CDNSNEUTRAL

CDNS Debt-to-Equity Ratio Analysis

0.36x

Updated 105h ago·SEC filings & market data

Key Takeaway

A Debt-to-Equity Ratio of 0.36x means the company uses 36 cents of debt for every dollar of shareholders’ equity, indicating a conservative capital structure with low financial leverage.

Sector Performance

27th percentile

CDNS

0.36x

Sector Median

0.74x

Sector Avg

2.51x

Prior Period

0.44x(Jul 2026)

↑ Improving

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Deep Analysis

A Debt-to-Equity Ratio of 0.36x means the company uses 36 cents of debt for every dollar of shareholders’ equity, indicating a conservative capital structure with low financial leverage.

Compared to sector peers, this is well below the sector median of 0.73x, placing CDNS in the 26th percentile, meaning most peers carry more debt relative to equity. The year-over-year change is not available, but the quarter-over-quarter change shows a 18.2% decrease, dropping from 0.44x to 0.36x. The combination of a low ratio and a declining trend suggests reduced financial risk and greater balance-sheet flexibility, which can support operations or investments without added debt pressure. This low and falling leverage offers a buffer against economic downturns, but it may also indicate that management is not aggressively pursuing growth through borrowing. This metric supports the overall NEUTRAL verdict, as the conservative debt position lowers downside risk but does not by itself signal a strong catalyst for stock appreciation.

Frequently Asked Questions

What does the Debt-to-Equity Ratio tell investors about CDNS?

Shows how much a company is financing its operations through debt vs shareholder funds. High D/E can amplify returns — and losses.

How is the Debt-to-Equity Ratio calculated?

Debt-to-Equity Ratio is calculated as: Total Debt / Shareholders' Equity.

Who are CDNS's closest peers by Debt-to-Equity Ratio?

The closest peers by Debt-to-Equity Ratio include: TAP (0.76x), PCAR (0.72x), O (0.78x), PRU (0.78x), KIM (0.85x).

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Learn More About Debt-to-Equity Ratio

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Debt/Equity Ratio: How Much Debt Is Too Much?

The debt to equity ratio explained: why context, interest coverage, and sector norms matter far more than the raw number when assessing debt risk.

The Formula

Total Debt / Shareholders' Equity

Why It Matters

Shows how much a company is financing its operations through debt vs shareholder funds. High D/E can amplify returns — and losses.