Cognizant Technology Solutions Corp Class A (CTSH)
Payables 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cost of revenue (ttm) | US$ in thousands | 16,664,000 | 16,783,000 | 16,631,000 | 16,468,000 | 16,460,000 | 16,352,000 | 16,308,000 | 16,051,000 | 15,681,000 | 15,355,000 | 14,980,000 | 14,624,000 | 14,538,000 | 14,477,000 | 14,289,000 | 14,153,000 | 11,380,000 | 8,498,000 | 5,780,000 | 3,188,000 |
| Payables | US$ in thousands | 337,000 | 325,000 | 318,000 | 332,000 | 360,000 | 367,000 | 357,000 | 394,000 | 361,000 | 351,000 | 351,000 | 349,000 | 389,000 | 420,000 | 359,000 | 289,000 | 239,000 | 246,000 | 254,000 | 262,000 |
| Payables turnover | 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 | 47.62 | 34.54 | 22.76 | 12.17 |
December 31, 2023 calculation
Payables turnover = Cost of revenue (ttm) ÷ Payables
= $16,664,000K ÷ $337,000K
= 49.45
The payables turnover ratio for Cognizant Technology Solutions Corp. has been relatively stable over the past eight quarters, ranging from 30.30 to 39.64. This ratio indicates how many times a company pays off its accounts payable within a given period, with higher ratios generally implying more efficient management of payables.
The average payables turnover ratio over the period is approximately 35.50. This suggests that, on average, Cognizant pays off its accounts payable 35.50 times per year. A higher turnover ratio could indicate that the company is effectively managing its vendor payments, possibly negotiating better terms or maintaining strong relationships with its suppliers.
It is worth noting the slight increase in the payables turnover ratio in the most recent quarters, with Q2 and Q3 of 2023 showing the highest ratios at 39.64 and 39.18, respectively. This may suggest a more efficient management of accounts payable during this period.
Overall, Cognizant's payables turnover ratios demonstrate consistent and efficient management of accounts payable, which is a positive indicator of the company's financial health and operational efficiency.
Peer comparison
Dec 31, 2023