Cognizant Technology Solutions (Cognizant Technology Solutions) Interest Coverage

: 69.45 (As of Dec. 2023)

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Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income by its Interest Expense. Cognizant Technology Solutions's Operating Income for the three months ended in Dec. 2023 was $764 Mil. Cognizant Technology Solutions's Interest Expense for the three months ended in Dec. 2023 was $-11 Mil. Cognizant Technology Solutions's interest coverage for the quarter that ended in Dec. 2023 was 69.45. The higher the ratio, the stronger the company's financial strength is.

Good Sign:

Ben Graham prefers companies' interest coverage to be at least 5. Cognizant Technology Solutions Corp has enough cash to cover all of its debt. Its financial situation is stable.

The historical rank and industry rank for Cognizant Technology Solutions's Interest Coverage or its related term are showing as below:

CTSH' s Interest Coverage Range Over the Past 10 Years
Min: 71.17 Med: 115 Max: 628.33
Current: 71.17

CTSH's Interest Coverage is ranked better than
61.8% of 1602 companies
in the Software industry
Industry Median: 29.54 vs CTSH: 71.17

Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.

Cognizant Technology Solutions Interest Coverage Historical Data

The historical data trend for Cognizant Technology Solutions's Interest Coverage 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.

Note: For Interest Coverage, "No debt" indicates no long-term debt. An indication of "No Debt" does not necessarily mean that the company has no long-term debt obligations; it could be due to missing data in the quarterly or annual report. Use caution when interpreting this information.

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Cognizant Technology Solutions Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Interest Coverage

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102.69

97.04

314.00

156.21

71.17

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
Interest Coverage	Get a 7-Day Free Trial															85.75	78.00	69.40	68.91	69.45

Competitive Comparison

For the Information Technology Services subindustry, Cognizant Technology Solutions's Interest Coverage, along with its competitors' market caps and Interest Coverage 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 Interest Coverage Distribution

For the Software industry and Technology sector, Cognizant Technology Solutions's Interest Coverage distribution charts can be found below:

* The bar in red indicates where Cognizant Technology Solutions's Interest Coverage falls into.

Cognizant Technology Solutions Interest Coverage Calculation

Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:

If Interest Expense is negative and Operating Income is positive, then

Interest Coverage

-1

Operating Income

Interest Expense

Else if Interest Expense is negative and Operating Income is negative, then

The company did not have earnings to cover the interest expense.

Else if Interest Expense is 0 and Long-Term Debt & Capital Lease Obligation is 0, then

The company had no debt ⁽¹⁾.

Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.

Cognizant Technology Solutions's Interest Coverage for the fiscal year that ended in Dec. 2023 is calculated as

Here, for the fiscal year that ended in Dec. 2023, Cognizant Technology Solutions's Interest Expense was $-41 Mil. Its Operating Income was $2,918 Mil. And its Long-Term Debt & Capital Lease Obligation was $1,129 Mil.

Interest Coverage	=	-1	*	Operating Income (A: Dec. 2023 )	/	Interest Expense (A: Dec. 2023 )
	=	-1	*	2918	/	-41
	=	71.17

Cognizant Technology Solutions's Interest Coverage for the quarter that ended in Dec. 2023 is calculated as

Here, for the three months ended in Dec. 2023, Cognizant Technology Solutions's Interest Expense was $-11 Mil. Its Operating Income was $764 Mil. And its Long-Term Debt & Capital Lease Obligation was $1,129 Mil.

Interest Coverage	=	-1	*	Operating Income (Q: Dec. 2023 )	/	Interest Expense (Q: Dec. 2023 )
	=	-1	*	764	/	-11
	=	69.45

The higher the ratio, the stronger the company's Financial Strength is.

Cognizant Technology Solutions (NAS:CTSH) Interest Coverage Explanation

Ben Graham requires that a company has a minimum interest coverage of 5 with the companies he invested. If the interest coverage is less than 2, the company is burdened by debt. Any business slow or recession may drag the company into a situation where it cannot pay the interest on its debt.

Interest Coverage is an important factor when GuruFocus ranks a company's overage Financial Strength .

Cognizant Technology Solutions Interest Coverage Related Terms

Thank you for viewing the detailed overview of Cognizant Technology Solutions's Interest Coverage provided by GuruFocus.com. Please click on the following links to see related term pages.

Cognizant Technology Solutions (Cognizant Technology Solutions) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Technology » Software » Cognizant Technology Solutions Corp (NAS:CTSH) » Definitions » Interest Coverage

Comparable Companies

Traded in Other Exchanges

CTSH:Mexico COZ:Germany 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.

Executives

Michael Patsalos-fox	director	300 FRANK W. BURR BLVD., STE. 36, 6 FL., TEANECK NJ 07666
Mackay Leo S. Jr.	director	C/O COGNIZANT TECHNOLOGY SOLUTIONS CORP., 300 FRANK W. BURR BLVD., STE. 36, 6 FL., TEANECK NJ 07666
Robert C. Walker	officer: EVP & Pres, Global Growth Mkts	C/O COGNIZANT TECHNOLOGY SOLUTIONS, 300 FRANK W. BURR BOULEVARD, TEANECK NJ 07666
Abraham Schot	director	C/O COGNIZANT TECHNOLOGY SOLUTIONS CORP, 300 FRANK W. BURR BLVD. STE 36, 6 FL, TEANECK NJ 07666
Zein Abdalla	director	700 ANDERSON HILL ROAD, LEGAL DEPARTMENT, 1/2, PURCHASE NY 10577
Maureen Breakiron-evans	director	C/O COGNIZANT TECHNOLOGY SOLUTIONS CORP., 300 FRANK W. BURR BLVD., STE. 36, 6 FL., TEANECK NJ 07666
Kathryn Diaz	officer: SVP & Interim Chief People Off	300 FRANK W BURR BLVD, TEANECK NJ 07666
Eric Branderiz	director	915 DEGUIGNE DRIVE, PO BOX 3453, SUNNYVALE CA 94088-3453
Nella Domenici	director	C/O ALLIANCEBERNSTEIN, 1345 AVENUE OF THE AMERICAS, NEW YORK NY 10105
Ravi Kumar Singisetti	director, officer: Chief Executive Officer	9405 SW GEMINI DRIVE, BEAVERTON OR 97008
Surya Gummadi	officer: SVP & Interim Americas Lead	C/O COGNIZANT TECHNOLOGY SOLUTIONS, 300 FRANK W. BURR BOULEVARD, TEANECK NJ 07666
Andrew J Stafford	officer: EVP, Head of Global Delivery	C/O COGNIZANT TECHNOLOGY SOLUTIONS CORP., 300 FRANK W. BURR BLVD., STE. 36, 6 FL., TEANECK NJ 07666
Stephen J Rohleder	director	C/O ACCENTURE, 161 N. CLARK STREET, CHICAGO IL 60601
Rajesh Nambiar	officer: President, Digital Business	300 FRANK W. BURR BLVD, STE. 36, 6TH FL., TEANECK NJ 07666
Robert Telesmanic	officer: SVP, Cont. & Chief Acct. Offc.	COGNIZANT TECHNOLOGY SOLUTIONS CORP., 300 FRANK W. BURR BLVD., STE. 36, 6 FL., TEANECK NJ 07666