Cognizant Technology Solutions Corp Class A (CTSH)

Return on assets (ROA)

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Net income	US$ in thousands	2,240,000	2,126,000	2,290,000	2,137,000	1,392,000
Total assets	US$ in thousands	19,966,000	18,483,000	17,852,000	17,852,000	16,923,000
ROA		11.22%	11.50%	12.83%	11.97%	8.23%

December 31, 2024 calculation

ROA = Net income ÷ Total assets
= $2,240,000K ÷ $19,966,000K
= 11.22%

Cognizant Technology Solutions Corp Class A has shown a gradual improvement in its return on assets (ROA) over the years based on the data provided. The company's ROA has increased from 8.23% as of December 31, 2020, to 11.97% as of December 31, 2021, reflecting a positive trend in utilizing its assets to generate profits.

Further, the ROA continued to rise to 12.83% by December 31, 2022, indicating efficient asset management and profitability. However, there was a slight decline in ROA to 11.50% by December 31, 2023, followed by a marginal decrease to 11.22% by December 31, 2024.

Overall, the company's ROA has generally been improving, indicating that Cognizant Technology Solutions Corp Class A has been effectively using its assets to generate earnings, albeit with some fluctuations in recent years. It is essential for the company to monitor and manage its assets efficiently to sustain or improve its profitability over time.