Teradata Corp (TDC)

Activity ratios

Short-term

Turnover ratios

	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
Inventory turnover	108.54	180.00	157.56	200.00	179.62	109.77	86.18	92.00	55.85	88.29	75.65	96.06	54.28	113.79	61.58	58.14	53.42	47.78	31.31	22.35
Receivables turnover	6.85	6.92	7.35	5.61	5.14	7.79	7.57	6.29	6.11	7.12	6.85	5.43	5.73	5.89	5.57	4.21	4.68	6.08	4.06	3.59
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
Working capital turnover	—	—	—	273.43	92.95	37.88	46.81	—	28.19	18.94	13.84	16.60	20.82	27.00	34.35	27.74	14.84	9.67	5.80	4.12

Teradata Corp's inventory turnover ratio has shown fluctuation over the last eight quarters, with values ranging from a low of 43.12 to a high of 99.00. This indicates that the company is able to efficiently manage its inventory levels and convert them into sales. However, the sudden spikes and drops in the ratio may warrant further investigation to understand the reasons behind these fluctuations.

In terms of receivables turnover, Teradata Corp has maintained relatively stable ratios, with values hovering around the 6 to 7 range over the past two years. This consistency suggests that the company is efficient in collecting payments from its customers, which is a positive sign for its cash flow management.

The payables turnover ratio for Teradata Corp has also remained fairly stable, showing a consistent pattern over the eight quarters. The consistent values around 7 to 9 indicate that the company is managing its outstanding payables effectively by settling its obligations in a timely manner.

Lastly, the working capital turnover ratio is not available for the first three quarters of 2023, but it shows a significant increase in Q1 2023 compared to the previous quarters. This sharp rise may signal an improvement in the company's ability to generate revenue from its working capital, reflecting a more efficient use of its resources to drive sales.

Overall, based on the analysis of Teradata Corp's activity ratios, the company appears to be effectively managing its inventory, receivables, payables, and working capital, which bodes well for its operational efficiency and financial health.

Average number of days

		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
Days of inventory on hand (DOH)	days	3.36	2.03	2.32	1.82	2.03	3.33	4.24	3.97	6.54	4.13	4.82	3.80	6.72	3.21	5.93	6.28	6.83	7.64	11.66	16.33
Days of sales outstanding (DSO)	days	53.30	52.75	49.65	65.03	71.06	46.88	48.23	58.05	59.77	51.28	53.26	67.25	63.66	61.99	65.50	86.70	78.04	60.07	89.94	101.71
Number of days of payables	days	25.87	26.87	29.09	23.99	23.88	20.21	20.68	19.34	16.84	25.29	21.95	13.06	11.59	13.52	14.13	21.52	14.55	21.86	33.97	31.10

The activity ratios of Teradata Corp provide insights into how efficiently the company manages its inventory, accounts receivable, and accounts payable.

1. Days of Inventory on Hand (DOH): This ratio measures how many days it takes for the company to sell through its inventory. A lower DOH indicates that the company is efficiently managing its inventory levels. Over the observed periods, there has been some fluctuation in Teradata's DOH, with Q1 and Q2 of 2023 showing higher levels compared to the previous quarters. This could imply potential inventory management challenges or changes in sales patterns during those periods.

2. Days of Sales Outstanding (DSO): DSO reflects how long it takes for the company to collect payment from its customers after a sale is made. A lower DSO is preferable as it signifies faster cash collection. Teradata's DSO has also varied over the quarters, with Q1 and Q4 of 2023 showing relatively higher DSO compared to the previous quarters. This might indicate potential challenges in the company's credit and collection policies.

3. Number of Days of Payables: This ratio represents how long the company takes to pay its suppliers. A higher number of days of payables suggests that the company is taking longer to settle its payables, which can be beneficial in terms of cash flow management. Teradata's days of payables have shown variation, with Q2 and Q3 of 2023 displaying higher levels compared to the preceding periods. This could indicate changes in the company's payment terms with suppliers or alterations in procurement strategies.

In conclusion, the fluctuation in Teradata Corp's activity ratios over the observed quarters suggests potential changes in inventory management, account receivable collection, and accounts payable strategies. Analyzing these ratios over time can provide valuable insights into the company's operational efficiency and working capital management.

Long-term

	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
Fixed asset turnover	23.93	7.95	7.79	7.60	20.55	8.42	8.08	7.57	17.44	6.88	6.30	5.79	11.33	5.62	5.61	5.65	9.09	5.98	4.83	5.27
Total asset turnover	1.06	1.14	1.04	0.96	0.97	1.08	1.06	1.09	0.95	0.97	0.91	0.90	0.87	0.89	0.90	0.88	0.92	1.01	0.72	0.70

Teradata Corp's long-term activity ratios reflect its efficiency in utilizing fixed assets and total assets to generate revenue. The fixed asset turnover ratio has been consistently high over the quarters, averaging around 7.3, indicating that the company generates approximately $7.3 in revenue for every dollar invested in fixed assets. This suggests that Teradata effectively utilizes its fixed assets to generate sales.

On the other hand, the total asset turnover ratio fluctuates, ranging from 0.89 to 1.05. Despite some variability, the company generally generates revenue of less than $1 for every dollar of total assets invested, indicative of lower asset efficiency compared to fixed assets. It is important for Teradata to monitor and potentially improve the efficiency of its total asset utilization to enhance overall operational performance and profitability.