Cognizant Technology Solutions Corp Class A (CTSH)
Current 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Total current assets | US$ in thousands | 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 | 7,611,000 | 7,391,000 | 7,206,000 | 7,883,000 |
| 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 |
| Current ratio | 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 | 2.55 | 2.53 | 2.55 | 2.90 |
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 shown some fluctuations over the past eight quarters, ranging from 2.17 to 2.27. Overall, the current ratio has generally remained above 2, indicating that the company has sufficient current assets to cover its current liabilities. The company's ability to maintain a current ratio consistently above 2 suggests a strong liquidity position and the ability to meet short-term obligations comfortably.
The current ratio increased in Q3 2023 to 2.23 from 2.18 in Q1 2023, indicating an improvement in the company's ability to cover its short-term liabilities with its current assets during that period. While there was slight variability in the current ratio throughout the quarters, the values remained relatively close to each other, indicating consistency in the company's liquidity management.
It is essential to continue monitoring the current ratio to ensure that the company maintains its ability to meet its short-term obligations effectively. Overall, based on the current ratio trend, Cognizant Technology Solutions Corp. appears to have a healthy liquidity position in recent quarters.
Peer comparison
Dec 31, 2023