Teradata Corp (TDC)

Profitability ratios

Return on sales

Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Gross profit margin 60.46% 60.88% 60.22% 61.87% 55.50%
Operating profit margin 11.94% 10.15% 6.57% 12.05% 0.87%
Pretax margin 9.37% 6.38% 3.73% 10.02% -1.31%
Net profit margin 6.51% 3.38% 1.84% 7.67% 7.03%

Teradata Corp's Gross Profit Margin has shown a consistent improvement over the years, from 55.50% in 2020 to 60.46% in 2024, indicating efficiency in generating revenue after accounting for cost of goods sold.

The Operating Profit Margin has experienced fluctuations, with a significant increase from 0.87% in 2020 to 11.94% in 2024. This indicates the company's ability to control operating expenses and increase profitability from core operations.

The Pretax Margin has also shown an upward trend, starting at -1.31% in 2020 and reaching 9.37% in 2024. This reflects the company's ability to manage pre-tax income relative to total revenue and expenses.

Teradata Corp's Net Profit Margin has shown variability but generally improved from 7.03% in 2020 to 6.51% in 2024. This shows the company's ability to generate net income relative to total revenue, but there may be room for further improvement in overall profitability management.


Return on investment

Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Operating return on assets (Operating ROA) 12.27% 9.93% 5.84% 10.65% 0.73%
Return on assets (ROA) 6.69% 3.31% 1.63% 6.78% 5.88%
Return on total capital 145.11% 108.89% 35.27% 18.70% 0.75%
Return on equity (ROE) 85.71% 45.93% 12.79% 31.96% 32.25%

Teradata Corp's profitability ratios have shown varying performance over the past five years.

- Operating return on assets (Operating ROA) has fluctuated between 0.73% in 2020 to 12.27% in 2024. This ratio indicates the company's ability to generate profit from its assets solely through its operations.

- Return on assets (ROA) has ranged from 1.63% in 2022 to 6.78% in 2021. This ratio reflects Teradata's overall profitability in relation to its total assets, including both operating and non-operating activities.

- Return on total capital has demonstrated significant growth, from 0.75% in 2020 to 145.11% in 2024. This ratio evaluates the company's effectiveness in generating returns on its total invested capital.

- Return on equity (ROE) has seen fluctuations, with values oscillating between 12.79% in 2022 to 85.71% in 2024. ROE measures the company’s profitability in relation to its shareholders' equity, showcasing how well Teradata is utilizing investors' funds to generate profits.

Overall, Teradata Corp's profitability ratios depict a company that has experienced both challenges and successes in generating returns for its shareholders and effectively utilizing its assets and capital over the analyzed period.