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.