Cognizant Technology Solutions Corp Class A (CTSH)
Receivables 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 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 | 16,783,000 | 16,628,000 | 16,458,000 | 16,323,000 |
| Receivables | US$ in thousands | 3,849,000 | 3,807,000 | 3,755,000 | 3,718,000 | 3,796,000 | 3,686,000 | 3,785,000 | 3,663,000 | 3,557,000 | 3,510,000 | 3,419,000 | 3,232,000 | 3,087,000 | 3,118,000 | 3,208,000 | 3,220,000 | 3,256,000 | 3,438,000 | 3,386,000 | 3,377,000 |
| Receivables turnover | 5.03 | 5.10 | 5.16 | 5.22 | 5.12 | 5.25 | 5.09 | 5.17 | 5.20 | 5.10 | 5.09 | 5.21 | 5.39 | 5.37 | 5.22 | 5.25 | 5.15 | 4.84 | 4.86 | 4.83 |
December 31, 2023 calculation
Receivables turnover = Revenue (ttm) ÷ Receivables
= $19,353,000K ÷ $3,849,000K
= 5.03
The receivables turnover ratio for Cognizant Technology Solutions Corp. has been relatively stable over the past eight quarters, ranging from 5.03 to 5.25. This indicates that, on average, the company collects its accounts receivable approximately 5 times a year.
The consistency of the receivables turnover ratio suggests that Cognizant is efficiently managing its accounts receivable collection process. A higher turnover ratio generally indicates a more efficient collection process, reflecting the company's ability to convert credit sales into cash quickly.
Overall, Cognizant's receivables turnover ratio indicates a healthy balance between credit sales and collections, reflecting positively on the company's liquidity and operational efficiency in managing its accounts receivable.
Peer comparison
Dec 31, 2023