Cognizant Technology Solutions Corp Class A (CTSH)

Debt-to-equity 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-equity ratio		0.06	0.08	0.04	0.04	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

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 exhibited a downward trend over the years, indicating a decreasing reliance on debt financing relative to equity.

From March 31, 2020, to December 31, 2024, the ratio decreased from 0.23 to 0.06, before experiencing slight fluctuations to reach 0.06 by December 31, 2023.

The company then successfully maintained a consistent debt-to-equity ratio of 0.05 from March 31, 2022, to December 31, 2023. This suggests prudent financial management and reduced financial risk as a lower ratio signifies lower financial leverage and a stronger financial position.

However, a slight increase was observed from 0.04 on June 30, 2024, to 0.08 on September 30, 2024, before decreasing to 0.06 by December 31, 2024. It would be important for stakeholders to continue monitoring the trend to ensure the company maintains a balanced capital structure and remains financially healthy.