Cognizant Technology Solutions Corp Class A (CTSH)
Fixed asset turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 19,353,000 | 19,428,000 | 18,507,000 | 16,652,000 | 16,783,000 |
| Property, plant and equipment | US$ in thousands | 1,048,000 | 1,101,000 | 1,171,000 | 1,251,000 | 1,309,000 |
| Fixed asset turnover | 18.47 | 17.65 | 15.80 | 13.31 | 12.82 |
December 31, 2023 calculation
Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $19,353,000K ÷ $1,048,000K
= 18.47
Cognizant Technology Solutions Corp.'s fixed asset turnover has shown a consistent upward trend over the past five years, indicating an improvement in efficiency in utilizing its fixed assets to generate revenue. The ratio increased from 12.82 in 2019 to 18.47 in 2023, reflecting a steady enhancement in asset utilization.
This upward trend suggests that the company has been able to generate more revenue relative to its investment in fixed assets, which could signify effective asset management and operational efficiency. The substantial increase in fixed asset turnover from 2019 to 2023 signifies that Cognizant has been successful in optimizing the use of its fixed assets to generate sales.
Overall, the rising trend in fixed asset turnover demonstrates a positive performance in terms of asset utilization efficiency for Cognizant Technology Solutions Corp.
Peer comparison
Dec 31, 2023