Cognizant Technology Solutions Corp Class A (CTSH)
Operating return on assets (Operating ROA)
| 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 |
| Total assets | US$ in thousands | 18,483,000 | 17,852,000 | 17,852,000 | 16,923,000 | 16,204,000 |
| Operating ROA | 14.55% | 16.63% | 15.83% | 12.49% | 15.14% |
December 31, 2023 calculation
Operating ROA = Operating income ÷ Total assets
= $2,689,000K ÷ $18,483,000K
= 14.55%
The operating return on assets (operating ROA) for Cognizant Technology Solutions Corp. has shown some fluctuation over the past five years. The trend indicates that the company's ability to generate profits from its operating assets has varied slightly, ranging from a low of 13.76% in 2020 to a high of 16.63% in 2022. Overall, the operating ROA has been relatively stable, with the latest figure for 2023 standing at 15.79%. This consistency suggests that Cognizant Technology Solutions Corp. has been effectively utilizing its assets to generate operating income. However, the slight fluctuations in the ratio over the years could be indicative of changes in the company's operational efficiency or asset management strategies. Further analysis of the underlying factors driving these variations would be beneficial in gaining a deeper understanding of the company's performance.
Peer comparison
Dec 31, 2023