Cognizant Technology Solutions Corp Class A (CTSH)
Working capital 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 current assets | US$ in thousands | 7,504,000 | 7,506,000 | 7,266,000 | 7,342,000 | 6,851,000 |
| Total current liabilities | US$ in thousands | 3,585,000 | 3,333,000 | 3,347,000 | 3,529,000 | 3,540,000 |
| Working capital turnover | 5.04 | 4.64 | 4.96 | 4.85 | 5.03 |
December 31, 2024 calculation
Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $19,736,000K ÷ ($7,504,000K – $3,585,000K)
= 5.04
The working capital turnover ratio of Cognizant Technology Solutions Corp Class A has displayed fluctuations over the past five years. Starting at 5.03 in December 2020, the ratio decreased to 4.85 by December 2021, then slightly increased to 4.96 in December 2022. However, in the following year, it decreased notably to 4.64 by December 2023. Subsequently, the ratio improved to 5.04 by December 2024. Overall, the company's ability to efficiently utilize its working capital to generate sales has shown variability, with periods of improvement and decline. It is important for stakeholders to assess the reasons behind these fluctuations in order to gain a deeper understanding of Cognizant's operational efficiency and financial management.
Peer comparison
Dec 31, 2024