Cognizant Technology Solutions Corp Class A (CTSH)

Debt-to-equity 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-equity ratio		0.06	0.05	0.05	0.05	0.06

December 31, 2024 calculation

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

The debt-to-equity ratio of Cognizant Technology Solutions Corp Class A has remained relatively stable over the past five years, ranging from 0.05 to 0.06. This indicates that the company's reliance on debt financing in relation to equity has been consistent, with a preference towards equity in its capital structure. A lower debt-to-equity ratio suggests that Cognizant has been financing its operations more through equity rather than debt, which can be seen as a positive indication of financial stability and reduced financial risk. This trend reflects a prudent approach to managing the company's capital structure, balancing debt and equity to maintain a healthy financial position.