Cognizant Technology Solutions Corp Class A (CTSH)

Return on assets (ROA)

		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
Net income (ttm)	US$ in thousands	2,126,000	2,089,000	2,193,000	2,307,000	2,290,000	2,345,000	2,260,000	2,195,000	2,137,000	1,877,000	1,681,000	1,530,000	1,392,000	1,471,000	1,620,000	1,768,000	1,842,000	2,095,000	2,075,000	2,022,000
Total assets	US$ in thousands	18,483,000	18,079,000	17,967,000	18,147,000	17,852,000	17,347,000	17,258,000	17,434,000	17,852,000	17,232,000	16,829,000	16,660,000	16,923,000	18,787,000	18,216,000	17,429,000	16,204,000	15,844,000	15,517,000	16,096,000
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%

December 31, 2023 calculation

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

Cognizant Technology Solutions Corp.'s return on assets (ROA) has exhibited a general downward trend over the past eight quarters. ROA decreased from 13.52% in Q3 2022 to 11.50% in Q4 2023. However, it is important to note that the company's ROA remained above 10% throughout this period, indicating a consistent ability to generate profits relative to its total assets.

The ROA peaked at 13.52% in Q3 2022 before gradually declining. This decline may suggest that the company's asset utilization or profitability has slightly decreased over time. Despite the downward trend, the ROA values in each quarter are relatively strong, indicating that Cognizant Technology Solutions Corp. has been efficient in generating earnings from its assets.

Overall, while there has been a slight decline in ROA over the period, Cognizant Technology Solutions Corp. continues to demonstrate solid performance in terms of generating profits relative to its asset base.