Cadence Design Systems, Inc.'s (NASDAQ:CDNS) Stock Been Rising: Are Strong Financials Guiding The Market?
Cadence Design Systems, Inc.'s (NASDAQ:CDNS) Stock Been Rising: Are Strong Financials Guiding The Market?
Cadence Design Systems' (NASDAQ:CDNS) stock is up by 4.4% over the past month. Given its impressive performance, we decided to study the company's key financial indicators as a company's long-term fundamentals usually dictate market outcomes. Specifically, we decided to study Cadence Design Systems' ROE in this article.
Cadence Design Systems（纳斯达克股票代码：CDNS）的股票在过去一个月中上涨了4.4％。鉴于其令人印象深刻的业绩，我们决定研究该公司的关键财务指标，因为公司的长期基本面通常决定市场业绩。具体而言，我们决定在本文中研究Cadence设计系统的投资回报率。
Return on equity or ROE is a key measure used to assess how efficiently a company's management is utilizing the company's capital. In simpler terms, it measures the profitability of a company in relation to shareholder's equity.
股本回报率或投资回报率是用于评估公司管理层利用公司资本效率的关键指标。简而言之，它衡量公司相对于股东权益的盈利能力。
How To Calculate Return On Equity?
如何计算股本回报率？
The formula for ROE is:
ROE 的公式是：
Return on Equity = Net Profit (from continuing operations) ÷ Shareholders' Equity
股本回报率 = 净利润（来自持续经营业务）÷ 股东权益
So, based on the above formula, the ROE for Cadence Design Systems is:
因此，根据上述公式，Cadence设计系统的投资回报率为：
29% = US$1.0b ÷ US$3.6b (Based on the trailing twelve months to March 2024).
29% = 10亿美元 ÷ 36亿美元（基于截至2024年3月的过去十二个月）。
The 'return' is the amount earned after tax over the last twelve months. So, this means that for every $1 of its shareholder's investments, the company generates a profit of $0.29.
“回报” 是过去十二个月的税后收入。因此，这意味着公司每投资1美元，就会产生0.29美元的利润。
Why Is ROE Important For Earnings Growth?
为什么投资回报率对收益增长很重要？
We have already established that ROE serves as an efficient profit-generating gauge for a company's future earnings. Based on how much of its profits the company chooses to reinvest or "retain", we are then able to evaluate a company's future ability to generate profits. Assuming all else is equal, companies that have both a higher return on equity and higher profit retention are usually the ones that have a higher growth rate when compared to companies that don't have the same features.
我们已经确定，投资回报率是衡量公司未来收益的有效盈利指标。根据公司选择将多少利润进行再投资或 “保留”，我们便能够评估公司未来创造利润的能力。假设其他条件都一样，与功能不相同的公司相比，具有更高股本回报率和更高利润保留率的公司通常具有更高的增长率。
A Side By Side comparison of Cadence Design Systems' Earnings Growth And 29% ROE
Cadence Design Systems的收益增长和29％的投资回报率的并排比较
First thing first, we like that Cadence Design Systems has an impressive ROE. Secondly, even when compared to the industry average of 12% the company's ROE is quite impressive. Probably as a result of this, Cadence Design Systems was able to see a decent net income growth of 8.9% over the last five years.
首先，我们喜欢Cadence设计系统的投资回报率令人印象深刻。其次，即使与12％的行业平均水平相比，该公司的投资回报率也相当可观。可能是由于这个原因，Cadence Design Systems在过去五年中得以实现8.9％的不错的净收入增长。
We then compared Cadence Design Systems' net income growth with the industry and found that the company's growth figure is lower than the average industry growth rate of 14% in the same 5-year period, which is a bit concerning.
然后，我们将Cadence Design Systems的净收入增长与该行业进行了比较，发现该公司的增长数字低于同期14％的行业平均增长率，这有点令人担忧。
Earnings growth is an important metric to consider when valuing a stock. The investor should try to establish if the expected growth or decline in earnings, whichever the case may be, is priced in. This then helps them determine if the stock is placed for a bright or bleak future. Is CDNS fairly valued? This infographic on the company's intrinsic value has everything you need to know.
收益增长是对股票进行估值时要考虑的重要指标。无论如何，投资者应设法确定预期的收益增长或下降是否已计入其中。然后，这可以帮助他们确定股票是面向光明还是暗淡的未来。CDNS 的价值是否合理？这张关于公司内在价值的信息图包含了你需要知道的一切。
Is Cadence Design Systems Making Efficient Use Of Its Profits?
Cadence 设计系统能否有效利用其利润？
Given that Cadence Design Systems doesn't pay any regular dividends to its shareholders, we infer that the company has been reinvesting all of its profits to grow its business.
鉴于Cadence Design Systems不向其股东支付任何定期股息，我们推断该公司一直在将其所有利润再投资以发展业务。
Conclusion
结论
On the whole, we feel that Cadence Design Systems' performance has been quite good. Specifically, we like that the company is reinvesting a huge chunk of its profits at a high rate of return. This of course has caused the company to see a good amount of growth in its earnings. With that said, the latest industry analyst forecasts reveal that the company's earnings are expected to accelerate. To know more about the company's future earnings growth forecasts take a look at this free report on analyst forecasts for the company to find out more.
总的来说，我们认为Cadence设计系统的表现相当不错。具体而言，我们喜欢该公司以高回报率再投资其利润的很大一部分。当然，这使该公司的收益实现了可观的增长。话虽如此，最新的行业分析师预测显示，该公司的收益有望加速。要了解有关公司未来收益增长预测的更多信息，请查看这份关于分析师预测的免费报告，以了解更多信息。
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Simply Wall St的这篇文章本质上是笼统的。我们仅使用公正的方法根据历史数据和分析师的预测提供评论，我们的文章无意作为财务建议。它不构成买入或卖出任何股票的建议，也没有考虑到您的目标或财务状况。我们的目标是为您提供由基本数据驱动的长期重点分析。请注意，我们的分析可能不考虑最新的价格敏感型公司公告或定性材料。简而言之，华尔街没有持有任何上述股票的头寸。
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