Cognizant Technology Solutions Corp Class A (CTSH)

Return on assets (ROA)

		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
Net income (ttm)	US$ in thousands	2,240,000	2,252,000	2,195,000	2,092,000	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
Total assets	US$ in thousands	19,966,000	20,164,000	18,580,000	18,408,000	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
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%

December 31, 2024 calculation

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

Cognizant Technology Solutions Corp Class A has shown a steady improvement in its return on assets (ROA) over the analyzed period from March 31, 2020, to December 31, 2024. The ROA started at 10.14% in March 2020, declined slightly to 7.83% by September 30, 2020, but then started to trend upwards.

The ROA increased to 11.97% by December 31, 2021, showing a significant recovery. It continued to rise steadily to reach its peak at 13.52% on September 30, 2022. Subsequently, there was a slight decline, but the ROA remained above 11% consistently until December 31, 2024.

Overall, Cognizant Technology Solutions Corp Class A's ROA demonstrates a positive trajectory, indicating that the company has been effectively utilizing its assets to generate profits and create value for its shareholders. The increasing trend in ROA over the analyzed period suggests improved operational efficiency and effective management of the company's assets.