Cognizant Technology Solutions Corp Class A (CTSH)

Cognizant Technology Solutions Corp. has displayed a consistent trend of improving solvency ratios over the past five years, reflecting a strong financial position and solid debt management practices.

The debt-to-assets ratio has declined from 0.05 in 2019 to 0.03 in 2023, indicating that the company's proportion of assets funded by debt has decreased. This suggests a lower financial risk and greater financial stability.

Similarly, the debt-to-capital ratio and debt-to-equity ratio have also decreased over the years, from 0.06 in 2019 to 0.05 in 2023. This trend implies that Cognizant has been able to reduce its reliance on debt financing and strengthen its capital structure, which is a positive indicator of long-term solvency.

The financial leverage ratio has shown a fluctuating pattern but has generally decreased from 1.56 in 2020 to 1.40 in 2023. This implies that the company's reliance on debt to finance its operations has reduced, leading to a lower financial risk and improved financial health.

Overall, the solvency ratios of Cognizant Technology Solutions Corp. demonstrate effective debt management, prudent financial decision-making, and a strong balance sheet position, which are all favorable attributes for investors and stakeholders.

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Coverage ratios

Based on the provided data, it appears that the interest coverage ratio for Cognizant Technology Solutions Corp. is not available for the years 2019 through 2023. This could be due to missing financial data related to interest expenses or earnings before interest and taxes (EBIT) in the financial statements for these years. The absence of the interest coverage ratio may hinder the assessment of the company's ability to meet interest obligations using its earnings. Further analysis would be required to understand the factors impacting the company's interest coverage over these years.