Cadence Design Systems, Inc.
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Cadence Design Systems, Inc. Financial Snapshot
Operating Performance
Fast Facts
Building 5, 2655 Seely Avenue, SAN JOSE, The company reported revenue of US$1,150 million
Headquarters Address
95134,United States of America during the fiscal year 2011 (2011). The company's
revenue declined at a compounded rate of 8.14%
Telephone + 14089431234
during 2007–2011, with an annual growth of 22.85%
over 2010. In 2011, the company recorded an
Fax + 13026555049 operating margin of 10.47%, as against -3.86% in
2010.
Website www.cadence.com
Ticker Symbol, Stock Exchange CDNS, NASDAQ Revenue and Margins
Number of Employees 4,700
Fiscal Year End December
Revenue (in US$ million) 1,150
SWOT Analysis
Strengths Weaknesses
Return on Equity
Strong product development platform Decline in profitability
The company recorded a return on equity (ROE) of
17.57% for the fiscal year 2011, as compared to its
Strong R&D activities Dependence on Americas peers, Synopsys, Inc. (Ticker: SNPS), ANSYS, Inc.
(Ticker: ANSS) and Mentor Graphics Corporation
Strong top line performance Limited Liquidity Position (Ticker: MENT), which recorded ROEs of 10.53%,
10.30% and 3.68% respectively. Furthermore, the
company reported an operating margin of 10.47% in
Opportunities Threats
2011.
Acquisition of Sigrity Intense Competition
Return on Equity
Growth in Semiconductor Market Rapid Changes in Technology
New product launches Shortage of Raw materials
Liquidity Position
The company reported a current ratio of 1.05 in 2011,
as compared to its peers, Synopsys, Inc., ANSYS,
Inc. and Mentor Graphics Corporation, which
recorded current ratios of 1.33, 1.69 and 1.48
respectively. As of December 2011, the company
recorded cash and short-term investments of worth
US$605 million, against US$294 million current debt.
The company reported a debt to equity ratio of 1.04 in
2011 as compared to its peers, Synopsys, Inc.,
ANSYS, Inc. and Mentor Graphics Corporation, which
recorded debt to equity ratios of 0.00, 0.07 and 0.29
respectively.
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Cadence Design Systems, Inc. - SWOT Profile Page 1
Cadence Design Systems, Inc.
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TABLE OF CONTENTS
1 Business Analysis ................................................................................................................................... 5
1.1 Company Overview ......................................................................................................................................... 5
1.2 Business Description ....................................................................................................................................... 5
1.3 Major Products and Services ........................................................................................................................... 7
2 Analysis of Key Performance Indicators ............................................................................................... 9
2.1 Five Year Snapshot: Overview of Financial and Operational Performance Indicators ....................................... 9
2.2 Key Financial Performance Indicators ............................................................................................................ 12
2.2.1 Revenue and Operating Profit.................................................................................................................... 12
2.2.2 Asset and Liabilities ................................................................................................................................... 13
2.2.3 Operational Efficiency ................................................................................................................................ 14
2.2.4 Solvency ................................................................................................................................................... 15
2.2.5 Valuation ................................................................................................................................................... 16
2.3 Competitive Benchmarking ............................................................................................................................ 17
2.3.1 Market Capitalization ................................................................................................................................. 17
2.3.2 Efficiency................................................................................................................................................... 18
2.3.3 Turnover – Inventory and Asset ................................................................................................................. 19
3 SWOT Analysis ...................................................................................................................................... 20
3.1 SWOT Analysis - Overview ............................................................................................................................ 20
3.2 Strengths ....................................................................................................................................................... 20
3.3 Weaknesses .................................................................................................................................................. 20
3.4 Opportunities ................................................................................................................................................. 21
3.5 Threats .......................................................................................................................................................... 21
4 Company Statement .............................................................................................................................. 22
5 History .................................................................................................................................................... 23
6 Key Employees ...................................................................................................................................... 25
7 Key Employee Biographies ................................................................................................................... 26
8 Locations and Subsidiaries .................................................................................................................. 27
8.1 Head Office ................................................................................................................................................... 27
8.2 Other Locations and Subsidiaries .................................................................................................................. 27
9 Appendix ................................................................................................................................................ 29
9.1 Methodology .................................................................................................................................................. 29
9.2 Ratio Definitions ............................................................................................................................................ 29
9.3 Disclaimer ..................................................................................................................................................... 33
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Cadence Design Systems, Inc. - SWOT Profile Page 2
Cadence Design Systems, Inc.
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List of Tables
Table 1: Major Products and Services ............................................................................................................................. 7
Table 2: Key Ratios - Annual ...........................