Cognizant Technology Solutions Corp Class A (CTSH)
Return on equity (ROE)
| 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 stockholders’ equity | US$ in thousands | 13,227,000 | 12,309,000 | 11,991,000 | 10,836,000 | 11,022,000 |
| ROE | 16.07% | 18.60% | 17.82% | 12.85% | 16.71% |
December 31, 2023 calculation
ROE = Net income ÷ Total stockholders’ equity
= $2,126,000K ÷ $13,227,000K
= 16.07%
The return on equity (ROE) for Cognizant Technology Solutions Corp. has shown fluctuating trends over the past five years. In 2023, the ROE decreased to 16.07% from 18.60% in 2022, indicating a slight decrease in the company's ability to generate profits from shareholders' equity. Despite this decline, the ROE in 2023 remains above the levels recorded in 2020 and 2019.
Overall, Cognizant's ROE has demonstrated relative stability and remained above 12% for the past five years, indicating that the company has been effectively utilizing shareholders' equity to generate profits. However, there may be room for improvement to enhance shareholder value and strengthen the company's financial performance. Additional insights from the company's financial statements and industry comparisons would be beneficial for a more comprehensive analysis.
Peer comparison
Dec 31, 2023