Cognizant Technology Solutions Corp Class A (CTSH)
Quick 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 2,231,000 | 2,013,000 | 2,193,000 | 2,231,000 | 2,621,000 | 2,204,000 | 2,055,000 | 2,458,000 | 2,191,000 | 2,042,000 | 1,768,000 | 2,192,000 | 1,792,000 | 1,664,000 | 1,368,000 | 1,973,000 | 2,680,000 | 4,436,000 | 4,422,000 | 3,886,000 |
| Short-term investments | US$ in thousands | 12,000 | 12,000 | 12,000 | 12,000 | 14,000 | 164,000 | 40,000 | 23,000 | 310,000 | 689,000 | 552,000 | 127,000 | 927,000 | 749,000 | 482,000 | 185,000 | 44,000 | 139,000 | 160,000 | 396,000 |
| Receivables | US$ in thousands | 4,059,000 | 4,206,000 | 3,973,000 | 3,822,000 | 3,849,000 | 3,807,000 | 3,755,000 | 3,718,000 | 3,796,000 | 3,686,000 | 3,785,000 | 3,663,000 | 3,557,000 | 3,510,000 | 3,419,000 | 3,232,000 | 3,087,000 | 3,118,000 | 3,208,000 | 3,220,000 |
| 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 |
| Quick ratio | 1.76 | 1.84 | 2.10 | 2.01 | 1.95 | 1.94 | 1.91 | 1.87 | 1.88 | 1.99 | 1.94 | 1.88 | 1.78 | 1.78 | 1.66 | 1.71 | 1.64 | 2.33 | 2.43 | 2.61 |
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 shown a fluctuating trend over the period from March 31, 2020, to December 31, 2024. The quick ratio, which measures the company's ability to meet its short-term obligations with its most liquid assets, was at a healthy level above 2 for most of the period, indicating a strong ability to cover its current liabilities with its quick assets.
However, there was a notable decrease in the quick ratio from December 31, 2020, to March 31, 2021, where it fell to 1.64, potentially signaling a tightening of liquidity or slower collections of receivables during that period. The quick ratio then saw some fluctuations but remained generally around the 1.7 to 2.1 range until December 31, 2024. Overall, the company maintained a relatively stable quick ratio above 1.5 throughout the period, indicating a favorable liquidity position to meet its short-term financial obligations.
Peer comparison
Dec 31, 2024