Cognizant Technology Solutions Corp Class A (CTSH)

Operating return on assets (Operating ROA)

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Operating income	US$ in thousands	2,892,000	2,689,000	2,968,000	2,826,000	2,114,000
Total assets	US$ in thousands	19,966,000	18,483,000	17,852,000	17,852,000	16,923,000
Operating ROA		14.48%	14.55%	16.63%	15.83%	12.49%

December 31, 2024 calculation

Operating ROA = Operating income ÷ Total assets
= $2,892,000K ÷ $19,966,000K
= 14.48%

Cognizant Technology Solutions Corp Class A has shown a consistent improvement in its operating return on assets (operating ROA) over the past five years. The company's operating ROA increased from 12.49% as of December 31, 2020, to 15.83% as of December 31, 2021. This trend continued with further growth, reaching 16.63% as of December 31, 2022, indicating efficient asset utilization to generate operating income.

However, there was a slight decline in operating ROA to 14.55% as of December 31, 2023, followed by a marginal decrease to 14.48% as of December 31, 2024. Despite the slight dip in the most recent year, the company has maintained a relatively strong operating ROA performance, showcasing sound operational efficiency in generating profits relative to its total assets.

Overall, Cognizant Technology Solutions Corp Class A's operating ROA demonstrates a positive trajectory with some fluctuations, suggesting effective management of assets to drive profitability over the analyzed period.