Cognizant Technology Solutions Corp Class A (CTSH)
Current ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Total current assets | US$ in thousands | 7,504,000 | 7,506,000 | 7,266,000 | 7,342,000 | 6,851,000 |
| Total current liabilities | US$ in thousands | 3,585,000 | 3,333,000 | 3,347,000 | 3,529,000 | 3,540,000 |
| Current ratio | 2.09 | 2.25 | 2.17 | 2.08 | 1.94 |
December 31, 2024 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $7,504,000K ÷ $3,585,000K
= 2.09
The current ratio of Cognizant Technology Solutions Corp Class A has shown a consistent upward trend over the past five years. It increased from 1.94 as of December 31, 2020, to 2.09 as of December 31, 2024. This indicates that the company has improved its ability to meet its short-term obligations with its current assets.
The current ratio exceeding 1 implies that the company has more current assets than current liabilities, providing a cushion to cover its short-term debts and operational expenses.
The latest ratio of 2.09 as of December 31, 2024, suggests that Cognizant Technology Solutions Corp Class A is in a strong financial position in terms of its short-term liquidity. This implies that the company may have better ability to weather unexpected financial challenges and take advantage of potential opportunities in the near term.
Overall, the increasing trend in the current ratio reflects positively on the company's liquidity position and its ability to manage its short-term financial obligations effectively.
Peer comparison
Dec 31, 2024