CDNSNEUTRAL

CDNS Return on Equity (ROE) Analysis

23.2%

Updated 105h ago·SEC filings & market data

Key Takeaway

Return on Equity (ROE) measures how effectively a company generates profit from shareholders' equity – a 20.7% ROE means CDNS earns about $20.70 for every $100 of equity.

Sector Performance

74th percentile

CDNS

23.2%

Sector Median

13.3%

Sector Avg

16.9%

Prior Period

20.7%(Jul 2026)

↑ Improving

📊

Deep Analysis

Return on Equity (ROE) measures how effectively a company generates profit from shareholders' equity – a 20.7% ROE means CDNS earns about $20.70 for every $100 of equity.

That figure far exceeds the Technology sector median of 6.9% and places CDNS in the 68th percentile among its peers, indicating above-average profitability relative to the sector. Trend data is not available: the year-over-year change, quarter-over-quarter change, and last-eight-quarter direction are all reported as N/A, with only the current 20.7% value provided. The combination of a high ROE level with no observable trend suggests a current efficiency advantage but offers no basis to gauge whether performance is improving or weakening, which limits assessment of future risk or opportunity. This metric supports a positive view of CDNS’s profitability and partially contradicts the overall NEUTRAL verdict – though the platform’s neutral stance likely reflects other factors that offset this strength.

Frequently Asked Questions

What does the Return on Equity (ROE) tell investors about CDNS?

ROE measures how effectively management turns equity into profit. Consistently above 15% is typically considered strong. Negative equity distorts this metric.

How is the Return on Equity (ROE) calculated?

Return on Equity (ROE) is calculated as: Net Income / Shareholders' Equity.

Who are CDNS's closest peers by Return on Equity (ROE)?

The closest peers by Return on Equity (ROE) include: LOW (-67.1%), MAR (-69.0%), BMBL (-76.9%), WBA (-82.7%), NIO (-84.0%).

📚

Learn More About Return on Equity (ROE)

What Is Return on Equity (ROE) and Is Higher Always Better?

Return on equity ROE measures how efficiently a company generates profit from shareholder capital. Learn how to decompose ROE using DuPont analysis and why high leverage can make it dangerous—with Apple and JPMorgan examples.

The Formula

Net Income / Shareholders' Equity

Why It Matters

ROE measures how effectively management turns equity into profit. Consistently above 15% is typically considered strong. Negative equity distorts this metric.