Teradata Corp (TDC)

Current 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
Total current assets	US$ in thousands	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	1,014,000	978,000	1,129,000	1,302,000
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
Current ratio		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	1.14	1.27	1.31	1.42

December 31, 2023 calculation

Current ratio = Total current assets ÷ Total current liabilities
= $869,000K ÷ $996,000K
= 0.87

The current ratio measures a company's ability to cover its short-term liabilities with its current assets. A higher current ratio indicates the company has more current assets relative to its current liabilities.

For Teradata Corp, the current ratio has fluctuated over the past eight quarters. In Q4 2023, the current ratio was 0.87, which was lower compared to the previous quarter. The downward trend in the current ratio may raise concerns about the company's ability to meet its short-term obligations.

It is important to note that a current ratio below 1 suggests that the company may have difficulty in meeting its short-term liabilities with its current assets alone. In this case, investors and creditors may closely monitor Teradata Corp's liquidity position to assess the company's financial health and ability to weather any potential financial challenges.