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Cadence Design Systems Interest Coverage

: 46.19 (As of Sep. 2021)
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Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income by its Interest Expense. Cadence Design Systems's Operating Income for the three months ended in Sep. 2021 was $194 Mil. Cadence Design Systems's Interest Expense for the three months ended in Sep. 2021 was $-4 Mil. Cadence Design Systems's interest coverage for the quarter that ended in Sep. 2021 was 46.19. The higher the ratio, the stronger the company's financial strength is.

The historical rank and industry rank for Cadence Design Systems's Interest Coverage or its related term are showing as below:

NAS:CDNS' s Interest Coverage Range Over the Past 10 Years
Min: 2.81   Med: 11.16   Max: 44.2
Current: 44.2

2.81
44.2

NAS:CDNS's Interest Coverage is ranked lower than
67% of the 236 Companies
in the Software industry.

( Industry Median: 90.30 vs. NAS:CDNS: 44.20 )

Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.


Cadence Design Systems Interest Coverage Historical Data

The historical data trend for Cadence Design Systems's Interest Coverage 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
Interest Coverage
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 12.08 12.99 17.60 26.58 31.56

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
Interest Coverage Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 31.79 40.12 48.30 42.87 46.19

Competitive Comparison

For the Software - Application subindustry, Cadence Design Systems's Interest Coverage, along with its competitors' market caps and Interest Coverage 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 Interest Coverage Distribution

For the Software industry and Technology sector, Cadence Design Systems's Interest Coverage distribution charts can be found below:

* The bar in red indicates where Cadence Design Systems's Interest Coverage falls into.



Cadence Design Systems Interest Coverage Calculation

Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:

If Interest Expense is negative and Operating Income is positive, then

Interest Coverage=-1* Operating Income /Interest Expense

Else if Interest Expense is negative and Operating Income is negative, then

The company did not have earnings to cover the interest expense.

Else if Interest Expense is 0 and Long-Term Debt & Capital Lease Obligation is 0, then

The company had no debt.


Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.

Cadence Design Systems's Interest Coverage for the fiscal year that ended in Dec. 2020 is calculated as

Here, for the fiscal year that ended in Dec. 2020, Cadence Design Systems's Interest Expense was $-21 Mil. Its Operating Income was $655 Mil. And its Long-Term Debt & Capital Lease Obligation was $461 Mil.

Interest Coverage=-1* Operating Income (A: Dec. 2020 )/Interest Expense (A: Dec. 2020 )
=-1*654.767/-20.749
=31.56

Cadence Design Systems's Interest Coverage for the quarter that ended in Sep. 2021 is calculated as

Here, for the three months ended in Sep. 2021, Cadence Design Systems's Interest Expense was $-4 Mil. Its Operating Income was $194 Mil. And its Long-Term Debt & Capital Lease Obligation was $347 Mil.

Interest Coverage=-1* Operating Income (Q: Sep. 2021 )/Interest Expense (Q: Sep. 2021 )
=-1*193.797/-4.196
=46.19

* 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.

The higher the ratio, the stronger the company's Financial Strength is.


Cadence Design Systems  (NAS:CDNS) Interest Coverage Explanation

Ben Graham requires that a company has a minimum interest coverage of 5 with the companies he invested. If the interest coverage is less than 2, the company is burdened by debt. Any business slow or recession may drag the company into a situation where it cannot pay the interest on its debt.

Interest Coverage is an important factor when GuruFocus ranks a company's overage Financial Strength .


Cadence Design Systems Interest Coverage Related Terms

Thank you for viewing the detailed overview of Cadence Design Systems's Interest Coverage provided by GuruFocus.com. Please click on the following links to see related term pages.


Cadence Design Systems Business Description

Cadence Design Systems logo
Industry
Technology » Software NAICS : 511210 SIC : 7372
Traded in Other Exchanges
Address
2655 Seely Avenue, Building 5, San Jose, CA, USA, 95134
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.
Executives
Teng Chin-chi officer: Sr. Vice President 2655 SEELY AVENUE SAN JOSE CA 95134
Tan Lip Bu director, officer: CEO ONE CALIFORNIA STREET 28TH FLOOR SAN FRANCISCO CA 94111
Beckley Thomas P officer: Sr. Vice President 2655 SEELY AVENUE SAN JOSE CA 95134
Wall John M officer: Sr. VP & CFO 2655 SEELY AVENUE SAN JOSE CA 95134
Mandava Surendra Babu officer: Sr. Vice President 47211 LAKEVIEW BLVD FREMONT CA 94538
Devgan Anirudh officer: President 2655 SEELY AVENUE SAN JOSE CA 95134
Zaman Aneel officer: Sr. Vice President 2655 SEELY AVENUE SAN JOSE CA 95134
Bostrom Susan L director PUBLIC "-//W3C//DTD HTML 4.0 Transitional//EN"> Ownership Information: BOSTROM SUSAN L a.header:link {color: #3b4fae; font-weight: bold; text-decoration: underline;} a.header:visited {color: #3b4fae; font-weight: bold; text-decoration: underline;} a.header:hover {color: #191970;}
Flaminia Alinka officer: Sr. VP, Chief Legal Officer 3975 FREEDOM CIRCLE SANTA CLARA CA 95054
Siboni Roger S director 1900 SOUTH NORFOLK STREET SAN MATEO CA 94403
Cowie James J officer: Sr. VP, General Counsel 2655 SEELY AVENUE BLDG. 5 SAN JOSE CA 95134
Chew Lewis director DOLBY LABORATORIES, INC. 1275 MARKET STREET SAN FRANCISCO CA 94103
Brennan Ita M director 5453 GREAT AMERICA PARKWAY SANTA CLARA CA 95054
Adams Mark director 834 TERRACE DRIVE LOS ALTOS CA 94024
Wilderotter Mary Agnes director 115 ALPINE TERRACE OAKLAND CA 94618

Cadence Design Systems Headlines

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