Cognizant Technology Solutions Corp Class A (CTSH)
Payables 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cost of revenue (ttm) | US$ in thousands | 16,844,000 | 16,547,000 | 16,452,000 | 16,619,000 | 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 |
| Payables | US$ in thousands | 340,000 | 304,000 | 298,000 | 291,000 | 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 |
| 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 |
December 31, 2024 calculation
Payables turnover = Cost of revenue (ttm) ÷ Payables
= $16,844,000K ÷ $340,000K
= 49.54
The payables turnover ratio is a liquidity metric used to assess how efficiently a company manages its accounts payable by comparing the total purchases made on credit to the average accounts payable balance during a given period.
Analyzing the payables turnover ratio of Cognizant Technology Solutions Corp Class A from March 31, 2020, to December 31, 2024, we observe fluctuations in the ratio, indicating changes in the company's efficiency in managing its payables.
The payables turnover ratio for Cognizant ranged from 34.47 to 57.11 during this period. The ratio fluctuated, showing both peaks and troughs. Generally, a higher turnover ratio suggests that the company is paying off its suppliers more frequently, which could indicate strong supplier relationships or efficient cash management.
In the later years of the period, the ratio shows an increasing trend, reaching its peak at 57.11 on March 31, 2024. This could indicate that Cognizant was able to manage its payables more efficiently during that period.
Overall, the payables turnover ratio of Cognizant Technology Solutions Corp Class A exhibited fluctuations but trended upwards towards the end of the period. This suggests improvements in managing accounts payable and potentially better cash flow management.
Peer comparison
Dec 31, 2024