Cognizant Technology Solutions Corp Class A (CTSH)
Financial leverage ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 19,966,000 | 18,483,000 | 17,852,000 | 17,852,000 | 16,923,000 |
| Total stockholders’ equity | US$ in thousands | 14,408,000 | 13,227,000 | 12,309,000 | 11,991,000 | 10,836,000 |
| Financial leverage ratio | 1.39 | 1.40 | 1.45 | 1.49 | 1.56 |
December 31, 2024 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $19,966,000K ÷ $14,408,000K
= 1.39
The financial leverage ratio of Cognizant Technology Solutions Corp Class A has shown a decreasing trend from 1.56 in December 31, 2020, to 1.39 in December 31, 2024. This indicates that the company has been gradually reducing its reliance on debt to finance its operations and investments over the years. A decreasing trend in the financial leverage ratio suggests that the company is becoming less leveraged and potentially less risky in terms of its financial structure. It is essential to continue monitoring this ratio to ensure that the company maintains a healthy balance between debt and equity in its capital structure.
Peer comparison
Dec 31, 2024