Cognizant Technology Solutions Corp Class A (CTSH)

Debt-to-capital 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 stockholders’ equity	US$ in thousands	14,408,000	13,227,000	12,309,000	11,991,000	10,836,000
Debt-to-capital ratio		0.06	0.04	0.05	0.05	0.06

December 31, 2024 calculation

Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $875,000K ÷ ($875,000K + $14,408,000K)
= 0.06

Cognizant Technology Solutions Corp Class A has shown a declining trend in its debt-to-capital ratio over the analyzed period. The ratio decreased from 0.06 at the end of December 2020 to 0.05 at the end of December 2021 and continued to decrease to 0.04 by December 31, 2023. Although there was a slight increase to 0.06 by December 31, 2024, the overall trend indicates that the company has been effectively managing its debt relative to its capital base. This declining trend suggests that Cognizant Technology Solutions Corp Class A has been reducing its reliance on debt financing and improving its capital structure over the years, which could positively impact its financial stability and creditworthiness.