Teradata Corp (TDC)
Working capital 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 current assets | US$ in thousands | 869,000 | 1,028,000 | 1,106,000 | 1,044,000 | 1,014,000 |
| Total current liabilities | US$ in thousands | 996,000 | 1,007,000 | 1,033,000 | 952,000 | 886,000 |
| Working capital turnover | — | 92.24 | 28.19 | 20.82 | 15.27 |
December 31, 2023 calculation
Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $1,986,000K ÷ ($869,000K – $996,000K)
= —
The working capital turnover of Teradata Corp has been steadily increasing over the last five years, indicating an improvement in the company's efficiency in managing its working capital.
The ratio improved from 14.84 in 2019 to 85.48 in 2022, showcasing a significant enhancement in utilizing the company's working capital to generate sales. This suggests that Teradata has been able to generate more revenue with its existing level of working capital.
The steady increase in the working capital turnover ratio implies that Teradata has become more effective in converting its working capital into sales revenue over the years. This trend is favorable as it indicates that the company is operating more efficiently and effectively in managing its current assets and liabilities to support its operations.
Peer comparison
Dec 31, 2023