Teradata Corp (TDC)
Quick 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 486,000 | 348,000 | 504,000 | 551,000 | 569,000 | 506,000 | 545,000 | 404,000 | 592,000 | 613,000 | 684,000 | 538,000 | 529,000 | 533,000 | 494,000 | 394,000 | 494,000 | 528,000 | 635,000 | 723,000 |
| Short-term investments | US$ in thousands | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Receivables | US$ in thousands | 290,000 | 286,000 | 265,000 | 341,000 | 380,000 | 253,000 | 266,000 | 330,000 | 337,000 | 290,000 | 299,000 | 367,000 | 334,000 | 321,000 | 339,000 | 448,000 | 406,000 | 328,000 | 377,000 | 445,000 |
| 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 |
| 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 |
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 shown some fluctuations over the past eight quarters. The quick ratio measures 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 difficulty meeting its current liabilities without selling its inventory.
In Q4 2023, the quick ratio was 0.86, which was lower compared to the previous quarter, indicating a slight decrease in liquidity. However, the quick ratio remained above 0.8, suggesting that the company still has an acceptable level of liquidity to cover its short-term obligations.
The highest quick ratio was observed in Q4 2022 at 1.01, indicating that Teradata Corp had a stronger ability to meet its short-term obligations with its liquid assets during that period. The quick ratio fluctuated slightly in the preceding quarters but did not fall below 0.85, which generally signals a reasonable level of liquidity.
Overall, Teradata Corp's quick ratio has been relatively stable, hovering around 1 or slightly below, which suggests that the company has maintained a satisfactory liquidity position to cover its short-term liabilities. However, it is essential for the company to monitor this ratio closely to ensure continued financial health and stability.
Peer comparison
Dec 31, 2023