Cognizant Technology Solutions Corp Class A (CTSH)

Number of days of payables

		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
Payables turnover		49.54	54.43	55.21	57.11	49.45	51.64	52.30	49.60	45.72	44.56	45.68	40.74	43.44	43.75	42.68	41.90	37.37	34.47	39.80	48.97
Number of days of payables	days	7.37	6.71	6.61	6.39	7.38	7.07	6.98	7.36	7.98	8.19	7.99	8.96	8.40	8.34	8.55	8.71	9.77	10.59	9.17	7.45

December 31, 2024 calculation

Number of days of payables = 365 ÷ Payables turnover
= 365 ÷ 49.54
= 7.37

Cognizant Technology Solutions Corp Class A has shown a gradual decrease in the number of days of payables over the periods under consideration. The number of days of payables decreased from 7.45 days on March 31, 2020, to 6.71 days on September 30, 2024. This indicates that the company takes fewer days to pay off its creditors, which could imply improved liquidity or negotiation power with suppliers. The decreasing trend in days of payables suggests that the company may be managing its working capital more efficiently over time. It is important to closely monitor this ratio to ensure that the company maintains a balance between managing cash flow and building good relationships with its suppliers.