Cognizant Technology Solutions Corp Class A (CTSH)
Cash ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 2,231,000 | 2,621,000 | 2,191,000 | 1,792,000 | 2,680,000 |
| Short-term investments | US$ in thousands | 12,000 | 14,000 | 310,000 | 927,000 | 44,000 |
| Total current liabilities | US$ in thousands | 3,585,000 | 3,333,000 | 3,347,000 | 3,529,000 | 3,540,000 |
| Cash ratio | 0.63 | 0.79 | 0.75 | 0.77 | 0.77 |
December 31, 2024 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($2,231,000K
+ $12,000K)
÷ $3,585,000K
= 0.63
The cash ratio for Cognizant Technology Solutions Corp Class A has been relatively stable over the years, ranging between 0.63 and 0.79. This ratio indicates the company's ability to cover its short-term liabilities with its available cash and cash equivalents.
The cash ratio of 0.77 as of December 31, 2020 and December 31, 2021 suggests that for every dollar of current liabilities, the company had $0.77 of cash and cash equivalents on hand. This indicates a healthy liquidity position during these years.
The slight decrease to 0.75 as of December 31, 2022 may suggest a potential decrease in the company's ability to cover its short-term obligations with cash alone, although it remains above 0.5, which is considered a benchmark for a healthy liquidity position.
The increase to 0.79 as of December 31, 2023 indicates an improvement in the company's liquidity position, as it now has more cash on hand relative to its current liabilities.
However, the decrease to 0.63 as of December 31, 2024 may raise some concerns about the company's liquidity management or its ability to meet short-term obligations with available cash and cash equivalents. It would be important to further analyze the reasons behind this significant decrease.
Overall, the cash ratio provides insights into Cognizant Technology Solutions Corp Class A's liquidity position over the years, highlighting fluctuations that may warrant closer examination for potential underlying reasons.
Peer comparison
Dec 31, 2024