Cognizant Technology Solutions Corp Class A (CTSH)

Gross profit margin

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Gross profit	US$ in thousands	2,689,000	2,968,000	2,826,000	2,114,000	2,396,000
Revenue	US$ in thousands	19,353,000	19,428,000	18,507,000	16,652,000	16,783,000
Gross profit margin		13.89%	15.28%	15.27%	12.70%	14.28%

December 31, 2023 calculation

Gross profit margin = Gross profit ÷ Revenue
= $2,689,000K ÷ $19,353,000K
= 13.89%

Cognizant Technology Solutions Corp.'s gross profit margin has exhibited a declining trend over the past five years. The margin decreased from 36.64% in 2019 to 34.56% in 2023. This indicates a decrease in the proportion of revenue remaining after accounting for the cost of goods sold. The declining gross profit margin may suggest challenges in managing production costs or pricing strategies. Further analysis of the company's cost structure and competitive positioning may be necessary to understand the factors driving this trend and to identify potential areas for improvement.