Cognizant Technology Solutions Corp Class A (CTSH)
Cash ratio
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 2,231,000 | 2,013,000 | 2,193,000 | 2,231,000 | 2,621,000 | 2,204,000 | 2,055,000 | 2,458,000 | 2,191,000 | 2,042,000 | 1,768,000 | 2,192,000 | 1,792,000 | 1,664,000 | 1,368,000 | 1,973,000 | 2,680,000 | 4,436,000 | 4,422,000 | 3,886,000 |
| Short-term investments | US$ in thousands | 12,000 | 12,000 | 12,000 | 12,000 | 14,000 | 164,000 | 40,000 | 23,000 | 310,000 | 689,000 | 552,000 | 127,000 | 927,000 | 749,000 | 482,000 | 185,000 | 44,000 | 139,000 | 160,000 | 396,000 |
| 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 |
| Cash ratio | 0.63 | 0.60 | 0.75 | 0.74 | 0.79 | 0.74 | 0.69 | 0.75 | 0.75 | 0.85 | 0.74 | 0.73 | 0.77 | 0.73 | 0.58 | 0.69 | 0.77 | 1.39 | 1.43 | 1.49 |
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 of Cognizant Technology Solutions Corp Class A has shown a decline over the past few years based on the provided data. The cash ratio measures a company's ability to cover its short-term liabilities with its cash and cash equivalents.
Starting at a relatively healthy level of 1.49 as of March 31, 2020, the ratio gradually decreased to 0.63 by December 31, 2024. This downward trend indicates a potential deterioration in the company's ability to meet its short-term obligations solely with its available cash resources.
While a cash ratio of 1 or higher is generally considered favorable as it suggests the company can cover all its short-term liabilities with cash, a ratio below 1 may indicate a liquidity risk. Cognizant's decreasing cash ratio raises concerns about its liquidity position and ability to manage its short-term financial obligations effectively.
It would be advisable for stakeholders and investors to further analyze the company's cash management practices and monitor its liquidity position closely to ensure financial stability and operational continuity in the future.
Peer comparison
Dec 31, 2024