Cognizant Technology Solutions Corp Class A (CTSH)

Operating return on assets (Operating ROA)

		Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020
Operating income (ttm)	US$ in thousands	2,892,000	2,865,000	2,813,000	2,682,000	2,689,000	2,651,000	2,763,000	2,946,000	2,968,000	3,014,000	2,945,000	2,881,000	2,826,000	2,559,000	2,433,000	2,204,000	2,114,000	2,275,000	2,341,000	2,493,000
Total assets	US$ in thousands	19,966,000	20,164,000	18,580,000	18,408,000	18,483,000	18,079,000	17,967,000	18,147,000	17,852,000	17,347,000	17,258,000	17,434,000	17,852,000	17,232,000	16,829,000	16,660,000	16,923,000	18,787,000	18,216,000	17,429,000
Operating ROA		14.48%	14.21%	15.14%	14.57%	14.55%	14.66%	15.38%	16.23%	16.63%	17.37%	17.06%	16.53%	15.83%	14.85%	14.46%	13.23%	12.49%	12.11%	12.85%	14.30%

December 31, 2024 calculation

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

The operating return on assets (operating ROA) of Cognizant Technology Solutions Corp Class A has shown a fluctuating trend over the past few years. It started at 14.30% as of March 31, 2020, decreased to 12.11% by September 30, 2020, and then gradually increased to reach its peak of 17.37% on September 30, 2022.

After the peak, the operating ROA experienced a slight decline, dropping to 14.21% by September 30, 2024. Although there were fluctuations, overall, the operating ROA remained relatively stable around the mid-teens, indicating that the company has been effectively utilizing its assets to generate operating income.

It is crucial for stakeholders to monitor fluctuations in the operating ROA closely to assess the efficiency of Cognizant Technology Solutions Corp Class A in generating operating profits relative to its asset base.