Teradata Corp (TDC)
Quick ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 486,000 | 569,000 | 592,000 | 529,000 | 494,000 |
| Short-term investments | US$ in thousands | — | — | — | — | — |
| Receivables | US$ in thousands | 290,000 | 380,000 | 337,000 | 334,000 | 406,000 |
| Total current liabilities | US$ in thousands | 996,000 | 1,007,000 | 1,033,000 | 952,000 | 886,000 |
| Quick ratio | 0.78 | 0.94 | 0.90 | 0.91 | 1.02 |
December 31, 2023 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($486,000K
+ $—K
+ $290,000K)
÷ $996,000K
= 0.78
The quick ratio of Teradata Corp has seen a gradual decline over the past five years, decreasing from 1.11 in 2019 to 0.86 in 2023. This trend suggests a potential weakening in the company's ability to meet its short-term obligations with its most liquid assets.
A quick ratio below 1 indicates that the company may have difficulties in meeting its current liabilities using its quick assets, such as cash and marketable securities, without relying on inventory. In the case of Teradata Corp, the decreasing trend in the quick ratio raises concerns about its liquidity position and ability to quickly cover its short-term obligations.
It is important for stakeholders to closely monitor this trend and assess the company's ability to generate sufficient cash flow or access external funding sources, as a consistently low quick ratio could indicate financial distress or operational inefficiencies that may impact the company's sustainability in the long run.
Peer comparison
Dec 31, 2023