Teradata Corp (TDC)
Cash conversion cycle
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 9.52 | 8.31 | 11.34 | 8.07 | 6.61 | 4.01 | 4.65 | 3.69 | 4.09 | 6.72 | 8.47 | 7.87 | 12.98 | 8.20 | 9.46 | 7.37 | 12.96 | 5.97 | 10.93 | 11.24 |
| Days of sales outstanding (DSO) | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Number of days of payables | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Cash conversion cycle | days | 9.52 | 8.31 | 11.34 | 8.07 | 6.61 | 4.01 | 4.65 | 3.69 | 4.09 | 6.72 | 8.47 | 7.87 | 12.98 | 8.20 | 9.46 | 7.37 | 12.96 | 5.97 | 10.93 | 11.24 |
December 31, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 9.52 + — – —
= 9.52
The cash conversion cycle of Teradata Corp has shown fluctuating trends over the past few years. It measures the time it takes for the company to convert its investments in inventory and other resources into cash flows from sales.
In the most recent period ending December 31, 2024, the cash conversion cycle was 9.52 days. This indicates that Teradata was able to efficiently convert its investments into cash relatively quickly during that period.
However, the company has experienced some variability in its cash conversion cycle in recent quarters. For example, there was a significant increase in the cycle to 12.98 days in December 31, 2021, followed by a decrease to 3.69 days in March 31, 2023. Such fluctuations may signal changes in the company's management of working capital and operational efficiency.
Overall, Teradata Corp should focus on maintaining a stable and efficient cash conversion cycle to ensure optimal utilization of its resources and sustainable financial performance. Tracking this metric closely can help the company identify areas for improvement and enhance its overall cash flow management.
Peer comparison
Dec 31, 2024