Teradata Corp (TDC)

Quick ratio

Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Cash US$ in thousands 420,000 486,000 569,000 592,000 529,000
Short-term investments US$ in thousands 60,000
Receivables US$ in thousands
Total current liabilities US$ in thousands 930,000 996,000 1,007,000 1,033,000 952,000
Quick ratio 0.45 0.55 0.57 0.57 0.56

December 31, 2024 calculation

Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($420,000K + $—K + $—K) ÷ $930,000K
= 0.45

The quick ratio of Teradata Corp has shown a relatively stable trend over the period observed. It was 0.56 as of December 31, 2020, increased slightly to 0.57 by December 31, 2021, and has remained at that level for December 31, 2022. However, there was a slight dip to 0.55 by December 31, 2023, before decreasing further to 0.45 as of December 31, 2024.

With a quick ratio below 1 for all years, it indicates that Teradata Corp may face challenges in meeting its short-term obligations using its most liquid assets. The decreasing trend from 2023 to 2024 raises concerns about the company's ability to cover its short-term liabilities. It is crucial for the company to monitor and manage its liquidity position closely to ensure financial stability and meet its financial obligations efficiently.