Cognizant Technology Solutions Corp Class A (CTSH)

Return on equity (ROE)

		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 stockholders’ equity	US$ in thousands	14,408,000	14,452,000	13,898,000	13,490,000	13,227,000	12,882,000	12,903,000	12,661,000	12,309,000	11,958,000	11,950,000	11,973,000	11,991,000	11,546,000	11,205,000	11,037,000	10,836,000	11,140,000	10,972,000	10,613,000
ROE		15.55%	15.58%	15.79%	15.51%	16.07%	16.22%	17.00%	18.22%	18.60%	19.61%	18.91%	18.33%	17.82%	16.26%	15.00%	13.86%	12.85%	13.20%	14.76%	16.66%

December 31, 2024 calculation

ROE = Net income (ttm) ÷ Total stockholders’ equity
= $2,240,000K ÷ $14,408,000K
= 15.55%

The Return on Equity (ROE) of Cognizant Technology Solutions Corp Class A has shown a somewhat fluctuating trend over the past few years. From March 31, 2020, to December 31, 2024, the ROE has ranged from 12.85% to 19.61%.

The ROE peaked at 19.61% on September 30, 2022, and then experienced a slight decline to 18.60% by December 31, 2022. This was followed by a further decrease in the ROE to 15.51% by March 31, 2024. Subsequently, the ROE gradually increased to 15.79% by June 30, 2024, and then saw a slight drop to 15.55% by December 31, 2024.

Overall, the ROE of Cognizant has shown fluctuations but has generally stayed within a moderate range. It is important for investors to monitor this metric along with other financial indicators to assess the company's profitability and efficiency in generating returns for shareholders.