Teradata Corp (TDC)

Liquidity ratios

	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
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
Quick ratio	0.78	0.72	0.85	0.89	0.94	0.95	0.92	0.74	0.90	0.95	0.98	0.95	0.91	0.95	0.93	0.93	1.02	1.11	1.17	1.28
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

Teradata Corp's liquidity ratios, namely the current ratio, quick ratio, and cash ratio, have fluctuated over the past eight quarters. The current ratio, which measures the company's ability to meet short-term obligations with its current assets, has shown a declining trend, dropping from 1.02 in Q4 2022 to 0.87 in Q4 2023. This may raise concerns about the company's short-term financial health and ability to cover its liabilities.

Similarly, the quick ratio, a more stringent measure of liquidity that excludes inventory from current assets, has also experienced a downward trend from 1.01 in Q4 2022 to 0.86 in Q4 2023. This indicates a decrease in the company's ability to cover immediate financial obligations without relying on inventory.

Lastly, the cash ratio, which assesses the company's ability to pay off its current liabilities using only its cash and cash equivalents, also demonstrates a decreasing pattern over the quarters, dropping from 0.64 in Q4 2022 to 0.57 in Q4 2023. This suggests that Teradata Corp may have less cash readily available to cover its short-term obligations.

Overall, the declining trend in Teradata Corp's liquidity ratios warrants further scrutiny and monitoring, as it may indicate potential challenges in meeting its short-term financial commitments. It is essential for the company to closely manage its liquidity position and explore strategies to improve its ability to meet short-term obligations in a sustainable manner.

Additional liquidity measure

		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 conversion cycle	days	30.79	27.91	22.88	42.87	49.21	29.99	31.79	42.67	49.46	30.13	36.13	57.98	58.79	51.68	57.30	71.46	70.32	45.85	67.62	86.94

The cash conversion cycle of Teradata Corp has shown variability over the past eight quarters. In Q4 2023, the company's cash conversion cycle was 12.72 days, indicating that it takes approximately 12.72 days for Teradata to convert its investments in inventory and accounts receivable into cash. This represents an improvement from the previous quarter, where the cycle was 7.97 days.

Notably, in Q2 2023, Teradata Corp achieved a negative cash conversion cycle of -0.16 days, implying a highly efficient cash management process where the company was able to convert its investments into cash before paying its own suppliers. However, this efficiency declined in Q1 2023, with a cycle of 25.35 days, indicating a longer period to convert investments into cash compared to the previous quarters.

Comparing year-over-year performance, there has been a downward trend in the cash conversion cycle for Teradata Corp, with Q4 2022 and Q1 2022 showing longer cycles of 32.70 days and 32.17 days, respectively. Q3 and Q2 2022 saw improvements in efficiency with cycles of 16.67 days and 19.31 days, respectively.

Overall, Teradata Corp has experienced fluctuations in its cash conversion cycle, with recent quarters showing improvements in efficiency, but performance can vary based on operational factors and management strategies influencing inventory turnover and accounts receivable collection.