Teradata Corp (TDC)

Payables turnover

		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	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Cost of revenue (ttm)	US$ in thousands	1,411,000	1,440,000	1,418,000	1,400,000	1,437,000	1,427,000	1,465,000	1,472,000	1,452,000	1,501,000	1,513,000	1,537,000	1,574,000	1,593,000	1,601,000	1,628,000	1,656,000	1,720,000	1,096,000	1,162,000
Payables	US$ in thousands	100,000	106,000	113,000	92,000	94,000	79,000	83,000	78,000	67,000	104,000	91,000	55,000	50,000	59,000	62,000	96,000	66,000	103,000	102,000	99,000
Payables turnover		14.11	13.58	12.55	15.22	15.29	18.06	17.65	18.87	21.67	14.43	16.63	27.95	31.48	27.00	25.82	16.96	25.09	16.70	10.75	11.74

December 31, 2023 calculation

Payables turnover = Cost of revenue (ttm) ÷ Payables
= $1,411,000K ÷ $100,000K
= 14.11

The payables turnover ratio for Teradata Corp has been fluctuating over the past eight quarters. The ratio provides insight into how efficiently the company is managing its accounts payable by measuring how quickly it pays off its suppliers.

From Q1 2022 to Q2 2023, the payables turnover ratio decreased from 9.51 to 6.26, indicating a lengthening of the time taken by the company to pay its suppliers. This may signal potential liquidity issues or changes in the company's payment policies.

However, in Q3 2023, we see a slight improvement with the ratio increasing to 6.87, followed by a further increase to 7.18 in Q4 2023. This uptrend could suggest a more efficient management of payables, leading to quicker payment cycles or better negotiation terms with suppliers.

Overall, while the recent increase in payables turnover is a positive sign, it would be important to monitor future trends to assess the sustainability of this improvement and the company's ability to effectively manage its accounts payable in the long term.