Cognizant Technology Solutions Corp Class A (CTSH)

Debt-to-assets ratio

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Long-term debt	US$ in thousands	606,000	638,000	626,000	663,000	700,000
Total assets	US$ in thousands	18,483,000	17,852,000	17,852,000	16,923,000	16,204,000
Debt-to-assets ratio		0.03	0.04	0.04	0.04	0.04

December 31, 2023 calculation

Debt-to-assets ratio = Long-term debt ÷ Total assets
= $606,000K ÷ $18,483,000K
= 0.03

The debt-to-assets ratio of Cognizant Technology Solutions Corp. has shown a decreasing trend over the past five years. As of December 31, 2023, the company's debt-to-assets ratio stands at 0.03, indicating that only 3% of its assets are financed through debt. This ratio has improved from 0.05 in 2019.

A lower debt-to-assets ratio suggests that the company relies less on debt financing and is in a stronger financial position to meet its obligations. It also indicates a lower financial risk associated with the company's capital structure.

Overall, the decreasing trend in Cognizant's debt-to-assets ratio reflects a prudent management strategy in maintaining a conservative level of debt relative to its asset base. This can enhance investor confidence and signal financial stability and strength within the organization.