Cognizant Technology Solutions Corp Class A (CTSH)

Total asset turnover

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Revenue	US$ in thousands	19,353,000	19,428,000	18,507,000	16,652,000	16,783,000
Total assets	US$ in thousands	18,483,000	17,852,000	17,852,000	16,923,000	16,204,000
Total asset turnover		1.05	1.09	1.04	0.98	1.04

December 31, 2023 calculation

Total asset turnover = Revenue ÷ Total assets
= $19,353,000K ÷ $18,483,000K
= 1.05

The total asset turnover ratio measures the efficiency of Cognizant Technology Solutions Corp. in generating sales from its total assets. A higher total asset turnover ratio indicates that the company is more efficient in utilizing its assets to generate revenue.

Examining the trend over the past five years, we observe fluctuations in Cognizant's total asset turnover ratio. In 2023, the ratio decreased slightly to 1.05 from 1.09 in 2022, but remained relatively steady compared to previous years. This suggests that the company generated $1.05 in revenue for every dollar of assets in 2023.

In 2021 and 2019, the total asset turnover ratio was at 1.04, indicating consistent efficiency in asset utilization during those years. However, in 2020, the ratio dropped to 0.98, which could imply lower sales generated per dollar of assets that year.

Overall, despite some fluctuations, Cognizant Technology Solutions Corp. has maintained a fairly stable total asset turnover ratio over the past five years, reflecting a reasonable level of efficiency in leveraging its assets to generate revenue. Additional analysis and comparison with industry peers may provide further insights into the company's performance.