Cognizant Technology Solutions Corp Class A (CTSH)

Return on total capital

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Earnings before interest and tax (EBIT)	US$ in thousands	2,835,000	3,039,000	2,839,000	2,120,000	2,511,000
Long-term debt	US$ in thousands	606,000	638,000	626,000	663,000	700,000
Total stockholders’ equity	US$ in thousands	13,227,000	12,309,000	11,991,000	10,836,000	11,022,000
Return on total capital		20.49%	23.47%	22.50%	18.44%	21.42%

December 31, 2023 calculation

Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $2,835,000K ÷ ($606,000K + $13,227,000K)
= 20.49%

The return on total capital for Cognizant Technology Solutions Corp. has demonstrated fluctuations over the past five years, ranging from 20.19% in 2020 to 22.94% in 2022. The return on total capital was 21.09% in 2023, slightly lower than the previous year but still indicating a strong performance in utilizing both equity and debt to generate profits. Overall, the company has maintained a generally healthy return on total capital, showcasing its ability to efficiently deploy capital to generate returns for its investors.