Cognizant Technology Solutions Corp Class A (CTSH)

Debt-to-capital ratio

		Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Long-term debt	US$ in thousands	606,000	614,000	622,000	630,000	638,000	636,000	608,000	617,000	626,000	636,000	645,000	654,000	663,000	2,412,000	2,421,000	2,430,000	700,000	709,000	718,000	727,000
Total stockholders’ equity	US$ in thousands	13,227,000	12,882,000	12,903,000	12,661,000	12,309,000	11,958,000	11,950,000	11,973,000	11,991,000	11,546,000	11,205,000	11,037,000	10,836,000	11,140,000	10,972,000	10,613,000	11,022,000	10,702,000	10,557,000	11,136,000
Debt-to-capital ratio		0.04	0.05	0.05	0.05	0.05	0.05	0.05	0.05	0.05	0.05	0.05	0.06	0.06	0.18	0.18	0.19	0.06	0.06	0.06	0.06

December 31, 2023 calculation

Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $606,000K ÷ ($606,000K + $13,227,000K)
= 0.04

For Cognizant Technology Solutions Corp., the debt-to-capital ratio has remained consistent at 0.05 throughout all quarters of the last two years. This ratio indicates that only 5% of the company's capital structure is financed through debt, while the remaining 95% is financed through equity. A low debt-to-capital ratio typically signifies a lower risk level in terms of financial leverage and indicates that the company has a strong equity base to support its operations. In the case of Cognizant, the consistent and low debt-to-capital ratio suggests that the company has a conservative approach to debt management, which may be viewed positively by investors and creditors.