Teradata Corp (TDC)

Short-term

Turnover ratios

Teradata Corp's inventory turnover has shown relatively consistent performance over the years, ranging from 28.12 to 89.25. This suggests that the company efficiently manages its inventory levels and turns them into sales multiple times during the year.

The receivables turnover ratio is not available for analysis as the data is marked as "—", which may indicate that the company does not report a specific value for this ratio or that there may be minimal credit sales.

Similarly, the payables turnover ratio is also not provided, making it difficult to assess Teradata Corp's efficiency in paying its suppliers.

The working capital turnover ratio has demonstrated a strong performance, with values ranging from 19.96 to 85.48. This indicates that the company effectively utilizes its working capital to generate sales revenue. However, the data for the most recent years is not available, limiting a comprehensive analysis of the trend.

Overall, while Teradata Corp appears to efficiently manage its inventory and working capital, further information on receivables turnover and payables turnover would provide a more complete picture of the company's activity ratios.

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Average number of days

Based on the provided data for Teradata Corp's activity ratios, we can analyze the following:

1. Days of Inventory on Hand (DOH):
- Teradata Corp's inventory turnover has fluctuated over the years, ranging from 4.09 days to 12.98 days.
- A lower number of days indicates that the company is selling inventory quickly, which could be interpreted as efficient inventory management.
- However, the increase in inventory days from 2022 to 2024 may suggest that Teradata Corp is holding more inventory, which could tie up working capital.

2. Days of Sales Outstanding (DSO):
- The data for Days of Sales Outstanding is not provided (marked as "— days"), making it challenging to assess how quickly the company collects its receivables.
- Typically, a lower DSO indicates efficient credit management and timely collection of receivables.

3. Number of Days of Payables:
- Similar to DSO, data for the Number of Days of Payables is not provided (marked as "— days"), making it difficult to analyze Teradata Corp's payment practices to suppliers.
- A longer payables period suggests better cash flow management, but it could also strain relationships with suppliers if extended too far.

In conclusion, based on the limited data provided, it appears that Teradata Corp may need to focus on optimizing its inventory turnover to ensure efficient use of resources and monitor its receivables and payables management to maintain healthy cash flow levels.

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Long-term

The Fixed Asset Turnover ratio measures how efficiently a company is utilizing its fixed assets to generate revenue. For Teradata Corp, the ratio has shown a positive trend over the years, increasing from 4.87 in 2020 to 6.98 in 2022. This indicates that the company is becoming more efficient in generating sales from its fixed assets.

On the other hand, the Total Asset Turnover ratio measures how effectively a company is utilizing all its assets to generate revenue. Teradata Corp's Total Asset Turnover ratio has also shown improvement, increasing from 0.84 in 2020 to 1.03 in 2024. This suggests that the company is effectively leveraging all its assets to generate sales.

Overall, both the Fixed Asset Turnover and Total Asset Turnover ratios for Teradata Corp demonstrate an improvement in asset utilization efficiency, indicating positive operational performance and effective management of company resources.