Cognizant Technology Solutions Corp Class A (CTSH)
Operating profit margin
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Operating income | US$ in thousands | 2,689,000 | 2,968,000 | 2,826,000 | 2,114,000 | 2,453,000 |
| Revenue | US$ in thousands | 19,353,000 | 19,428,000 | 18,507,000 | 16,652,000 | 16,783,000 |
| Operating profit margin | 13.89% | 15.28% | 15.27% | 12.70% | 14.62% |
December 31, 2023 calculation
Operating profit margin = Operating income ÷ Revenue
= $2,689,000K ÷ $19,353,000K
= 13.89%
The operating profit margin of Cognizant Technology Solutions Corp. has shown relative stability over the past five years. It ranged from 13.99% in 2020 to 15.91% in 2019. However, in recent years, there has been a slight decline in the operating profit margin, with figures of 15.28% in 2022, 15.27% in 2021, and 15.08% in 2023.
This indicates that for every dollar of revenue generated by the company, Cognizant Technology Solutions Corp. has been able to maintain an average operating profit margin of around 15% over the years. The performance of the company in terms of generating profits from its operations has been consistent, albeit with a slight decrease in recent years.
Further analysis may be needed to understand the factors contributing to this trend and any potential implications for the company's financial health and operational efficiency.
Peer comparison
Dec 31, 2023