Teradata Corp (TDC)

Inventory turnover

Dec 31, 2024 Sep 30, 2024 Jun 30, 2024 Mar 31, 2024 Dec 31, 2023 Sep 30, 2023 Jun 30, 2023 Mar 31, 2023 Dec 31, 2022 Sep 30, 2022 Jun 30, 2022 Mar 31, 2022 Dec 31, 2021 Sep 30, 2021 Jun 30, 2021 Mar 31, 2021 Dec 31, 2020 Sep 30, 2020 Jun 30, 2020 Mar 31, 2020
Cost of revenue (ttm) US$ in thousands 690,000 703,000 708,000 724,000 718,000 728,000 707,000 693,000 714,000 706,000 733,000 742,000 731,000 757,000 772,000 792,000 817,000 856,000 868,000 909,000
Inventory US$ in thousands 18,000 16,000 22,000 16,000 13,000 8,000 9,000 7,000 8,000 13,000 17,000 16,000 26,000 17,000 20,000 16,000 29,000 14,000 26,000 28,000
Inventory turnover 38.33 43.94 32.18 45.25 55.23 91.00 78.56 99.00 89.25 54.31 43.12 46.38 28.12 44.53 38.60 49.50 28.17 61.14 33.38 32.46

December 31, 2024 calculation

Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $690,000K ÷ $18,000K
= 38.33

Teradata Corp's inventory turnover has fluctuated over the past few years, indicating variability in how efficiently the company manages its inventory. The inventory turnover ratio measures the number of times a company sells and replaces its inventory during a specific period.

From March 31, 2020, to June 30, 2022, the inventory turnover ratio ranged from 32.46 to 43.12, showing a relatively stable turnover rate. However, there was a notable increase in September 2022 to December 2022, with the ratio reaching 89.25, suggesting a significant improvement in inventory management efficiency during that period.

Subsequently, the ratio decreased in March 2023 to June 2024, reflecting a decline in inventory turnover efficiency. The lowest turnover ratio was observed on March 31, 2024, at 32.18. However, the ratio slightly increased in September 2024, reaching 43.94.

Overall, Teradata Corp's inventory turnover has shown fluctuations, indicating varying levels of efficiency in managing its inventory. It is essential for the company to monitor and control its inventory levels effectively to ensure optimal turnover rates.