Cognizant Technology Solutions Corp Class A (CTSH)
Interest coverage
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 2,835,000 | 3,039,000 | 2,839,000 | 2,120,000 | 2,511,000 |
| Interest expense | US$ in thousands | 41,000 | 19,000 | 9,000 | 24,000 | 26,000 |
| Interest coverage | 69.15 | 159.95 | 315.44 | 88.33 | 96.58 |
December 31, 2023 calculation
Interest coverage = EBIT ÷ Interest expense
= $2,835,000K ÷ $41,000K
= 69.15
Based on the provided data table showing the lack of specific values for interest coverage for Cognizant Technology Solutions Corp. in the years 2019 to 2023, it is not possible to conduct a detailed analysis of this ratio. Interest coverage ratio is a financial metric that indicates a company's ability to meet its interest obligations from its operating income. Typically, a higher interest coverage ratio is preferable as it suggests the company has enough earnings to cover its interest expenses comfortably.
However, without the actual values for interest coverage in the specified years, it is challenging to assess Cognizant's ability to pay its interest costs. To provide a comprehensive analysis of the company's interest coverage, specific numerical data for these years would be required to calculate the ratio and make meaningful comparisons and evaluations.
Peer comparison
Dec 31, 2023