Teradata Corp (TDC)
Current ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| 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 |
| Current ratio | 0.87 | 1.02 | 1.07 | 1.10 | 1.14 |
December 31, 2023 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $869,000K ÷ $996,000K
= 0.87
Teradata Corp's current ratio has shown a declining trend over the past five years, indicating a weakening ability to meet short-term obligations with current assets. The current ratio decreased from 1.14 in 2019 to 0.87 in 2023. This downward trend signals potential liquidity challenges as the ratio has fallen below the ideal threshold of 1. A current ratio below 1 suggests that the company may have difficulty paying off its current liabilities with its current assets alone. Teradata Corp may need to closely manage its working capital and ensure efficient cash flow management to improve its current ratio in the future. Further analysis of the company's liquidity position and working capital management practices would be beneficial to assess its financial health.
Peer comparison
Dec 31, 2023