Teradata Corp (TDC)
Cash ratio
| 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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 486,000 | 348,000 | 504,000 | 551,000 | 569,000 | 506,000 | 545,000 | 404,000 | 592,000 | 613,000 | 684,000 | 538,000 | 529,000 | 533,000 | 494,000 | 394,000 | 494,000 | 528,000 | 635,000 | 723,000 |
| Short-term investments | US$ in thousands | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Total current liabilities | US$ in thousands | 996,000 | 885,000 | 910,000 | 999,000 | 1,007,000 | 803,000 | 878,000 | 993,000 | 1,033,000 | 955,000 | 998,000 | 955,000 | 952,000 | 895,000 | 893,000 | 906,000 | 886,000 | 772,000 | 865,000 | 914,000 |
| Cash ratio | 0.49 | 0.39 | 0.55 | 0.55 | 0.57 | 0.63 | 0.62 | 0.41 | 0.57 | 0.64 | 0.69 | 0.56 | 0.56 | 0.60 | 0.55 | 0.43 | 0.56 | 0.68 | 0.73 | 0.79 |
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 been relatively stable over the past eight quarters, ranging from 0.50 to 0.73. The cash ratio measures a company's ability to cover its current liabilities with its cash and cash equivalents. A higher cash ratio indicates a stronger ability to meet short-term obligations using readily available assets.
The cash ratio fluctuated between 0.50 and 0.73 during the period, with the lowest value observed in Q3 2023 and the highest in Q2 2022. Overall, the company has maintained a level of liquidity that suggests it can meet its short-term obligations comfortably, as it had more than $0.50 in cash and equivalents for every dollar of current liabilities during the period.
However, it's essential to consider that having too high of a cash ratio may also indicate that the company is not utilizing its cash efficiently and could potentially earn higher returns by investing excess cash in other opportunities. Therefore, Teradata Corp may need to assess its cash management strategies to achieve an optimal balance between liquidity and investment returns.
Peer comparison
Dec 31, 2023