Cognizant Technology Solutions Corp Class A (CTSH)
Profitability ratios
Return on sales
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Gross profit margin | 14.65% | 13.89% | 15.28% | 15.27% | 12.70% |
| Operating profit margin | 14.65% | 13.89% | 15.28% | 15.27% | 12.70% |
| Pretax margin | 14.96% | 14.44% | 15.54% | 15.29% | 12.59% |
| Net profit margin | 11.35% | 10.99% | 11.79% | 11.55% | 8.36% |
Cognizant Technology Solutions Corp Class A has shown improvements in its profitability ratios over the years based on the provided data.
- Gross profit margin has increased from 12.70% in 2020 to 14.65% in 2024, indicating the company's ability to generate more profit from its revenue after accounting for the cost of goods sold.
- Operating profit margin has followed a similar trend, increasing from 12.70% in 2020 to 14.65% in 2024, showing the company's efficiency in managing its operating expenses.
- Pretax margin has also shown a positive trend, rising from 12.59% in 2020 to 14.96% in 2024. This indicates that the company is effectively managing its pre-tax income relative to its total revenue.
- Net profit margin has improved from 8.36% in 2020 to 11.35% in 2024, reflecting Cognizant's ability to increase its bottom line profitability after accounting for all expenses including taxes.
Overall, the company has demonstrated consistent progress in its profitability margins over the years, which may suggest effective cost management, revenue growth, and operational efficiency.
Return on investment
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 14.48% | 14.55% | 16.63% | 15.83% | 12.49% |
| Return on assets (ROA) | 11.22% | 11.50% | 12.83% | 11.97% | 8.23% |
| Return on total capital | 18.92% | 20.49% | 23.47% | 22.50% | 18.44% |
| Return on equity (ROE) | 15.55% | 16.07% | 18.60% | 17.82% | 12.85% |
Cognizant Technology Solutions Corp Class A has demonstrated a positive trend in profitability ratios over the years.
- Operating return on assets (Operating ROA) increased from 12.49% in December 31, 2020, to 16.63% in December 31, 2022, before slightly decreasing to 14.48% in December 31, 2024. This indicates that the company's operating income generated from its assets improved significantly over this period.
- Return on assets (ROA) also exhibited an upward trend, rising from 8.23% in December 31, 2020, to 12.83% in December 31, 2022. Although there was a slight dip to 11.22% in December 31, 2024, the overall performance in generating profits from its total assets remained strong.
- Return on total capital increased from 18.44% in December 31, 2020, to 23.47% in December 31, 2022, showing efficient utilization of both debt and equity to generate returns. However, it decreased to 18.92% by December 31, 2024.
- Return on equity (ROE) saw a rise from 12.85% in December 31, 2020, to 18.60% in December 31, 2022. Although there was a slight decline in ROE to 15.55% by December 31, 2024, the company's ability to generate profit from shareholders' equity remained relatively stable and healthy.
Overall, Cognizant Technology Solutions Corp Class A's profitability metrics demonstrate consistent and generally positive performance in effectively utilizing its assets, capital, and equity to generate returns for its stakeholders over the evaluated period.