Cognizant Technology Solutions Corp Class A (CTSH)
Fixed asset turnover
| Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 19,353,000 | 19,434,000 | 19,394,000 | 19,414,000 | 19,428,000 | 19,366,000 | 19,253,000 | 18,932,000 | 18,507,000 | 17,914,000 | 17,413,000 | 16,828,000 | 16,652,000 | 16,752,000 | 16,757,000 | 16,898,000 | 16,783,000 | 16,628,000 | 16,458,000 | 16,323,000 |
| Property, plant and equipment | US$ in thousands | 1,048,000 | 1,048,000 | 1,087,000 | 1,102,000 | 1,101,000 | 1,105,000 | 1,121,000 | 1,171,000 | 1,171,000 | 1,179,000 | 1,225,000 | 1,250,000 | 1,251,000 | 1,313,000 | 1,345,000 | 1,322,000 | 1,309,000 | 1,318,000 | 1,337,000 | 1,314,000 |
| Fixed asset turnover | 18.47 | 18.54 | 17.84 | 17.62 | 17.65 | 17.53 | 17.17 | 16.17 | 15.80 | 15.19 | 14.21 | 13.46 | 13.31 | 12.76 | 12.46 | 12.78 | 12.82 | 12.62 | 12.31 | 12.42 |
December 31, 2023 calculation
Fixed asset turnover = Revenue (ttm) ÷ Property, plant and equipment
= $19,353,000K ÷ $1,048,000K
= 18.47
Cognizant Technology Solutions Corp.'s fixed asset turnover ratio has displayed stability and positive performance over the past eight quarters. The company's fixed asset turnover ratio has been consistently above 16, indicating the company's strong efficiency in generating revenues from its fixed assets.
The trend shows a slight increase from Q1 2022 to Q3 2023, with a peak of 18.54 in Q3 2023. This demonstrates that Cognizant has been effectively utilizing its fixed assets to generate revenue, as higher turnover ratios signify that the company is generating more sales relative to its investment in fixed assets.
The average fixed asset turnover ratio for the period analyzed stands at approximately 17.49. This indicates that, on average, Cognizant is generating $17.49 in sales for every dollar invested in fixed assets.
Overall, the consistent high fixed asset turnover ratios reflect Cognizant's operational efficiency and effective management of its fixed assets to drive revenue generation. It suggests that the company is efficiently utilizing its assets to drive sales and achieve its financial objectives.
Peer comparison
Dec 31, 2023