Cognizant Technology Solutions Corp Class A (CTSH)
Current ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Total current assets | US$ in thousands | 7,506,000 | 7,266,000 | 7,342,000 | 6,851,000 | 7,611,000 |
| Total current liabilities | US$ in thousands | 3,333,000 | 3,347,000 | 3,529,000 | 3,540,000 | 2,983,000 |
| Current ratio | 2.25 | 2.17 | 2.08 | 1.94 | 2.55 |
December 31, 2023 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $7,506,000K ÷ $3,333,000K
= 2.25
The current ratio of Cognizant Technology Solutions Corp. has fluctuated over the past five years. It increased steadily from 1.94 in 2020 to 2.25 in 2023, indicating a strengthening liquidity position. This improvement suggests that the company has a sufficient level of current assets relative to its current liabilities to meet its short-term obligations. However, the ratio dipped in 2022 to 2.17 before rising again in 2023. Overall, the current ratio has generally remained above 2, which is often considered a healthy level, providing a buffer for unexpected financial challenges.
Peer comparison
Dec 31, 2023