Cognizant Technology Solutions Corp Class A (CTSH)

Financial leverage 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
Total assets	US$ in thousands	19,966,000	20,164,000	18,580,000	18,408,000	18,483,000	18,079,000	17,967,000	18,147,000	17,852,000	17,347,000	17,258,000	17,434,000	17,852,000	17,232,000	16,829,000	16,660,000	16,923,000	18,787,000	18,216,000	17,429,000
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
Financial leverage ratio		1.39	1.40	1.34	1.36	1.40	1.40	1.39	1.43	1.45	1.45	1.44	1.46	1.49	1.49	1.50	1.51	1.56	1.69	1.66	1.64

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 over the past few years. It decreased from 1.64 as of March 31, 2020, to 1.39 as of June 30, 2024. This indicates that the company has been relying less on debt financing compared to its equity. A decreasing financial leverage ratio can signal improved financial stability and reduced risk of financial distress, as the company is funding a lower proportion of its operations with debt. Overall, the declining trend in the financial leverage ratio suggests that Cognizant Technology Solutions Corp Class A has been managing its capital structure effectively, potentially enhancing its financial health and performance.