Cognizant Technology Solutions Corp Class A (CTSH)

Debt-to-capital ratio

		Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	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
Long-term debt	US$ in thousands	875,000	1,183,000	590,000	598,000	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
Total stockholders’ equity	US$ in thousands	14,408,000	14,452,000	13,898,000	13,490,000	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
Debt-to-capital ratio		0.06	0.08	0.04	0.04	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

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

The debt-to-capital ratio of Cognizant Technology Solutions Corp Class A has shown a decreasing trend over the analyzed period, starting at 0.19 on March 31, 2020, and reaching 0.06 by December 31, 2021. Subsequently, the ratio remained relatively stable at 0.05 from March 31, 2022, to June 30, 2024, indicating a conservative debt management approach.

However, there was a slight increase in the debt-to-capital ratio to 0.08 as of September 30, 2024, followed by a decrease to 0.06 by December 31, 2024. This fluctuation suggests potential changes in the company's capital structure and debt levels during this period.

Overall, the decreasing trend in the debt-to-capital ratio emphasizes Cognizant's efforts to reduce its reliance on debt financing and maintain a healthier balance between debt and equity in its capital structure.