Cognizant Technology Solutions Corp Class A (CTSH)
Total asset 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 |
| Total assets | US$ in thousands | 19,966,000 | 18,483,000 | 17,852,000 | 17,852,000 | 16,923,000 |
| Total asset turnover | 0.99 | 1.05 | 1.09 | 1.04 | 0.98 |
December 31, 2024 calculation
Total asset turnover = Revenue ÷ Total assets
= $19,736,000K ÷ $19,966,000K
= 0.99
The total asset turnover of Cognizant Technology Solutions Corp Class A has shown some fluctuations over the years based on the provided data. The ratio indicates how efficiently the company is utilizing its total assets to generate revenue.
In 2020, the total asset turnover ratio was 0.98, suggesting that the company generated $0.98 in revenue for every dollar of assets. The ratio increased to 1.04 in 2021, indicating slightly improved efficiency in asset utilization.
By the end of 2022, the total asset turnover ratio further improved to 1.09, reaching its highest point in the five-year period. This suggests that the company was able to generate $1.09 in revenue for each dollar of assets invested, showcasing efficient asset management.
However, in 2023, the ratio dipped slightly to 1.05 before decreasing further to 0.99 at the end of 2024. These declines may indicate challenges in maintaining or improving asset efficiency during those years.
Overall, the trend in total asset turnover for Cognizant Technology Solutions Corp Class A shows some variability, with periods of improvement and slight decline. It is important for the company to focus on optimizing its asset utilization to sustain or enhance its revenue generation capabilities.
Peer comparison
Dec 31, 2024