Cognizant Technology Solutions Corp Class A (CTSH)
Working capital 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 |
| Total current assets | US$ in thousands | 7,506,000 | 7,127,000 | 6,951,000 | 7,228,000 | 7,266,000 | 7,317,000 | 7,023,000 | 7,077,000 | 7,342,000 | 6,995,000 | 6,451,000 | 6,595,000 | 6,851,000 | 8,619,000 | 8,531,000 | 8,325,000 | 7,611,000 | 7,391,000 | 7,206,000 | 7,883,000 |
| Total current liabilities | US$ in thousands | 3,333,000 | 3,191,000 | 3,056,000 | 3,321,000 | 3,347,000 | 3,223,000 | 3,153,000 | 3,186,000 | 3,529,000 | 3,319,000 | 3,183,000 | 3,150,000 | 3,540,000 | 3,296,000 | 3,212,000 | 2,872,000 | 2,983,000 | 2,919,000 | 2,824,000 | 2,720,000 |
| Working capital turnover | 4.64 | 4.94 | 4.98 | 4.97 | 4.96 | 4.73 | 4.97 | 4.87 | 4.85 | 4.87 | 5.33 | 4.88 | 5.03 | 3.15 | 3.15 | 3.10 | 3.63 | 3.72 | 3.76 | 3.16 |
December 31, 2023 calculation
Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $19,353,000K ÷ ($7,506,000K – $3,333,000K)
= 4.64
The working capital turnover ratio for Cognizant Technology Solutions Corp. has been relatively stable over the past eight quarters, ranging from 4.64 to 4.98. This ratio indicates that the company is effectively utilizing its working capital to generate revenue.
A higher working capital turnover ratio suggests that the company is efficiently managing its working capital to support its operations and sales activities. Cognizant's ratios generally fall within a narrow range, indicating consistent efficiency in converting its working capital into revenue.
Overall, the trend in Cognizant's working capital turnover ratio shows that the company is effectively managing its working capital to support its business activities and generate sales. However, further analysis in conjunction with other financial metrics would provide a more comprehensive understanding of the company's financial performance and efficiency.
Peer comparison
Dec 31, 2023