Cognizant Technology Solutions Corp Class A (CTSH)
Quick 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 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 | 2,645,000 | 2,343,000 | 1,660,000 | 950,000 |
| Short-term investments | US$ in thousands | 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 | 779,000 | 734,000 | 1,343,000 | 2,718,000 |
| Receivables | US$ in thousands | 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 | 3,256,000 | 3,438,000 | 3,386,000 | 3,377,000 |
| 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 |
| Quick ratio | 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 | 2.24 | 2.23 | 2.26 | 2.59 |
December 31, 2023 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($2,621,000K
+ $14,000K
+ $3,849,000K)
÷ $3,333,000K
= 1.95
The quick ratio provides insights into the short-term liquidity position of Cognizant Technology Solutions Corp. The quick ratio is calculated by dividing quick assets (current assets excluding inventory) by current liabilities.
Analyzing the quick ratio data from Q1 2022 to Q4 2023, we observe a relatively stable trend ranging between 2.17 and 2.27. This indicates that the company has consistently maintained a healthy level of liquid assets relative to its current liabilities during this period.
A quick ratio above 1 suggests that Cognizant Technology Solutions Corp. has more than enough quick assets to cover its short-term obligations. A quick ratio in the range of 2.17 to 2.27 implies a strong liquidity position, signaling the company's ability to meet its short-term financial obligations without being heavily reliant on selling inventory.
Overall, the consistent quick ratio above 1 and within the 2.17 to 2.27 range demonstrates Cognizant Technology Solutions Corp.'s sound liquidity management and suggests a low risk of liquidity issues in the near term. However, it is important to complement this analysis with a broader assessment of the company's financial health and operational efficiency for a comprehensive evaluation.
Peer comparison
Dec 31, 2023