Teradata Corp (TDC)
Inventory turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 692,000 | 717,000 | 714,000 | 731,000 | 817,000 |
| Inventory | US$ in thousands | 18,000 | 13,000 | 8,000 | 26,000 | 29,000 |
| Inventory turnover | 38.44 | 55.15 | 89.25 | 28.12 | 28.17 |
December 31, 2024 calculation
Inventory turnover = Cost of revenue ÷ Inventory
= $692,000K ÷ $18,000K
= 38.44
To analyze Teradata Corp's inventory turnover, we looked at the data provided for the years December 31, 2020, 2021, 2022, 2023, and 2024. The inventory turnover ratios for these respective years were 28.17, 28.12, 89.25, 55.15, and 38.44.
The inventory turnover ratio indicates the efficiency of a company in managing its inventory by showing how many times a company's inventory is sold and replaced over a specific period. A higher inventory turnover ratio generally suggests that a company is managing its inventory effectively and quickly turning inventory into sales.
Looking at Teradata Corp's inventory turnover ratios over the years, we observe fluctuations in the ratios. In 2022, there was a significant increase in the inventory turnover ratio to 89.25, which indicates a substantial improvement in inventory management efficiency. However, in subsequent years, the ratio decreased but remained relatively high, indicating that the company continued to efficiently manage its inventory.
Overall, Teradata Corp's inventory turnover ratios suggest that the company has been effective in managing its inventory and turning it into sales, with a notable surge in efficiency in 2022. It is important for the company to continue monitoring and maintaining efficient inventory turnover to support its overall financial performance and profitability.
Peer comparison
Dec 31, 2024