Cognizant Technology Solutions Corp Class A (CTSH)

Return on equity (ROE)

		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 stockholders’ equity	US$ in thousands	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	11,022,000	10,702,000	10,557,000	11,136,000
ROE		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%	16.71%	19.58%	19.66%	18.16%

December 31, 2023 calculation

ROE = Net income (ttm) ÷ Total stockholders’ equity
= $2,126,000K ÷ $13,227,000K
= 16.07%

Cognizant Technology Solutions Corp.'s return on equity (ROE) has displayed a general decreasing trend over recent quarters. The ROE decreased from 18.60% in Q4 2022 to 16.07% in Q4 2023. This downward trend indicates a potential decrease in profitability relative to shareholders' equity. However, it is worth noting that despite the decline, the company's ROE remains relatively stable within the range of 16.07% to 18.60% over the past two years, showing consistent performance in generating profits from shareholders' investments. Further analysis and comparison with industry peers' ROE ratios may provide additional insights into the company's relative financial performance.