Teradata Corp (TDC)
Cash ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 486,000 | 569,000 | 592,000 | 529,000 | 494,000 |
| Short-term investments | US$ in thousands | — | — | — | — | — |
| Total current liabilities | US$ in thousands | 996,000 | 1,007,000 | 1,033,000 | 952,000 | 886,000 |
| Cash ratio | 0.49 | 0.57 | 0.57 | 0.56 | 0.56 |
December 31, 2023 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($486,000K
+ $—K)
÷ $996,000K
= 0.49
The cash ratio of Teradata Corp has shown a slight decrease in recent years, declining from 0.66 in 2019 to 0.57 in 2023. The cash ratio measures the company's ability to cover its short-term liabilities exclusively with its cash and cash equivalents. A lower cash ratio indicates a lower level of cash reserves relative to short-term obligations. In Teradata's case, the downward trend in the cash ratio may signal a decreasing ability to fulfill immediate payment obligations solely from cash on hand. This could potentially indicate a need for improved cash management or liquidity strategies to better safeguard against short-term liquidity risks. Further analysis of the company's overall liquidity position and cash management practices would provide deeper insights into its financial health and ability to meet short-term obligations.
Peer comparison
Dec 31, 2023