Cognizant Technology Solutions (CTSH) FY2020 results: revenue $16.7 billion, down 0.8% on the year
Cognizant Technology Solutions Corp. (CTSH) reported revenue of $16.7 billion for fiscal 2020, the year ended 31 December 2020, down 0.8% on the year before. Net income was $1.4 billion, down 24.4%, and diluted earnings per share $2.57. The figures are the company's own, from the 10-K it filed with the SEC on 12 February 2021.
Revenue
$16.7 billion
-0.8% on the year
FY2013FY2020
Operating margin
12.7%
14.6% a year earlier
FY2013FY2020
Net income
$1.4 billion
-24.4% on the year
FY2013FY2020
Diluted EPS
$2.57
-21.9% on the year
FY2013FY2020
this yearthe year beforeHover a bar for its figure.
The year in brief
Income statement (profit and loss)
$ million
FY2020
FY2019
FY2018
On the year
Last 8 years
Revenue
16,652
16,783
16,125
-0.8%
Cost of revenue
10,671
10,634
9,838
+0.3%
Gross profit
5,981
6,149
6,287
-2.7%
Gross margin
35.9%
36.6%
39.0%
Selling, general and administrative
3,100
2,972
3,007
+4.3%
Operating income
2,114
2,453
2,801
-13.8%
Operating margin
12.7%
14.6%
17.4%
Interest expense
24.0
26.0
27.0
-7.7%
Pre-tax income
2,096
2,543
2,797
-17.6%
Income tax
704
643
698
+9.5%
Effective tax rate
33.6%
25.3%
25.0%
Net income
1,392
1,842
2,101
-24.4%
Net margin
8.4%
11.0%
13.0%
Diluted EPS
$2.57
$3.29
$3.60
-21.9%
$ million except per share. Read moreFree cash flow is operating cash flow less capital expenditure; the effective tax rate is income tax over pre-tax income; margins are the line over revenue. Gross profit is revenue less cost of revenue, and operating income is revenue less the company's own total costs, where the statement does not print those lines. Those four are arithmetic on the filed numbers; everything else is as filed. Money is in $ million as the company files it, or in $ billion by the switch above the tables; per share figures and share counts are as they are.
Cash flow
$ million
FY2020
FY2019
FY2018
On the year
Last 8 years
Operating cash flow
3,299
2,499
2,592
+32.0%
Capital expenditure
398
392
377
+1.5%
Free cash flow
2,901
2,107
2,215
+37.7%
Free cash flow margin
17.4%
12.6%
13.7%
Cash from investing
-1,238
1,588
-1,627
Cash from financing
-2,009
-2,569
-1,693
Depreciation and amortisation
559
526
498
+6.3%
Share-based compensation
232
217
267
+6.9%
Buybacks
1,621
2,247
1,261
-27.9%
Dividends paid
480
453
468
+6.0%
Dividend per share
$0.88
$0.80
n/a
+10.0%
Diluted shares, weighted
541m
560m
584m
-3.4%
Shares outstanding at period end
530m
548m
577m
-3.3%
Balance sheet
$ million
FY2020
FY2019
FY2018
On the year
Last 8 years
Shareholders' equity
10,836
11,022
11,424
-1.7%
Debt
701
738
750
-5.0%
Operating lease liabilities
846
745
n/a
+13.6%
Finance lease liabilities
11.0
15.0
n/a
-26.7%
Other liabilities
4,529
3,684
3,672
+22.9%
Total liabilities and equity
16,923
16,204
15,846
+4.4%
Fixed assets
1,251
1,309
1,394
-4.4%
Goodwill
5,031
3,979
3,481
+26.4%
Intangible assets
1,046
1,041
1,150
+0.5%
Investments
484
796
3,430
-39.2%
Cash and equivalents
2,680
2,645
1,161
+1.3%
Receivables
3,087
3,256
3,190
-5.2%
Other assets
3,344
3,178
2,040
+5.2%
Total assets
16,923
16,204
15,846
+4.4%
10-K for the year ended 31 December 2020, filed 12 February 2021: the filing.