Cognizant Technology Solutions (WBO:CTSH) EBIT : €2,624 Mil (TTM As of Dec. 2023)

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What is Cognizant Technology Solutions EBIT?

Cognizant Technology Solutions's earnings before interest and taxes (EBIT) for the three months ended in Dec. 2023 was €697 Mil. Its earnings before interest and taxes (EBIT) for the trailing twelve months (TTM) ended in Dec. 2023 was €2,624 Mil.

EBIT or Operating Income is linked to Return on Capital for both regular definition and Joel Greenblatt's definition. Cognizant Technology Solutions's annualized ROC % for the quarter that ended in Dec. 2023 was 14.89%. Cognizant Technology Solutions's annualized ROC (Joel Greenblatt) % for the quarter that ended in Dec. 2023 was 86.97%.

EBIT is also linked to Joel Greenblatt's definition of earnings yield. Cognizant Technology Solutions's Earnings Yield (Joel Greenblatt) % for the quarter that ended in Dec. 2023 was 8.85%.

Cognizant Technology Solutions EBIT Historical Data

The historical data trend for Cognizant Technology Solutions's EBIT 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.

* Premium members only.

Cognizant Technology Solutions EBIT Chart

Cognizant Technology Solutions Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

EBIT

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2,312.10

1,742.64

2,509.86

2,865.04

2,593.28

Cognizant Technology Solutions Quarterly Data
	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23
EBIT	Get a 7-Day Free Trial															681.57	697.70	551.03	678.39	696.92

Competitive Comparison of Cognizant Technology Solutions's EBIT

For the Information Technology Services subindustry, Cognizant Technology Solutions's EV-to-EBIT, along with its competitors' market caps and EV-to-EBIT 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's EV-to-EBIT Distribution in the Software Industry

For the Software industry and Technology sector, Cognizant Technology Solutions's EV-to-EBIT distribution charts can be found below:

* The bar in red indicates where Cognizant Technology Solutions's EV-to-EBIT falls into.

Cognizant Technology Solutions EBIT Calculation

EBIT, sometimes also called Earnings Before Interest and Taxes, is a measure of a firm's profit that includes all expenses except interest and income tax expenses. It is the difference between operating revenues and operating expenses. When a firm does not have non-operating income, then Operating Income is sometimes used as a synonym for EBIT and operating profit.

EBIT for the trailing twelve months (TTM) ended in Dec. 2023 adds up the quarterly data reported by the company within the most recent 12 months, which was €2,624 Mil.

Cognizant Technology Solutions (WBO:CTSH) EBIT Explanation

1. EBIT or Operating Income is linked to Return on Capital for both regular definition and Joel Greenblatt's definition.

Cognizant Technology Solutions's annualized ROC % for the quarter that ended in Dec. 2023 is calculated as:

	ROC % (Q: Dec. 2023 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Sep. 2023 )	+	Invested Capital (Q: Dec. 2023 ))	/ count )
=	2802.352 * ( 1 - 26.03% )	/	( (13990.347	+	13843.949)	/ 2 )
=	2072.8997744	/	13917.148
=	14.89 %

where

	Invested Capital		(Q: Sep. 2023 )
=	Total Assets	-	Accounts Payable & Accrued Expense	-	Excess Cash
=	Total Assets	-	Accounts Payable & Accrued Expense	-	( Cash, Cash Equivalents, Marketable Securities	-	max(0, Total Current Liabilities	-	Total Current Assets	+	Cash, Cash Equivalents, Marketable Securities	))
=	16940.023	-	730.86	-	( 2218.816	-	max(0, 2989.967	-	6677.999	+	2218.816	))
=	13990.347

	Invested Capital		(Q: Dec. 2023 )
=	Total Assets	-	Accounts Payable & Accrued Expense	-	Excess Cash
=	Total Assets	-	Accounts Payable & Accrued Expense	-	( Cash, Cash Equivalents, Marketable Securities	-	max(0, Total Current Liabilities	-	Total Current Assets	+	Cash, Cash Equivalents, Marketable Securities	))
=	16948.911	-	688.667	-	( 2416.295	-	max(0, 3056.361	-	6883.002	+	2416.295	))
=	13843.949

Note: The Operating Income data used here is four times the quarterly (Dec. 2023) data.

2. Joel Greenblatt's definition of Return on Capital:

Cognizant Technology Solutions's annualized ROC (Joel Greenblatt) % for the quarter that ended in Dec. 2023 is calculated as:

	ROC (Joel Greenblatt) %		(Q: Dec. 2023 )
=	EBIT	/	Average of (Net fixed Assets	+	Net Working Capital)
=	EBIT	/	Average of (Property, Plant and Equipment	+	Net Working Capital)
			Q: Sep. 2023		Q: Dec. 2023
=	EBIT	/	( ( (Property, Plant and Equipment + Net Working Capital)	+	(Property, Plant and Equipment + Net Working Capital) )	/	count )
=	2787.68	/	( ( (1654.742 + max(1653.805, 0))	+	(1521.303 + max(1580.908, 0)) )	/	2 )
=	2787.68	/	( ( 3308.547	+	3102.211 )	/	2 )
=	2787.68	/	3205.379
=	86.97 %

where Working Capital is:

	Working Capital		(Q: Sep. 2023 )
=	(Accounts Receivable	+	Total Inventories	+	Other Current Assets)	-	(Accounts Payable & Accrued Expense	+	Defer. Rev.	+	Other Current Liabilities)
=	(3567.159	+	0	+	892.024)	-	(730.86	+	282.974	+	1791.544)
=	1653.805

	Working Capital		(Q: Dec. 2023 )
=	(Accounts Receivable	+	Total Inventories	+	Other Current Assets)	-	(Accounts Payable & Accrued Expense	+	Defer. Rev.	+	Other Current Liabilities)
=	(3529.533	+	0	+	937.174)	-	(688.667	+	353.045	+	1844.087)
=	1580.908

When net working capital is negative, 0 is used.

Note: The EBIT data used here is four times the quarterly (Dec. 2023) EBIT data.

3. It is also linked to Joel Greenblatt's definition of Earnings Yield:

Cognizant Technology Solutions's Earnings Yield (Joel Greenblatt) % for today is calculated as:

Earnings Yield (Joel Greenblatt) %	=	EBIT (TTM)	/	Enterprise Value (Q: Dec. 2023 )
	=	2624.037	/	29663.492
	=	8.85 %

Cognizant Technology Solutions EBIT Related Terms

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Cognizant Technology Solutions (WBO:CTSH) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Technology » Software » Cognizant Technology Solutions Corp (WBO:CTSH) » Definitions » EBIT

Comparable Companies

Traded in Other Exchanges

CTSH:USA CTSH:Mexico COZ:Germany CTSH34:Brazil

Address

300 Frank West Burr Boulevard, Suite 36, 6th Floor, Teaneck, NJ, USA, 07666

Website

https://www.cognizant.com

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.