Cadence Design Systems Overview
Valuation check: CDNS's ROE is 20.09%, below the Technology sector average of 47.42%.
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+ Follow20.09%
Return on Equity measures how efficiently a company uses shareholders' equity to generate profits. A higher ROE indicates better profitability relative to equity.
Cadence Design Systems's return on equity stands at 20.09%. That is below the Technology sector average of 47.42%. Stockcircle updates this page with the newest filings so you can track how the metric evolves quarter by quarter.
Cadence Design Systems sits lower the Technology benchmark (47.42%) with a ROE of 20.09%. That is roughly 57.6% below the sector mean. Peer context matters because what looks expensive or cheap in absolute terms can be normal for the sector.
A ROE of 20.09% for Cadence Design Systems means each unit of related capital or sales is generating that return rate. Higher is usually better for profitability metrics, but extremely high figures can reflect one-time items or thin equity bases. Review several years of data on this page before extrapolating.
The history chart shows how Cadence Design Systems's ROE evolved across reporting periods, while the comparison chart places CDNS next to similar companies. Use both: a rising metric that still lags peers tells a different story than a rising metric that already leads the group. Growth charts, when available, highlight acceleration or slowdown.
Yes — within Technology, ROE is commonly used to spot outliers. Cadence Design Systems's reading of 20.09% (sector avg 47.42%) is a starting point; confirm whether differences come from growth, margins, accounting choices, or one-time items before treating an outlier as a buy or sell signal.
