Cognizant Technology Solutions Corp Class A (CTSH)

Debt-to-equity 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-equity ratio		0.05	0.05	0.05	0.05	0.05	0.05	0.05	0.05	0.05	0.06	0.06	0.06	0.06	0.22	0.22	0.23	0.06	0.07	0.07	0.07

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 for Cognizant Technology Solutions Corp. has remained constant at 0.05 for all quarters across the period shown. This indicates that the company has maintained a conservative capital structure with a low level of debt relative to its equity. A ratio of 0.05 suggests that the company's reliance on debt financing is minimal compared to its equity financing. This stable and low debt-to-equity ratio may signify a lower financial risk for the company, as it implies a lower financial leverage and potential interest burden. However, it is essential to consider other factors such as the industry norms, overall economic conditions, and the company's specific strategies when interpreting the debt-to-equity ratio in isolation.