Cognizant Technology Solutions Corp Class A (CTSH)
Cash ratio
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 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 | 2,645,000 | 2,343,000 | 1,660,000 | 950,000 |
| Short-term investments | US$ in thousands | 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 | 779,000 | 734,000 | 1,343,000 | 2,718,000 |
| 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 |
| Cash ratio | 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 | 1.15 | 1.05 | 1.06 | 1.35 |
December 31, 2023 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($2,621,000K
+ $14,000K)
÷ $3,333,000K
= 0.79
The cash ratio of Cognizant Technology Solutions Corp. has shown slight fluctuations over the past eight quarters. The ratio ranged from 1.03 to 1.13, indicating that the company has consistently maintained a healthy level of cash reserves relative to its current liabilities.
A cash ratio above 1.0 suggests that the company has sufficient liquid assets to cover its short-term obligations. Cognizant's cash ratio has generally been above this threshold, which indicates that the company has a strong ability to meet its immediate financial commitments without relying heavily on external sources of funding.
Overall, the trend in Cognizant's cash ratio demonstrates that the company has been effectively managing its liquidity position, which is crucial for financial stability and flexibility. It suggests that Cognizant has a prudent approach to cash management, ensuring it can navigate unforeseen circumstances or capitalize on strategic opportunities.
Peer comparison
Dec 31, 2023