Cognizant Technology Solutions Corp Class A (CTSH)
Quick ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 2,231,000 | 2,621,000 | 2,191,000 | 1,792,000 | 2,680,000 |
| Short-term investments | US$ in thousands | 12,000 | 14,000 | 310,000 | 927,000 | 44,000 |
| Receivables | US$ in thousands | 4,059,000 | 3,849,000 | 3,796,000 | 3,557,000 | 3,087,000 |
| Total current liabilities | US$ in thousands | 3,585,000 | 3,333,000 | 3,347,000 | 3,529,000 | 3,540,000 |
| Quick ratio | 1.76 | 1.95 | 1.88 | 1.78 | 1.64 |
December 31, 2024 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($2,231,000K
+ $12,000K
+ $4,059,000K)
÷ $3,585,000K
= 1.76
The quick ratio of Cognizant Technology Solutions Corp Class A has been showing a generally increasing trend over the past five years. Starting at 1.64 on December 31, 2020, the quick ratio has consistently improved to reach 1.76 on December 31, 2024. This indicates that the company has been able to enhance its ability to meet its short-term obligations using its most liquid assets. Although there was a slight dip in the quick ratio in 2024 compared to the previous year, the overall trend suggests that the company has maintained a healthy liquidity position over the years. A quick ratio above 1 implies that Cognizant Technology Solutions Corp Class A has an adequate level of liquid assets to cover its short-term liabilities, providing a buffer against potential financial distress.
Peer comparison
Dec 31, 2024