Cognizant Technology Solutions Corp Class A (CTSH)
Profitability ratios
Return on sales
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross profit margin | 14.65% | 14.76% | 14.60% | 13.90% | 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% |
| Operating profit margin | 14.65% | 14.76% | 14.60% | 13.90% | 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% |
| Pretax margin | 14.96% | 15.25% | 15.18% | 14.41% | 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% |
| Net profit margin | 11.35% | 11.60% | 11.39% | 10.84% | 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% |
Cognizant Technology Solutions Corp Class A has demonstrated varying profitability margins over the period covered by the data.
- The gross profit margin has shown a slight decrease from 16.24% as of March 2020 to 14.65% as of December 2024.
- The operating profit margin followed a similar trend, starting at 14.75% in March 2020 and ending at 14.65% in December 2024.
- The pretax margin has fluctuated over the years, with a peak of 15.72% in September 2022 before decreasing to 14.96% in December 2024.
- The net profit margin, which reflects the company's bottom line profitability, has ranged from 8.36% in December 2020 to 11.60% in September 2024.
Overall, Cognizant Technology Solutions Corp Class A has managed to maintain relatively stable profitability levels, with some fluctuations observed in different profitability ratios over the period under review.
Return on investment
| 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 return on assets (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% |
| Return on assets (ROA) | 11.22% | 11.17% | 11.81% | 11.36% | 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% |
| Return on total capital | 19.59% | 19.23% | 20.49% | 20.05% | 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% |
| Return on equity (ROE) | 15.55% | 15.58% | 15.79% | 15.51% | 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% |
Cognizant Technology Solutions Corp Class A has shown an improving trend in its profitability ratios over the analyzed periods.
1. Operating return on assets (Operating ROA) has shown an increasing trend from 14.30% as of March 31, 2020, to 17.37% as of September 30, 2022, with a slight dip to 14.21% as of September 30, 2024. This indicates the company's ability to generate operating income from its assets has generally improved.
2. Return on assets (ROA) has also demonstrated a positive trend, increasing from 10.14% as of March 31, 2020, to 11.22% as of December 31, 2024, with some fluctuations in between. This ratio signifies the company's efficiency in generating profits relative to its total assets.
3. Return on total capital has exhibited an increasing trend, rising from 18.68% as of March 31, 2020, to 19.59% as of December 31, 2024. This ratio reflects the company's ability to generate returns for both debt and equity holders on their invested capital.
4. Return on equity (ROE) has shown consistent improvement from 16.66% as of March 31, 2020, to 15.55% as of December 31, 2024. This ratio highlights the company's ability to generate returns for its shareholders based on their equity investment.
Overall, the upward trend in these profitability ratios indicates that Cognizant Technology Solutions Corp Class A has been effective in improving its operational efficiency and generating returns for its investors over the analyzed periods.