Cognizant Technology Solutions Corp Class A (CTSH)
Financial leverage ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 18,483,000 | 17,852,000 | 17,852,000 | 16,923,000 | 16,204,000 |
| Total stockholders’ equity | US$ in thousands | 13,227,000 | 12,309,000 | 11,991,000 | 10,836,000 | 11,022,000 |
| Financial leverage ratio | 1.40 | 1.45 | 1.49 | 1.56 | 1.47 |
December 31, 2023 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $18,483,000K ÷ $13,227,000K
= 1.40
Cognizant Technology Solutions Corp.'s financial leverage ratio has exhibited a decreasing trend over the past five years, decreasing from 1.47 in 2019 to 1.40 in 2023. This indicates that the company has been gradually reducing its reliance on debt to finance its operations and growth. A lower financial leverage ratio suggests that the company has a lower level of debt relative to its equity, which can be viewed positively as it implies a lower financial risk and potentially more financial stability. By reducing its financial leverage ratio, the company may be improving its financial health and resilience to economic uncertainties. It is important to continue monitoring this ratio to assess the company's capital structure and financial risk profile.
Peer comparison
Dec 31, 2023