Cognizant Technology Solutions Corp Class A (CTSH)
Fixed asset turnover
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 19,736,000 | 19,412,000 | 19,265,000 | 19,301,000 | 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 |
| Property, plant and equipment | US$ in thousands | 994,000 | 1,001,000 | 1,009,000 | 1,036,000 | 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 |
| Fixed asset turnover | 19.86 | 19.39 | 19.09 | 18.63 | 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 |
December 31, 2024 calculation
Fixed asset turnover = Revenue (ttm) ÷ Property, plant and equipment
= $19,736,000K ÷ $994,000K
= 19.86
Fixed asset turnover is a financial ratio that measures a company's ability to generate revenue from its investment in fixed assets. Cognizant Technology Solutions Corp Class A has shown a consistently increasing trend in its fixed asset turnover over the past few years.
The fixed asset turnover ratio has increased from 12.78 in March 2020 to 19.86 in December 2024. This indicates that the company has been able to generate more revenue from its fixed assets over time. A higher fixed asset turnover ratio suggests that the company is effectively utilizing its fixed assets to generate sales.
The upward trend in the fixed asset turnover ratio is a positive sign for Cognizant Technology Solutions Corp Class A, as it implies improved efficiency and productivity in utilizing its fixed assets to generate revenue. It shows that the company is effectively managing its fixed assets to support its operations and drive growth in sales.
Overall, the increasing fixed asset turnover ratio reflects positively on the company's operational efficiency and effectiveness in utilizing its resources to drive revenue growth.
Peer comparison
Dec 31, 2024