Teradata Corp (TDC)
Profitability ratios
Return on sales
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Gross profit margin | 56.14% | 55.81% | 57.63% | 53.21% | 48.85% |
| Operating profit margin | 9.37% | 6.09% | 11.22% | 0.84% | 0.51% |
| Pretax margin | 5.89% | 3.46% | 9.33% | -1.25% | -0.66% |
| Net profit margin | 3.12% | 1.70% | 7.14% | 6.74% | -1.02% |
Teradata Corp's profitability ratios have shown variations over the past five years. The gross profit margin has been relatively stable, ranging from 50.29% in 2019 to 61.87% in 2021, indicating the company's ability to generate profits from its core business operations.
The operating profit margin has shown an improving trend over the last five years, with a notable increase from 0.53% in 2019 to 12.05% in 2021. This suggests that Teradata Corp has been able to control its operating expenses more effectively and improve its operational efficiency.
The pretax margin also reflects an upward trend, reaching 10.02% in 2021 from negative figures in the previous years. This indicates that the company has been able to generate higher profits before accounting for taxes, showing improved overall financial performance.
The net profit margin, which represents the bottom line profitability after accounting for all expenses, has shown fluctuations over the years. While it experienced a significant increase in 2021 to 7.67%, it dropped to 1.84% in 2022. This suggests that Teradata Corp may have faced some challenges in maintaining consistent bottom-line profitability.
Overall, Teradata Corp's profitability ratios demonstrate improvements in operational efficiency and financial performance over the past few years, but there are fluctuations in net profit margin that may require further analysis to understand the underlying causes.
Return on investment
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 9.93% | 5.84% | 10.65% | 0.73% | 0.49% |
| Return on assets (ROA) | 3.31% | 1.63% | 6.78% | 5.88% | -0.97% |
| Return on total capital | 23.90% | 12.04% | 27.81% | 0.37% | 1.82% |
| Return on equity (ROE) | 45.93% | 12.79% | 31.96% | 32.25% | -7.63% |
Teradata Corp's profitability ratios have displayed varying trends over the past five years. The Operating return on assets (Operating ROA) has exhibited an increasing trend from 2019 to 2023, reaching 9.93% in 2023, indicating that the company is generating more operating income per dollar of assets.
The Return on assets (ROA) has also shown fluctuations over the same period, with a peak in 2021 at 6.78% followed by a decline in subsequent years. This suggests that Teradata Corp's overall profitability in relation to its total assets has not been consistent.
The Return on total capital has experienced significant fluctuations but generally shows an increasing trend, reaching 24.38% in 2023. This ratio indicates how effectively the company is utilizing both equity and debt to generate profits.
The Return on equity (ROE) has shown significant volatility over the five-year period, with a notable increase to 45.93% in 2023. This suggests that the company has been able to generate higher profits relative to shareholders' equity, although the ratio has fluctuated significantly in previous years.
In summary, Teradata Corp's profitability ratios reflect a mix of performance trends over the past five years, with improvements in some areas such as Operating ROA and Return on total capital, while showing fluctuations in ROA and substantial volatility in ROE. This analysis indicates the importance of reviewing multiple profitability ratios to gain a comprehensive understanding of Teradata Corp's financial performance.