Teradata Corp (TDC)
Working capital turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 1,750,000 | 1,833,000 | 1,795,000 | 1,917,000 | 1,836,000 |
| Total current assets | US$ in thousands | 749,000 | 869,000 | 1,028,000 | 1,106,000 | 1,044,000 |
| Total current liabilities | US$ in thousands | 930,000 | 996,000 | 1,007,000 | 1,033,000 | 952,000 |
| Working capital turnover | — | — | 85.48 | 26.26 | 19.96 |
December 31, 2024 calculation
Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $1,750,000K ÷ ($749,000K – $930,000K)
= —
To analyze Teradata Corp's working capital turnover, we observe a significant increase in the ratio over the years. The working capital turnover ratio has exhibited a positive trend, indicating that the company is efficiently utilizing its working capital to generate sales.
In particular:
- In December 31, 2020, the working capital turnover ratio was noted at 19.96, showing a good level of efficiency.
- By December 31, 2021, the ratio improved to 26.26, reflecting an enhanced ability to convert working capital into revenue.
- The ratio saw a substantial surge to 85.48 by December 31, 2022, reaching remarkable levels of efficiency.
- As the data is not available for December 31, 2023 and 2024, we cannot assess the trend beyond 2022.
Overall, the increasing trend in the working capital turnover ratio implies that Teradata Corp's management is effectively managing its working capital to support sales growth, streamline operations, and enhance financial performance.
Peer comparison
Dec 31, 2024