Cognizant Technology Solutions Corp Class A (CTSH)

Debt-to-assets ratio

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Long-term debt	US$ in thousands	875,000	606,000	638,000	626,000	663,000
Total assets	US$ in thousands	19,966,000	18,483,000	17,852,000	17,852,000	16,923,000
Debt-to-assets ratio		0.04	0.03	0.04	0.04	0.04

December 31, 2024 calculation

Debt-to-assets ratio = Long-term debt ÷ Total assets
= $875,000K ÷ $19,966,000K
= 0.04

The debt-to-assets ratio of Cognizant Technology Solutions Corp Class A has remained stable over the past five years, ranging between 0.03 and 0.04. This indicates that the company has been maintaining a conservative level of debt relative to its total assets. A low debt-to-assets ratio suggests that the company relies more on equity financing rather than debt to fund its operations and investments, which can be considered a positive indicator of financial health and stability. It shows that the company's assets are primarily financed through its own resources, reducing the risk associated with high leverage. Overall, the consistent low level of debt in relation to its assets reflects a prudent financial management strategy by Cognizant Technology Solutions Corp Class A.