Cognizant Technology Solutions Corp Class A (CTSH)
Current 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Total current assets | US$ in thousands | 7,504,000 | 7,548,000 | 7,245,000 | 7,086,000 | 7,506,000 | 7,127,000 | 6,951,000 | 7,228,000 | 7,266,000 | 7,317,000 | 7,023,000 | 7,077,000 | 7,342,000 | 6,995,000 | 6,451,000 | 6,595,000 | 6,851,000 | 8,619,000 | 8,531,000 | 8,325,000 |
| 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 |
| Current ratio | 2.09 | 2.23 | 2.46 | 2.35 | 2.25 | 2.23 | 2.27 | 2.18 | 2.17 | 2.27 | 2.23 | 2.22 | 2.08 | 2.11 | 2.03 | 2.09 | 1.94 | 2.61 | 2.66 | 2.90 |
December 31, 2024 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $7,504,000K ÷ $3,585,000K
= 2.09
Cognizant Technology Solutions Corp Class A's current ratio has been relatively stable over the past few years, ranging from a low of 1.94 on December 31, 2020, to a high of 2.46 on June 30, 2024. The current ratio measures the company's ability to cover its short-term obligations with its current assets. A higher current ratio indicates a healthier liquidity position, as the company has more current assets to cover its current liabilities.
The current ratio improved from 1.94 on December 31, 2020, to 2.46 on June 30, 2024, indicating a strengthening liquidity position during this period. However, it dipped to 2.09 on December 31, 2024, which could be a point of concern if it continues to decline in the future. Overall, Cognizant Technology Solutions Corp Class A has maintained a healthy current ratio above 2 for most of the period under review, suggesting that it is well-positioned to meet its short-term obligations.
Peer comparison
Dec 31, 2024