Teradata Corp (TDC)
Current ratio
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Total current assets | US$ in thousands | 749,000 | 703,000 | 665,000 | 769,000 | 869,000 | 738,000 | 880,000 | 1,006,000 | 1,028,000 | 855,000 | 921,000 | 863,000 | 1,106,000 | 1,064,000 | 1,146,000 | 1,075,000 | 1,044,000 | 965,000 | 948,000 | 974,000 |
| Total current liabilities | US$ in thousands | 930,000 | 875,000 | 889,000 | 983,000 | 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 |
| Current ratio | 0.81 | 0.80 | 0.75 | 0.78 | 0.87 | 0.83 | 0.97 | 1.01 | 1.02 | 1.06 | 1.05 | 0.87 | 1.07 | 1.11 | 1.15 | 1.13 | 1.10 | 1.08 | 1.06 | 1.08 |
December 31, 2024 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $749,000K ÷ $930,000K
= 0.81
Teradata Corp's current ratio has fluctuated over the past few years, starting at a relatively stable level around 1.08 in 2020. The ratio improved slightly to 1.15 by June 30, 2021 but then began to decline.
The current ratio dropped to 0.87 by March 31, 2022, which may indicate potential liquidity concerns as the company's current assets may be insufficient to cover its short-term liabilities. This trend continued with further decreases in subsequent periods, reaching a low of 0.75 by June 30, 2024.
A current ratio below 1 suggests that the company may have difficulty meeting its short-term obligations with its current assets alone. Investors and creditors may view a decreasing current ratio negatively, as it could indicate financial instability or an inability to efficiently manage current assets and liabilities. Teradata Corp may need to address its liquidity position to ensure its financial health and sustainability in the long term.
Peer comparison
Dec 31, 2024