Cognizant Technology Solutions Corp Class A (CTSH)
Receivables turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 19,736,000 | 19,353,000 | 19,428,000 | 18,507,000 | 16,652,000 |
| Receivables | US$ in thousands | 4,059,000 | 3,849,000 | 3,796,000 | 3,557,000 | 3,087,000 |
| Receivables turnover | 4.86 | 5.03 | 5.12 | 5.20 | 5.39 |
December 31, 2024 calculation
Receivables turnover = Revenue ÷ Receivables
= $19,736,000K ÷ $4,059,000K
= 4.86
The receivables turnover ratio for Cognizant Technology Solutions Corp Class A has shown a gradual decline over the past five years. It decreased from 5.39 in December 31, 2020, to 4.86 in December 31, 2024. This indicates that the company takes slightly longer to collect its accounts receivable in recent years. A decreasing trend in receivables turnover may suggest potential issues with credit policies, collection efficiency, or a change in customer payment behaviors. It is important for the company to monitor this ratio closely and take necessary actions to improve collection processes to ensure timely cash flow.
Peer comparison
Dec 31, 2024