Cognizant Technology Solutions Corp Class A (CTSH)
Return on total capital
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 2,994,000 | 3,007,000 | 2,968,000 | 2,824,000 | 2,835,000 | 2,793,000 | 2,884,000 | 3,051,000 | 3,039,000 | 3,057,000 | 2,973,000 | 2,907,000 | 2,839,000 | 2,570,000 | 2,466,000 | 2,272,000 | 2,120,000 | 2,224,000 | 2,258,000 | 2,436,000 |
| Long-term debt | US$ in thousands | 875,000 | 1,183,000 | 590,000 | 598,000 | 606,000 | 614,000 | 622,000 | 630,000 | 638,000 | 636,000 | 608,000 | 617,000 | 626,000 | 636,000 | 645,000 | 654,000 | 663,000 | 2,412,000 | 2,421,000 | 2,430,000 |
| 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 |
| Return on total capital | 19.59% | 19.23% | 20.49% | 20.05% | 20.49% | 20.70% | 21.32% | 22.96% | 23.47% | 24.27% | 23.67% | 23.09% | 22.50% | 21.10% | 20.81% | 19.43% | 18.44% | 16.41% | 16.86% | 18.68% |
December 31, 2024 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $2,994,000K ÷ ($875,000K + $14,408,000K)
= 19.59%
Cognizant Technology Solutions Corp Class A has demonstrated a fluctuating trend in return on total capital over the past few years. The return on total capital stood at 18.68% as of March 31, 2020, and experienced minor declines until September 30, 2020, where it reached 16.41%. However, there was a positive uptrend from December 31, 2020, to June 30, 2022, with the return on total capital improving steadily. The metric hit its peak at 24.27% on September 30, 2022, showing a strong performance during this period.
After reaching the peak, there was a slight decrease in the return on total capital by December 31, 2022, and the metric continued to decline gradually until September 30, 2024. As of December 31, 2024, the return on total capital was 19.59%. Despite the fluctuations, Cognizant Technology Solutions Corp Class A generally maintained a healthy return on total capital throughout the observed period, indicating efficient capital deployment and generating value for shareholders.
Peer comparison
Dec 31, 2024