Cognizant Technology Solutions Corp Class A (CTSH)
Financial leverage 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 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 | 16,204,000 | 15,844,000 | 15,517,000 | 16,096,000 |
| 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 |
| Financial leverage ratio | 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 | 1.47 | 1.48 | 1.47 | 1.45 |
December 31, 2023 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $18,483,000K ÷ $13,227,000K
= 1.40
The financial leverage ratio of Cognizant Technology Solutions Corp. has been relatively stable over the past eight quarters, ranging from 1.39 to 1.46. The ratio indicates that the company relies more on debt financing rather than equity to fund its operations and growth. A ratio greater than 1 indicates that the company has more debt in its capital structure than equity.
The slight fluctuations in the ratio suggest that the company has been managing its leverage levels consistently over time. A ratio of 1.40 to 1.46 indicates a moderate level of financial leverage, which could potentially amplify returns for shareholders in profitable times but also increase risk during economic downturns.
Overall, based on the financial leverage ratio trend, Cognizant Technology Solutions Corp. appears to have a balanced approach to its capital structure, maintaining a level of debt that is sustainable and supporting its growth objectives.
Peer comparison
Dec 31, 2023