Cadence Design Net Income vs. Operating Margin
| CDS Stock | EUR 286.90 5.35 1.83% |
For Cadence Design profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Cadence Design to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Cadence Design Systems utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Cadence Design's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Cadence Design Systems over time as well as its relative position and ranking within its peers.
Cadence |
Cadence Design Systems Operating Margin vs. Net Income Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining Cadence Design's current stock value. Our valuation model uses many indicators to compare Cadence Design value to that of its competitors to determine the firm's financial worth. Cadence Design Systems is number one stock in net income category among its peers. It also is number one stock in operating margin category among its peers . The ratio of Net Income to Operating Margin for Cadence Design Systems is about 2,789,852,120 . The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the Cadence Design's earnings, one of the primary drivers of an investment's value.Cadence Operating Margin vs. Net Income
Net income is the profit of a company for the reporting period, which is derived after taking revenues and gains and subtracting all expenses and losses. Net income is one of the most-watched numbers by money managers as well as individual investors.
Cadence Design |
| = | 848.95 M |
Because income is reported on the Income Statement of a company and is measured in dollars some investors prefer to use Profit Margin, which measures income as a percentage of sales.
Operating Margin shows how much operating income a company makes on each dollar of sales. It is one of the profitability indicators which helps analysts to understand whether the firm is successful or not making money from everyday operations.
Cadence Design |
| = | 0.30 % |
A good Operating Margin is required for a company to be able to pay for its fixed costs or payout its debt, which implies that the higher the margin, the better. This ratio is most effective in evaluating the earning potential of a company over time when comparing it against a firm's competitors.
Cadence Operating Margin Comparison
Cadence Design is currently under evaluation in operating margin category among its peers.
Cadence Design Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in Cadence Design, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Cadence Design will eventually generate negative long term returns. The profitability progress is the general direction of Cadence Design's change in net profit over the period of time. It can combine multiple indicators of Cadence Design, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
Cadence Design Systems, Inc. provides software, hardware, services, and reusable integrated circuit design blocks worldwide. Cadence Design Systems, Inc. was founded in 1988 and is headquartered in San Jose, California. CADENCE DESIGN operates under Software - Application classification in Germany and is traded on Frankfurt Stock Exchange. It employs 7500 people.
Cadence Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on Cadence Design. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of Cadence Design position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the Cadence Design's important profitability drivers and their relationship over time.
Use Cadence Design in pair-trading
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.Cadence Design Pair Trading
Cadence Design Systems Pair Trading Analysis
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.Use Investing Themes to Complement your Cadence Design position
In addition to having Cadence Design in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.Did You Try This Idea?
Run Corporate ETFs Thematic Idea Now
Corporate ETFs
ETF themes focus on helping investors to gain exposure to a broad range of assets, diversify, and lower overall costs. The Corporate ETFs theme has 223 constituents at this time.
You can either use a buy-and-hold strategy to lock in the entire theme or actively trade it to take advantage of the short-term price volatility of individual constituents. Macroaxis can help you discover thousands of investment opportunities in different asset classes. In addition, you can partner with us for reliable portfolio optimization as you plan to utilize Corporate ETFs Theme or any other thematic opportunities.
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Additional Information and Resources on Investing in Cadence Stock
When determining whether Cadence Design Systems is a strong investment it is important to analyze Cadence Design's competitive position within its industry, examining market share, product or service uniqueness, and competitive advantages. Beyond financials and market position, potential investors should also consider broader economic conditions, industry trends, and any regulatory or geopolitical factors that may impact Cadence Design's future performance. For an informed investment choice regarding Cadence Stock, refer to the following important reports:Check out Trending Equities. You can also try the Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
To fully project Cadence Design's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Cadence Design Systems at a specified time, usually calculated after every quarter, six months, or one year. Three primary documents fall into the category of financial statements. These documents include Cadence Design's income statement, its balance sheet, and the statement of cash flows.