Teradata Corp (TDC)
Total asset 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 |
| Total assets | US$ in thousands | 1,873,000 | 2,022,000 | 2,169,000 | 2,193,000 | 2,057,000 |
| Total asset turnover | 1.06 | 0.96 | 0.95 | 0.87 | 0.95 |
December 31, 2023 calculation
Total asset turnover = Revenue ÷ Total assets
= $1,986,000K ÷ $1,873,000K
= 1.06
Teradata Corp's total asset turnover ratio has shown a fluctuating trend over the past five years. The ratio improved from 0.92 in 2019 to 0.98 in 2023, indicating that the company generated $0.98 in revenue for every dollar of assets during the most recent fiscal year. This suggests that Teradata has been more efficient in utilizing its assets to generate sales. However, it is essential to note that the ratio decreased in 2020 and then started to increase gradually, reaching its peak in 2023.
The improvement in total asset turnover could be attributed to either an increase in sales relative to assets or a more effective utilization of assets to generate revenue. It is crucial for investors and stakeholders to further analyze the components driving this ratio to understand the underlying reasons for the changes and assess the company's operational efficiency and asset management strategies.
Peer comparison
Dec 31, 2023