Cognizant Technology Solutions Corp Class A (CTSH)
Debt-to-equity 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 stockholders’ equity | US$ in thousands | 13,227,000 | 12,309,000 | 11,991,000 | 10,836,000 | 11,022,000 |
| Debt-to-equity ratio | 0.05 | 0.05 | 0.05 | 0.06 | 0.06 |
December 31, 2023 calculation
Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $606,000K ÷ $13,227,000K
= 0.05
The debt-to-equity ratio of Cognizant Technology Solutions Corp. has shown a consistent and low trend over the past five years, indicating a conservative capital structure with a lower reliance on debt financing. The ratio has remained stable at around 0.05 to 0.07 from 2019 to 2023, suggesting that the company has maintained a healthy balance between debt and equity in funding its operations and investments. This stable and low debt-to-equity ratio signifies a lower financial risk for the company, as it indicates that the company is not highly leveraged and has a strong equity base to support its operations. Overall, the trend in Cognizant's debt-to-equity ratio reflects a prudent financial management strategy.
Peer comparison
Dec 31, 2023