Cognizant Technology Solutions Corp Class A (CTSH)

Return on assets (ROA)

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Net income	US$ in thousands	2,126,000	2,290,000	2,137,000	1,392,000	1,842,000
Total assets	US$ in thousands	18,483,000	17,852,000	17,852,000	16,923,000	16,204,000
ROA		11.50%	12.83%	11.97%	8.23%	11.37%

December 31, 2023 calculation

ROA = Net income ÷ Total assets
= $2,126,000K ÷ $18,483,000K
= 11.50%

The return on assets (ROA) of Cognizant Technology Solutions Corp. has shown some fluctuations over the past five years. In 2023, the ROA decreased to 11.50% from 12.83% in 2022, indicating a slight decline in the company's ability to generate profit from its assets. However, the ROA in 2023 remained relatively strong compared to the levels in 2020 and 2019.

Overall, Cognizant's ROA performance over the past five years has been generally positive, with the company consistently generating returns on its assets above 8%. This suggests efficient utilization of assets to generate profit, although there was a slight dip in 2023 compared to the previous year. Investors and stakeholders may want to further investigate the reasons behind this decline and assess the company's asset management strategies moving forward.