Cadence Design SystemsXSWX:CDNS 99 Return-on-Tangible-Asset is 22.37% as of Mar. 2026, which is 2% above its 10-year median of 22.03. GuruFocus rates XSWX:CDNS with a GF Score™ of 99/100 and a GF Value™ of CHF314.60. The stock has 4 warning signs investors should review. Among 2,883 Software companies, Cadence Design Systems ranks better than 90.7% on this metric.
Return-on-Tangible-Asset is calculated as Net Income divided by its average total tangible assets. Total tangible assets equals to Total Assets minus Intangible Assets. Cadence Design Systems's annualizedNet Income for the quarter that ended in Mar. 2026 was CHF1,057 Mil. Cadence Design Systems's average total tangible assets for the quarter that ended in Mar. 2026 was CHF4,725 Mil. Therefore, Cadence Design Systems's annualized Return-on-Tangible-Asset for the quarter that ended in Mar. 2026 was 22.37%.
The historical rank and industry rank for Cadence Design Systems's Return-on-Tangible-Asset or its related term are showing as below:
XSWX:CDNS'
s Return-on-Tangible-Asset Range Over the Past 10 Years
Min: 14.7 Med: 22.03 Max: 48.2
Current: 19.19
During the past 13 years, Cadence Design Systems's highest Return-on-Tangible-Asset was 48.20%. The lowest was 14.70%. And the median was 22.03%.
XSWX:CDNS's Return-on-Tangible-Asset is ranked better than 90.7% of 2883
companies
in the Software industry
Industry Median: 2.02
vs XSWX:CDNS: 19.19
Cadence Design Systems (XSWX:CDNS) Return-on-Tangible-Asset Explanation
Return-on-Tangible-Asset measures the rate of return on the average total tangible assets (total assets minus intangible assets). Tangible means physical in nature. Intangible Assets are assets that are not physical in nature, and typically "derive their value from legal or intellectual rights." Return-on-Tangible-Asset measures a firm's efficiency at generating profits from its tangible assets. It shows how well a company uses what it has to generate earnings. Return-on-Tangible-Assets can vary drastically across industries. Therefore, Return-on-Tangible-Asset should not be used to compare companies in different industries.
Be Aware
Like ROE and ROA, Return-on-Tangible-Asset is calculated with only 12 months data. Fluctuations in the companys earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective. Return-on-Tangible-Asset can be affected by events such as stock buyback or issuance, and by a companys tax rate and its interest payment. Return-on-Tangible-Asset may not reflect the true earning power of the assets. A more accurate measurement is ROC % (ROC).
Many analysts argue the higher return the better. Buffett states that really high Return-on-Tangible-Asset may indicate vulnerability in the durability of the competitive advantage.
Cadence Design Systems Return-on-Tangible-Asset Related Terms
Cadence Design Systems Return-on-Tangible-Asset Historical Data
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The historical data trend for Cadence Design Systems's Return-on-Tangible-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.
Cadence Design Systems Return-on-Tangible-Asset Chart
XSWX:CDNS vs : Return-on-Tangible-Asset Comparison
For the Software - Application subindustry, Cadence Design Systems's Return-on-Tangible-Asset, along with its competitors' market caps and Return-on-Tangible-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 Return-on-Tangible-Asset vs Software Industry
For the Software industry and Technology sector, Cadence Design Systems's Return-on-Tangible-Asset distribution charts can be found below:
* The bar in red indicates where Cadence Design Systems's Return-on-Tangible-Asset 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.
In the calculation of annual Return-on-Tangible-Asset, the net income of the last fiscal year and the average total tangible assets over the fiscal year are used. In calculating the quarterly data,
the Net Income data used here is four times the quarterly (Mar. 2026) net income data.
What does a Return-on-Tangible-Asset of 22.37% mean?
Cadence Design Systems (XSWX:CDNS) has a Return-on-Tangible-Asset of 22.37% as of Mar. 2026. Return on tangible assets is the ratio of current-period net income to average two-period tangible assets. View historical data on Cadence Design Systems and its competitors. This is near median its historical median of 22.03. Over the past decade, Cadence Design Systems' Return-on-Tangible-Asset has ranged from 14.70 to 48.20. According to the industry distribution chart, Cadence Design Systems ranks #268 out of 2883 companies in the Software industry, placing it in the top 9.3%.
Is Cadence Design Systems' Return-on-Tangible-Asset too high?
Cadence Design Systems' current Return-on-Tangible-Asset of 22.37% is near median its 10-year median of 22.03. Over the past 10 years, this metric has ranged from a low of 14.70 to a high of 48.20. The Software industry median Return-on-Tangible-Asset is 2.02. Cadence Design Systems' value of 22.37% is 1007.4% above this industry median. Based on the distribution chart, Cadence Design Systems ranks #268 out of 2883 companies in the Software industry, which is in the top quartile — a strong position relative to peers. 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' Return-on-Tangible-Asset compare to ?
According to the Software industry distribution chart, Cadence Design Systems ranks #268 out of 2883 companies for Return-on-Tangible-Asset. This places Cadence Design Systems in the top 9% of its industry — outperforming the majority of peers. The industry median Return-on-Tangible-Asset is 2.02. Cadence Design Systems' value of 22.37% is 1007.4% above this benchmark. Historically, Cadence Design Systems' own Return-on-Tangible-Asset has ranged from 14.70 to 48.20 over the past decade. While the company's 10-year median is 22.03 vs. the industry median of 2.02, 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 Return-on-Tangible-Asset for a Software company?
The median Return-on-Tangible-Asset among Software companies is 2.02, based on 2,883 companies in the industry. Companies in the top quartile (top 25%) have a Return-on-Tangible-Asset significantly above this median, while those in the bottom quartile fall well below. However, Return-on-Tangible-Asset should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Cadence Design Systems's current Return-on-Tangible-Asset of 22.37% is 1007.4% 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 Return-on-Tangible-Asset mean?
A high Return-on-Tangible-Asset can signal that a stock is expensive relative to its fundamentals. Return on tangible assets is the ratio of current-period net income to average two-period tangible assets. View historical data on Cadence Design Systems and its competitors. For the Software industry, the median Return-on-Tangible-Asset is 2.02 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Cadence Design Systems's current Return-on-Tangible-Asset is 22.37%, which is near median its own 10-year median of 22.03. 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 Return-on-Tangible-Asset of 22.37%. The stock's GF Value™ is CHF314.60, compared to a current price of CHF310.65 — trading 1.3% below its estimated fair value. The current Return-on-Tangible-Asset is 22.37%, which is near median its 10-year median of 22.03 and 1007.4% above the Software industry median of 2.02. Cadence Design Systems' overall GF Score™ is 99/100 with 4 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Return-on-Tangible-Asset calculated?
Return-on-Tangible-Asset is calculated from a company's financial statements. For Cadence Design Systems (XSWX:CDNS), the current Return-on-Tangible-Asset is 22.37% as of Mar. 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 CHF310.65 is trading 1.3% below its estimated GF Value™ of CHF314.60.
Key valuation signals for XSWX:CDNS:
Return-on-Tangible-Asset: 22.37% (near median its 10-year median of 22.03)
GF Value™: CHF314.60 vs. price of CHF310.65 (1.3% below fair value)
Industry Position: 1007.4% above the Software median (#268 of 2883)
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
Return-on-Tangible-Asset is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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