Cognizant Technology Solutions Corp Class A (CTSH)
Fixed asset turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 19,736,000 | 19,353,000 | 19,428,000 | 18,507,000 | 16,652,000 |
| Property, plant and equipment | US$ in thousands | 994,000 | 1,048,000 | 1,101,000 | 1,171,000 | 1,251,000 |
| Fixed asset turnover | 19.86 | 18.47 | 17.65 | 15.80 | 13.31 |
December 31, 2024 calculation
Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $19,736,000K ÷ $994,000K
= 19.86
The fixed asset turnover ratio for Cognizant Technology Solutions Corp Class A has shown a consistent positive trend over the years, increasing from 13.31 in December 2020 to 19.86 in December 2024. This indicates that the company has been effectively utilizing its fixed assets to generate revenue. The higher the fixed asset turnover ratio, the more efficiently the company is using its fixed assets to generate sales. Cognizant's steady improvement in this ratio suggests an enhanced operational efficiency and effective asset management, potentially leading to increased profitability. The trend reflects positively on the company's ability to make optimal use of its fixed assets to drive revenue growth over the years.
Peer comparison
Dec 31, 2024