Cadence Design Systems: Favorable Returns on Capital Amidst Rising Business Efficiency

Cadence Design Systems has an ROCE of 20%, higher than the Software industry average of 7.4%. The company has employed 171% more capital in the last five years, with stable returns on that capital. This suggests a strong business model with favorable reinvestment opportunities. The trend of ROCE indicates a well-operated business that is capable of generating high returns on its capital.