Cognizant Technology Solutions Corp Class A (CTSH)
Profitability ratios
Return on sales
| 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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross profit margin | 13.89% | 13.64% | 14.25% | 15.17% | 15.28% | 15.56% | 15.30% | 15.22% | 15.27% | 14.28% | 13.97% | 13.10% | 12.70% | 13.58% | 14.73% | 16.24% | 32.19% | 48.89% | 88.88% | 128.68% |
| Operating profit margin | 13.89% | 13.64% | 14.25% | 15.17% | 15.28% | 15.56% | 15.30% | 15.22% | 15.27% | 14.28% | 13.97% | 13.10% | 12.70% | 13.58% | 13.97% | 14.75% | 14.62% | 15.16% | 15.77% | 16.22% |
| Pretax margin | 14.44% | 14.18% | 14.70% | 15.58% | 15.54% | 15.72% | 15.39% | 15.31% | 15.29% | 14.29% | 14.09% | 13.38% | 12.59% | 13.11% | 13.31% | 14.27% | 14.81% | 16.43% | 16.63% | 16.45% |
| Net profit margin | 10.99% | 10.75% | 11.31% | 11.88% | 11.79% | 12.11% | 11.74% | 11.59% | 11.55% | 10.48% | 9.65% | 9.09% | 8.36% | 8.78% | 9.67% | 10.46% | 10.98% | 12.60% | 12.61% | 12.39% |
Cognizant Technology Solutions Corp.'s profitability ratios show a consistent performance over the past eight quarters. The gross profit margin has been relatively stable, ranging from 34.47% to 36.67%, indicating the company effectively manages its cost of goods sold.
Similarly, the operating profit margin has also shown stability, hovering around 14.61% to 15.56%, demonstrating efficient management of operating expenses. The pretax margin has followed a similar trend, with a slight variation between 14.18% and 15.72%, indicating effective management of both operating and non-operating expenses.
The net profit margin, which reflects the company's bottom-line profitability after all expenses have been considered, has shown a consistent performance ranging from 10.75% to 12.11%. This indicates that Cognizant is able to generate a decent level of profit relative to its revenue despite various economic conditions.
Overall, Cognizant Technology Solutions Corp. has maintained stable and healthy profitability ratios, reflecting sound financial management and operational efficiency.
Return on investment
| 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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 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% | 15.14% | 15.91% | 16.73% | 16.45% |
| Return on assets (ROA) | 11.50% | 11.55% | 12.21% | 12.71% | 12.83% | 13.52% | 13.10% | 12.59% | 11.97% | 10.89% | 9.99% | 9.18% | 8.23% | 7.83% | 8.89% | 10.14% | 11.37% | 13.22% | 13.37% | 12.56% |
| Return on total capital | 20.49% | 20.70% | 21.32% | 22.96% | 23.47% | 24.27% | 23.67% | 23.09% | 22.50% | 21.10% | 20.81% | 19.43% | 18.44% | 16.41% | 16.86% | 18.68% | 21.42% | 24.19% | 24.51% | 22.87% |
| Return on equity (ROE) | 16.07% | 16.22% | 17.00% | 18.22% | 18.60% | 19.61% | 18.91% | 18.33% | 17.82% | 16.26% | 15.00% | 13.86% | 12.85% | 13.20% | 14.76% | 16.66% | 16.71% | 19.58% | 19.66% | 18.16% |
Cognizant Technology Solutions Corp.'s profitability ratios show a consistent and healthy performance over the quarters presented. The operating return on assets (Operating ROA) has remained relatively stable, ranging from 15.71% to 16.63%, indicating the company's efficiency in generating operating income relative to its total assets.
The Return on Assets (ROA) ratio also demonstrates a stable trend, with values ranging from 11.50% to 12.83%. This ratio reflects Cognizant's ability to generate profits from its total assets, showing a consistent performance in utilizing its assets effectively to generate income.
The Return on Total Capital and Return on Equity (ROE) ratios show a similar pattern, with values increasing from Q1 2022 to Q4 2023. These ratios indicate the company's overall profitability and efficiency in utilizing both equity and total capital to generate returns for its shareholders.
Overall, Cognizant Technology Solutions Corp. has exhibited strong profitability ratios over the periods provided, showcasing efficient asset utilization and solid returns for its investors.