Teradata Corp (TDC)
Payables turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 1,469,000 | 1,498,000 | 1,526,000 | 1,658,000 | 1,720,000 |
| Payables | US$ in thousands | 100,000 | 94,000 | 67,000 | 50,000 | 66,000 |
| Payables turnover | 14.69 | 15.94 | 22.78 | 33.16 | 26.06 |
December 31, 2023 calculation
Payables turnover = Cost of revenue ÷ Payables
= $1,469,000K ÷ $100,000K
= 14.69
Teradata Corp's payables turnover ratio has been fluctuating over the past five years. The ratio decreased from 16.34 in 2020 to 7.18 in 2023. A higher payables turnover ratio indicates that the company is paying its suppliers more frequently within a year. This can signify efficient management of trade payables and potentially strong supplier relationships. Conversely, a lower ratio suggests that the company is taking longer to pay its suppliers.
The decreasing trend in Teradata Corp's payables turnover ratio may indicate a shift in the company's payment practices or perhaps changes in its relationships with suppliers. Further investigation into the reasons behind this trend could provide insights into the company's working capital management and overall financial health.
Peer comparison
Dec 31, 2023