Teradata Corp (TDC)
Cash ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 420,000 | 486,000 | 569,000 | 592,000 | 529,000 |
| Short-term investments | US$ in thousands | — | 60,000 | — | — | — |
| Total current liabilities | US$ in thousands | 930,000 | 996,000 | 1,007,000 | 1,033,000 | 952,000 |
| Cash ratio | 0.45 | 0.55 | 0.57 | 0.57 | 0.56 |
December 31, 2024 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($420,000K
+ $—K)
÷ $930,000K
= 0.45
The cash ratio for Teradata Corp has been relatively stable over the past five years, ranging from 0.45 to 0.57. This ratio indicates the company's ability to cover its short-term liabilities with its available cash and cash equivalents. A higher cash ratio is typically seen as favorable as it suggests the company can easily meet its current liabilities using its cash reserves alone.
Teradata Corp's cash ratio has hovered around 0.55 to 0.57, indicating that the company has a sufficient level of liquidity to meet its short-term obligations comfortably. However, it's worth noting that the cash ratio decreased slightly to 0.45 as of December 31, 2024, which may require further investigation to understand the underlying reasons for this decline and its potential impact on the company's liquidity position.
Peer comparison
Dec 31, 2024