Cognizant Technology Solutions Corp Class A (CTSH)
Working capital turnover
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 19,736,000 | 19,412,000 | 19,265,000 | 19,301,000 | 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 |
| Total current assets | US$ in thousands | 7,504,000 | 7,548,000 | 7,245,000 | 7,086,000 | 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 |
| Total current liabilities | US$ in thousands | 3,585,000 | 3,388,000 | 2,946,000 | 3,012,000 | 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 |
| Working capital turnover | 5.04 | 4.67 | 4.48 | 4.74 | 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 |
December 31, 2024 calculation
Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $19,736,000K ÷ ($7,504,000K – $3,585,000K)
= 5.04
The working capital turnover ratio for Cognizant Technology Solutions Corp Class A has shown fluctuations over the years based on the provided data. The ratio indicates the efficiency of the company in utilizing its working capital to generate sales revenue.
From March 31, 2020, to December 31, 2020, the ratio increased from 3.10 to 5.03, which suggests that the company was able to generate more sales revenue relative to its working capital during that period. This could indicate improved efficiency in managing working capital.
Subsequently, the ratio fluctuated between 4.85 and 5.33 from March 31, 2021, to June 30, 2021, showing a relatively stable performance in utilizing working capital for revenue generation.
From September 30, 2021, to December 31, 2024, the ratio ranged between 4.48 and 5.04, indicating that the company maintained a moderate level of efficiency in utilizing its working capital to generate sales revenue during this period.
Overall, the working capital turnover ratio for Cognizant Technology Solutions Corp Class A demonstrates varying levels of efficiency in managing working capital to drive sales revenue. The company should continue monitoring and optimizing this ratio to ensure effective utilization of its resources for sustained growth and profitability.
Peer comparison
Dec 31, 2024