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.
Peer comparison
Dec 31, 2023