Debt-to-Equity Ratio
Higher than 62% of Technology sector peers
Updated 200h ago
Sector Performance
62th percentileCDNS
0.44x
Sector Median
0.27x
Sector Avg
0.42x
Deep Analysis
The Debt-to-Equity Ratio measures how much a company relies on debt compared to shareholder equity for financing; a ratio of 0.44x means CDNS has $0.44 in debt for every $1 of equity, indicating moderate leverage.
Among Technology sector peers, this ratio is above the median of 0.27x, placing CDNS at the 60th percentile—higher debt than 60% of its sector. Year-over-year change is not available, but the ratio has decreased 6.4% quarter-over-quarter from 0.47x to 0.44x. The combination of a debt level above the sector median with a recent downward trend suggests that while leverage is higher than typical peers, the company is actively reducing debt exposure, which tempers risk. This trend could indicate improving financial discipline, but the elevated level relative to peers still warrants attention. The ratio supports the overall NEUTRAL verdict: it is not dangerously high, but it also does not signal a clear advantage over sector norms.
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.
How does CDNS's Debt-to-Equity Ratio compare to its sector?
CDNS's Debt-to-Equity Ratio of 0.44x compares to a Technology sector median of 0.27x, placing it in the 62th percentile.
Who are CDNS's closest peers by Debt-to-Equity Ratio?
The closest Technology peers by Debt-to-Equity Ratio include: GRAB (0.30x), AMBA (0.02x), LIF (0.52x), SHOP (0.01x), LSPD (0.01x).
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.
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0.44x
Sector Median
0.27x
Sector Avg
0.42x
How CDNS's Debt-to-Equity Ratio compares to sector peers.
Also Analyze
Not financial advice. Research tool only. Data may be delayed.