Cognizant Technology Solutions Corporation (CTSH) FCF Payout Ratio: 24.93%
Is Cognizant Technology Solutions Corporation’s FCF payout ratio high or low?
Cognizant Technology Solutions Corporation's FCF payout ratio of 24.93% is in line with its 5-year average of 25.07%, around the middle of its 5-year range (16.55%–32.84%).
The FCF payout ratio for Cognizant Technology Solutions Corporation (CTSH) is 24.93%. It is below its 12-month average by 11.51% (28.17%).
CTSH FCF Payout Ratio Chart
CTSH Average FCF Payout Ratio Chart
CTSH Current vs Average FCF Payout Ratio Chart
CTSH FCF Payout Ratio Metrics
FCF PAYOUT RATIO
24.93%
FCF PAYOUT RATIO AVG TTM
28.17%
FCF PAYOUT RATIO AVG 3Y
27.73%
FCF PAYOUT RATIO AVG 5Y
25.07%
FCF PAYOUT RATIO AVG 10Y
22.84%
FCF PAYOUT RATIO AVG 15Y
22.84%
FCF PAYOUT RATIO AVG 20Y
22.84%
CURRENT VS TTM AVG
-11.51%
CURRENT VS 3Y AVG
-10.11%
CURRENT VS 5Y AVG
-0.58%
CURRENT VS 10Y AVG
+9.15%
CURRENT VS 15Y AVG
+9.15%
CURRENT VS 20Y AVG
+9.15%
Payout Ratio Comparison
FCF Payout Ratio
24.9%
Earnings Payout Ratio
28.1%
Dividend Yield
2.42%
FCF Yield
9.78%
Annual FCF Payout Ratio History
| Year | Free Cash Flow | Dividends Paid | FCF Payout Ratio |
|---|---|---|---|
| 2025 | $2.60B | $610.00M | 23.5% |
| 2024 | $1.83B | $600.00M | 32.8% |
| 2023 | $2.01B | $591.00M | 29.4% |
| 2022 | $2.24B | $564.00M | 25.2% |
| 2021 | $2.22B | $509.00M | 23.0% |
| 2020 | $2.90B | $480.00M | 16.5% |
| 2019 | $2.11B | $453.00M | 21.5% |
| 2018 | $2.21B | $468.00M | 21.1% |
| 2017 | $2.12B | $265.00M | 12.5% |
| 2016 | $1.32B | $0 | 0.0% |
| 2015 | $1.88B | $0 | 0.0% |
| 2014 | $1.26B | $0 | 0.0% |
| 2013 | $1.16B | $0 | 0.0% |
| 2012 | $838.12M | $0 | 0.0% |
| 2011 | $586.93M | $0 | 0.0% |
| 2010 | $579.14M | $0 | 0.0% |
| 2009 | $595.69M | $0 | 0.0% |
| 2008 | $260.30M | $0 | 0.0% |
| 2007 | $161.85M | $0 | 0.0% |
| 2006 | $148.14M | $0 | 0.0% |
| 2005 | $87.99M | $0 | 0.0% |
| 2004 | $80.75M | $0 | 0.0% |
| 2003 | $49.87M | $0 | 0.0% |
| 2002 | $34.41M | $0 | 0.0% |
| 2001 | $17.13M | $0 | 0.0% |
| 2000 | $19.57M | $0 | 0.0% |
| 1999 | $12.70M | $0 | 0.0% |
| 1998 | $9.70M | $0 | 0.0% |
Formula: FCF Payout Ratio = Dividends Paid / Free Cash Flow × 100
FCF payout and earnings payout:
- FCF represents operating cash flow after capital expenditures
- FCF payout compares dividends paid with free cash flow
- FCF payout above 100% means dividends paid exceeded free cash flow for the period
- Earnings payout compares dividends paid with net income
Reading the series: Use the chart and table to compare dividend payments with cash generation over time.
Cognizant Technology Solutions Corporation FCF Payout Ratio Formula & Definition
FCF Payout Ratio measures what percentage of free cash flow is paid out as dividends. Unlike earnings-based payout, it compares dividends with cash generated after capital expenditures.
Expanded definitions: Investopedia, Wikipedia, Corporate Finance Institute
Cognizant Technology Solutions Corporation FCF Payout Ratio FAQ
- What is the FCF payout ratio for Cognizant Technology Solutions Corporation (CTSH)?
- The FCF payout ratio for CTSH stock is 24.93%.
- Is Cognizant Technology Solutions Corporation's FCF payout ratio high or low?
- Cognizant Technology Solutions Corporation's FCF payout ratio of 24.93% is in line with its 5-year average of 25.07%, around the middle of its 5-year range (16.55%–32.84%).
- What is the TTM average FCF payout ratio for Cognizant Technology Solutions Corporation (CTSH)?
- The TTM average FCF payout ratio for CTSH stock is 28.17%.
- What is the 3Y average FCF payout ratio for Cognizant Technology Solutions Corporation (CTSH)?
- The 3Y average FCF payout ratio for CTSH stock is 27.73%.
- What is the 5Y average FCF payout ratio for Cognizant Technology Solutions Corporation (CTSH)?
- The 5Y average FCF payout ratio for CTSH stock is 25.07%.
- What is the 10Y average FCF payout ratio for Cognizant Technology Solutions Corporation (CTSH)?
- The 10Y average FCF payout ratio for CTSH stock is 22.84%.
- What is the 15Y average FCF payout ratio for Cognizant Technology Solutions Corporation (CTSH)?
- The 15Y average FCF payout ratio for CTSH stock is 22.84%.
- What is the 20Y average FCF payout ratio for Cognizant Technology Solutions Corporation (CTSH)?
- The 20Y average FCF payout ratio for CTSH stock is 22.84%.
Cognizant Technology Solutions Corporation FCF Payout Ratio History
| DATE | FCF PAYOUT RATIO |
|---|---|
| 2025-12-31 | 23.51% |
| 2024-12-31 | 32.84% |
| 2023-12-31 | 29.36% |
| 2022-12-31 | 25.22% |
| 2021-12-31 | 22.97% |
| 2020-12-31 | 16.55% |
| 2019-12-31 | 21.50% |
| 2018-12-31 | 21.13% |
| 2017-12-31 | 12.48% |
About Cognizant Technology Solutions Corporation
Cognizant Technology Solutions Corporation functions as a global professional services firm, delivering a comprehensive suite of consulting, technology, and outsourcing solutions across North America, Europe, and other international markets. Its operations are structured into four primary divisions: Financial Services, Healthcare, Products and Resources, and Communications, Media and Technology. Within the Financial Services sector, Cognizant provides advanced services such as enhancing customer experiences, implementing robotic process automation (RPA), and leveraging analytics and artificial intelligence (AI) to address needs in areas like digital lending, fraud prevention, and modern payment systems. For its Healthcare clients, the company focuses on navigating industry shifts toward consumer-centric models, outcome-based agreements, and digital health initiatives, striving to deliver an integrated, seamless, and patient-focused omnichannel experience. Furthermore, Cognizant assists in optimizing operations across various functions, including clinical development, pharmacovigilance, manufacturing, claims management, enrollment procedures, membership administration, and billing processes. Its clientele in this domain spans healthcare providers, payers, and life sciences organizations, encompassing pharmaceutical, biotechnology, and medical device firms. In the Products and Resources segment, the company develops solutions tailored for manufacturers, retailers, and entities within the travel and hospitality sectors, alongside those engaged in logistics, energy, and utility services. Within the Communications, Media and Technology division, Cognizant supports businesses in creating digital content, crafting personalized user experiences, and expediting digital engineering efforts. This includes serving information, media, entertainment, communications, and technology enterprises. Established in 1994, the company maintains its primary corporate office in Teaneck, New Jersey.
- Sector
- Technology
- Industry
- Information Technology Services
- CEO
- Ravi Kumar Singisetti