Cognizant Technology Solutions Corp Class A (CTSH)
Pretax margin
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before tax but after interest (EBT) | US$ in thousands | 2,953,000 | 2,794,000 | 3,020,000 | 2,830,000 | 2,096,000 |
| Revenue | US$ in thousands | 19,736,000 | 19,353,000 | 19,428,000 | 18,507,000 | 16,652,000 |
| Pretax margin | 14.96% | 14.44% | 15.54% | 15.29% | 12.59% |
December 31, 2024 calculation
Pretax margin = EBT ÷ Revenue
= $2,953,000K ÷ $19,736,000K
= 14.96%
Cognizant Technology Solutions Corp Class A has shown a positive trend in its pretax margin over the past five years. The pretax margin increased from 12.59% as of December 31, 2020, to 15.29% as of December 31, 2021, indicating improved profitability before taxes. This positive momentum continued with further enhancements in the pretax margin to 15.54% as of December 31, 2022. However, there was a slight dip to 14.44% as of December 31, 2023, before recovering to 14.96% as of December 31, 2024.
Overall, the company has demonstrated a strong ability to generate profits relative to its revenue before accounting for income taxes. The variations in the pretax margin over the years might be influenced by factors such as changing operating expenses, revenue growth rates, and efficiency in cost management. Monitoring these fluctuations can provide insights into the company's financial performance and management effectiveness.
Peer comparison
Dec 31, 2024