Design Systems's current Equity-to-Asset of 0.57 is 1.8% 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 Equity-to-Asset mean?
A high Equity-to-Asset can signal that a stock is expensive relative to its fundamentals. Equity-to-asset ratio equals total company equity divided by total assets. It measures financial leverage. View historical data on Cadence Design Systems and its competitors. For the Software industry, the median Equity-to-Asset is 0.56 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Cadence Design Systems's current Equity-to-Asset is 0.57, which is near median its own 10-year median of 0.55. 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?
Cadence Design Systems (XSWX:CDNS) has a current Equity-to-Asset of 0.57. The stock's GF Value™ is CHF319.95, compared to a current price of CHF265.30 — trading 17.1% below its estimated fair value. The current Equity-to-Asset is 0.57, which is near median its 10-year median of 0.55 and 1.8% above the Software industry median of 0.56. 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 Equity-to-Asset calculated?
Equity-to-Asset is calculated from a company's financial statements. For Cadence Design Systems (XSWX:CDNS), the current Equity-to-Asset is 0.57 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 (XSWX:CDNS) Overvalued in 2026?
Based on GuruFocus' analysis, Cadence Design Systems stock appears to be undervalued.
The current stock price of CHF265.30 is trading 17.1% below its estimated GF Value™ of CHF319.95.
Key valuation signals for XSWX:CDNS:
Equity-to-Asset: 0.57 (near median its 10-year median of 0.55)
GF Value™: CHF319.95 vs. price of CHF265.30 (17.1% below fair value)
Industry Position: 1.8% above the Software median (#1371 of 2892)
No single metric tells the full story. See the XSWX: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
Get the complete analysis for XSWX:CDNS
Equity-to-Asset is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
XSWX:CDNS has been successfully added to your 
