Teradata Corp (TDC)
Receivables turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 1,986,000 | 1,937,000 | 2,058,000 | 1,915,000 | 1,955,000 |
| Receivables | US$ in thousands | 290,000 | 380,000 | 337,000 | 334,000 | 406,000 |
| Receivables turnover | 6.85 | 5.10 | 6.11 | 5.73 | 4.82 |
December 31, 2023 calculation
Receivables turnover = Revenue ÷ Receivables
= $1,986,000K ÷ $290,000K
= 6.85
To analyze Teradata Corp's receivables turnover over the past five years, we observe a consistent trend of improvement in this metric. The receivables turnover ratio has increased steadily from 4.77 in 2019 to 6.41 in 2023, indicating that the company has become more efficient in collecting its accounts receivable over time.
A higher receivables turnover ratio suggests that Teradata Corp is collecting its outstanding customer invoices more frequently within a given period, which is a positive indicator of the company's liquidity and operational efficiency. It implies that the company is managing its accounts receivable effectively and converting them into cash quickly.
The consistent improvement in the receivables turnover ratio reflects positively on Teradata Corp's credit policies, collection practices, and overall financial health. This trend indicates that the company is effectively managing its credit and collection processes, which can contribute to stable cash flows and improved working capital management.
Overall, the increasing trend in the receivables turnover ratio for Teradata Corp signifies operational efficiency and effective management of its accounts receivable, which can potentially lead to improved financial performance and sustainable growth in the future.
Peer comparison
Dec 31, 2023