Cognizant Technology Solutions (STU:COZ) ROCE % : 18.53% (As of Sep. 2024)

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What is Cognizant Technology Solutions ROCE %?

ROCE % measures how well a company generates profits from its capital. It is calculated as EBIT divided by Capital Employed, where Capital Employed is calculated as Total Assets minus Total Current Liabilities. Cognizant Technology Solutions's annualized ROCE % for the quarter that ended in Sep. 2024 was 18.53%.

Cognizant Technology Solutions ROCE % Historical Data

The historical data trend for Cognizant Technology Solutions's ROCE % 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.

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Cognizant Technology Solutions ROCE % Chart

Cognizant Technology Solutions Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

ROCE %

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19.72

15.22

21.20

21.73

18.80

Cognizant Technology Solutions Quarterly Data
	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23	Mar24	Jun24	Sep24
ROCE %	Get a 7-Day Free Trial															19.58	20.02	19.23	19.12	18.53

Cognizant Technology Solutions ROCE % Calculation

Cognizant Technology Solutions's annualized ROCE % for the fiscal year that ended in Dec. 2023 is calculated as:

ROCE %	=	EBIT	/	( (Capital Employed	+	Capital Employed)	/ count )
		(A: Dec. 2023 )		(A: Dec. 2022 )		(A: Dec. 2023 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(A: Dec. 2023 )		(A: Dec. 2022 )		(A: Dec. 2023 )
	=	2593.276	/	( ( (16852.288 - 3159.568)	+	(16948.911 - 3056.361) )	/ 2 )
	=	2593.276	/	( (13692.72	+	13892.55)	/ 2 )
	=	2593.276	/	13792.635
	=	18.80 %

Cognizant Technology Solutions's ROCE % of for the quarter that ended in Sep. 2024 is calculated as:

ROCE %	=	EBIT ⁽¹⁾	/	( (Capital Employed	+	Capital Employed)	/ count )
		(Q: Sep. 2024 )		(Q: Jun. 2024 )		(Q: Sep. 2024 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(Q: Sep. 2024 )		(Q: Jun. 2024 )		(Q: Sep. 2024 )
	=	2746.248	/	( ( (17260.82 - 2736.834)	+	(18167.764 - 3052.588) )	/ 2 )
	=	2746.248	/	( ( 14523.986	+	15115.176 )	/ 2 )
	=	2746.248	/	14819.581
	=	18.53 %

(1) Note: The EBIT data used here is four times the quarterly (Sep. 2024) EBIT data.

Cognizant Technology Solutions (STU:COZ) ROCE % Explanation

ROCE % can be especially useful when comparing the performance of capital-intensive companies. Unlike ROE %, which indicates the profitability of Shareholders Equity, ROCE % also considers long-term debt in Capital Employed. This can be helpful when analyzing companies with significant debt, as the result is neutralized by taking debt into consideration.

Generally speaking, a higher ROCE % indicates a stonger profitability for a company. Moreover, it is important to look at the ratio from a long term perspective. Investors tend to favor companies with stable and rising ROCE % trend over those with volatile ones.

Cognizant Technology Solutions ROCE % Related Terms

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Cognizant Technology Solutions Business Description

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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.

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