Cadence Net Invested Capital vs Long Term Investments Analysis
CDNS Stock | USD 282.41 5.33 1.92% |
Cadence Design financial indicator trend analysis is way more than just evaluating Cadence Design Systems prevailing accounting drivers to predict future trends. We encourage investors to analyze account correlations over time for multiple indicators to determine whether Cadence Design Systems is a good investment. Please check the relationship between Cadence Design Net Invested Capital and its Long Term Investments accounts. Check out Trending Equities to better understand how to build diversified portfolios, which includes a position in Cadence Design Systems. Also, note that the market value of any company could be tightly coupled with the direction of predictive economic indicators such as signals in board of governors.
Net Invested Capital vs Long Term Investments
Net Invested Capital vs Long Term Investments Correlation Analysis
The overlapping area represents the amount of trend that can be explained by analyzing historical patterns of Cadence Design Systems Net Invested Capital account and Long Term Investments. At this time, the significance of the direction appears to have very strong relationship.
The correlation between Cadence Design's Net Invested Capital and Long Term Investments is 0.81. Overlapping area represents the amount of variation of Net Invested Capital that can explain the historical movement of Long Term Investments in the same time period over historical financial statements of Cadence Design Systems, assuming nothing else is changed. The correlation between historical values of Cadence Design's Net Invested Capital and Long Term Investments is a relative statistical measure of the degree to which these accounts tend to move together. The correlation coefficient measures the extent to which Net Invested Capital of Cadence Design Systems are associated (or correlated) with its Long Term Investments. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when Long Term Investments has no effect on the direction of Net Invested Capital i.e., Cadence Design's Net Invested Capital and Long Term Investments go up and down completely randomly.
Correlation Coefficient | 0.81 |
Relationship Direction | Positive |
Relationship Strength | Strong |
Net Invested Capital
The total amount of capital invested in a company, including both equity and debt, minus any cash or cash equivalents.Long Term Investments
Long Term Investments is an item on the asset side of Cadence Design balance sheet that represents investments Cadence Design Systems intends to hold for over a year. Cadence Design Systems long term investments may include different instruments such as stocks, bonds, real estate and cash.Most indicators from Cadence Design's fundamental ratios are interrelated and interconnected. However, analyzing fundamental ratios indicators one by one will only give a small insight into Cadence Design Systems current financial condition. On the other hand, looking into the entire matrix of fundamental ratios indicators, and analyzing their relationships over time can provide a more complete picture of the company financial strength now and in the future. Check out Trending Equities to better understand how to build diversified portfolios, which includes a position in Cadence Design Systems. Also, note that the market value of any company could be tightly coupled with the direction of predictive economic indicators such as signals in board of governors. At this time, Cadence Design's Tax Provision is comparatively stable compared to the past year. Sales General And Administrative To Revenue is likely to gain to 0.09 in 2024, whereas Issuance Of Capital Stock is likely to drop slightly above 90.7 M in 2024.
2021 | 2022 | 2023 | 2024 (projected) | Gross Profit | 2.7B | 3.2B | 3.6B | 3.8B | Total Revenue | 3.0B | 3.6B | 4.1B | 4.3B |
Cadence Design fundamental ratios Correlations
Click cells to compare fundamentals
Cadence Design Account Relationship Matchups
High Positive Relationship
High Negative Relationship
Cadence Design fundamental ratios Accounts
2019 | 2020 | 2021 | 2022 | 2023 | 2024 (projected) | ||
Total Assets | 3.4B | 4.0B | 4.4B | 5.1B | 5.7B | 6.0B | |
Short Long Term Debt Total | 346.0M | 346.8M | 347.6M | 748.1M | 806.0M | 846.3M | |
Other Current Liab | 316.9M | 350.0M | 417.3M | 510.0M | 443.7M | 223.2M | |
Total Current Liabilities | 672.4M | 796.8M | 971.2M | 1.3B | 1.6B | 1.7B | |
Total Stockholder Equity | 2.1B | 2.5B | 2.7B | 2.7B | 3.4B | 3.6B | |
Property Plant And Equipment Net | 275.9M | 311.1M | 305.9M | 371.5M | 554.0M | 581.7M | |
Net Debt | (359.2M) | (581.6M) | (741.4M) | (134.2M) | (202.1M) | (212.2M) | |
Retained Earnings | 1.8B | 2.4B | 3.0B | 3.9B | 4.9B | 5.2B | |
Cash | 705.2M | 928.4M | 1.1B | 882.3M | 1.0B | 1.1B | |
Non Current Assets Total | 2.2B | 2.5B | 2.7B | 3.4B | 3.7B | 3.9B | |
Non Currrent Assets Other | 207.2M | 303.9M | 311.7M | 356.3M | 137.2M | 194.3M | |
Cash And Short Term Investments | 705.2M | 928.4M | 1.1B | 882.3M | 1.1B | 1.2B | |
Net Receivables | 304.5M | 338.5M | 337.6M | 486.7M | 506.8M | 532.1M | |
Common Stock Shares Outstanding | 280.5M | 279.6M | 278.9M | 275.0M | 272.7M | 259.7M | |
Liabilities And Stockholders Equity | 3.4B | 4.0B | 4.4B | 5.1B | 5.7B | 6.0B | |
Non Current Liabilities Total | 581.9M | 661.0M | 674.4M | 1.0B | 674.4M | 449.0M | |
Other Current Assets | 103.8M | 135.7M | 173.5M | 209.7M | 149.3M | 86.3M | |
Other Stockholder Equity | (1.7B) | (2.1B) | (2.7B) | (3.8B) | (4.6B) | (4.4B) | |
Total Liab | 1.3B | 1.5B | 1.6B | 2.4B | 2.3B | 2.4B | |
Property Plant And Equipment Gross | 376.2M | 444.5M | 1.2B | 1.3B | 1.4B | 1.5B | |
Total Current Assets | 1.2B | 1.5B | 1.7B | 1.7B | 2.0B | 2.1B | |
Accumulated Other Comprehensive Income | (36.9M) | (17.4M) | (33.3M) | (91.6M) | (94.8M) | (90.0M) | |
Short Term Debt | 100M | 25.6M | 33.9M | 25.3M | 390.9M | 410.4M | |
Accounts Payable | (25.6M) | (33.9M) | (25.3M) | 47.1M | 91.2M | 62.2M | |
Inventory | 55.8M | 76.0M | 115.7M | 128.0M | 181.7M | 190.7M | |
Intangible Assets | 172.4M | 210.6M | 233.3M | 354.6M | 336.8M | 324.2M | |
Common Stock | 2.0B | 2.2B | 2.5B | 2.8B | 3.2B | 3.3B | |
Current Deferred Revenue | 355.5M | 446.9M | 553.9M | 690.5M | 665.0M | 698.3M | |
Common Stock Total Equity | 2.0B | 2.2B | 2.5B | 2.8B | 3.2B | 3.3B | |
Short Term Investments | 4.6M | 4.5M | 6.0M | 4.5M | 130.4M | 136.9M | |
Other Liab | 151.1M | 200.3M | 326.8M | 256.8M | 231.2M | 202.3M | |
Other Assets | 839.2M | 902.8M | 1.2B | 1.0B | 1.2B | 1.3B | |
Long Term Debt | 346.0M | 346.8M | 347.6M | 648.1M | 299.8M | 388.2M | |
Treasury Stock | (1.7B) | (2.1B) | (2.7B) | (3.8B) | (3.4B) | (3.3B) | |
Property Plant Equipment | 275.9M | 311.1M | 305.9M | 371.5M | 334.3M | 251.3M | |
Good Will | 661.9M | 782.1M | 928.4M | 1.4B | 1.5B | 864.7M | |
Net Tangible Assets | 2.1B | 1.5B | 1.6B | 1.0B | 1.2B | 1.1B | |
Retained Earnings Total Equity | 1.8B | 2.4B | 3.0B | 3.9B | 4.5B | 4.7B | |
Long Term Debt Total | 346.0M | 346.8M | 347.6M | 648.1M | 745.3M | 455.7M | |
Deferred Long Term Liab | 73.4M | 107.1M | 101.1M | 91.5M | 105.3M | 76.0M |
Pair Trading with Cadence Design
One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if Cadence Design position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Cadence Design will appreciate offsetting losses from the drop in the long position's value.Moving against Cadence Stock
0.54 | NOGWQ | Nogin Inc | PairCorr |
The ability to find closely correlated positions to Cadence Design could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Cadence Design when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Cadence Design - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Cadence Design Systems to buy it.
The correlation of Cadence Design is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Cadence Design moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Cadence Design Systems moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for Cadence Design can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.Check out Trending Equities to better understand how to build diversified portfolios, which includes a position in Cadence Design Systems. Also, note that the market value of any company could be tightly coupled with the direction of predictive economic indicators such as signals in board of governors. You can also try the Portfolio Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
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When running Cadence Design's price analysis, check to measure Cadence Design's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Cadence Design is operating at the current time. Most of Cadence Design's value examination focuses on studying past and present price action to predict the probability of Cadence Design's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Cadence Design's price. Additionally, you may evaluate how the addition of Cadence Design to your portfolios can decrease your overall portfolio volatility.
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Is Cadence Design's industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Cadence Design. If investors know Cadence will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Cadence Design listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth 0.022 | Earnings Share 3.84 | Revenue Per Share 15.135 | Quarterly Revenue Growth (0.01) | Return On Assets 0.1386 |
The market value of Cadence Design Systems is measured differently than its book value, which is the value of Cadence that is recorded on the company's balance sheet. Investors also form their own opinion of Cadence Design's value that differs from its market value or its book value, called intrinsic value, which is Cadence Design's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Cadence Design's market value can be influenced by many factors that don't directly affect Cadence Design's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Cadence Design's value and its price as these two are different measures arrived at by different means. Investors typically determine if Cadence Design is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Cadence Design's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.