The Cash Ratio measures a company’s ability to meet its short-term obligations with cash and near-cash resources. It is calculated as a company's Cash, Cash Equivalents, Marketable Securities divides by its Total Current Liabilities. Cognizant Technology Solutions's Cash Ratio for the quarter that ended in Dec. 2023 was 0.79.
Cognizant Technology Solutions has a Cash Ratio of 0.79. It indicates that there are more current liabilities than Cash, Cash Equivalents, Marketable Securities, and the company does not have sufficient cash on hand to pay off its short-term debt.
The historical rank and industry rank for Cognizant Technology Solutions's Cash Ratio or its related term are showing as below:
CTSH'
s Cash Ratio Range Over the Past 10 Years
Min: 0.75 Med: 1.31 Max: 2.14
Current: 0.79
During the past 13 years, Cognizant Technology Solutions's highest Cash Ratio was 2.14. The lowest was 0.75. And the median was 1.31.
CTSH's Cash Ratio is ranked better than 50.72% of 2766
companies
in the Software industry
Industry Median: 0.78
vs CTSH: 0.79
Cognizant Technology Solutions Cash Ratio Historical Data
The historical data trend for Cognizant Technology Solutions's Cash Ratio can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
For the Information Technology Services subindustry, Cognizant Technology Solutions's Cash Ratio, along with its competitors' market caps and Cash Ratio data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Cognizant Technology Solutions Cash Ratio Distribution
For the Software industry and Technology sector, Cognizant Technology Solutions's Cash Ratio distribution charts can be found below:
* The bar in red indicates where Cognizant Technology Solutions's Cash Ratio falls into.
Cognizant Technology Solutions Cash Ratio Calculation
The Cash Ratio measures a company's ability to meet its short-term obligations with its cash and near-cash resources.
Cognizant Technology Solutions's Cash Ratio for the fiscal year that ended in Dec. 2023 is calculated as:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Cognizant Technology Solutions (NAS:CTSH) Cash Ratio Explanation
The cash ratio is more conservative than other liquidity ratios, such as Quick Ratio and Current Ratio, because it only considers a company's most liquid resources. The numerator of cash ratio only considers Cash, Cash Equivalents and marketable securities. Other current assets, such as accounts receivable and inventories, are not included. The rationale is that these assets may require time to be transformed into cash, and the amount of money received is also uncertain.
The cash ratio shows a company’s ability to pay all current liabilities immediately without selling or liquidating other assets. Generally speaking, a higher cash ratio suggests the company has a stronger ability to cover its short-term debt. However, a high cash ratio could also indicate inefficient management: the company is inefficient in making full utilization of cash to invest protential profitable project. It may also suggest that the company is not confident about future profitability.
In general, the higher the cash ratio, the better the company's liquidity position.
Cognizant Technology Solutions Cash Ratio Related Terms
Thank you for viewing the detailed overview of Cognizant Technology Solutions's Cash Ratio provided by GuruFocus.com. Please click on the following links to see related term pages.
Cognizant Technology Solutions (Cognizant Technology Solutions) Business Description
Cognizant is a global IT services provider, offering consulting and outsourcing services to some of the world's largest enterprises spanning the financial services, media and communications, healthcare, natural resources, and consumer products industries. Cognizant employs nearly 300,000 people globally, roughly 70% of whom are in India, although the company's headquarters are in Teaneck, New Jersey.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
Portfolio Contest
CTSH has been successfully added to your 