Teradata Corp (TDC)
Gross profit margin
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Gross profit | US$ in thousands | 1,058,000 | 1,116,000 | 1,081,000 | 1,186,000 | 1,019,000 |
| Revenue | US$ in thousands | 1,750,000 | 1,833,000 | 1,795,000 | 1,917,000 | 1,836,000 |
| Gross profit margin | 60.46% | 60.88% | 60.22% | 61.87% | 55.50% |
December 31, 2024 calculation
Gross profit margin = Gross profit ÷ Revenue
= $1,058,000K ÷ $1,750,000K
= 60.46%
Based on the data provided, Teradata Corp's gross profit margin has shown a positive trend over the past five years, starting at 55.50% on December 31, 2020, and gradually increasing to 60.46% by December 31, 2024. This indicates an improvement in the company's ability to generate profits from its sales after accounting for the cost of goods sold.
The gross profit margin is a key indicator of a company's operational efficiency and pricing strategy. Teradata's consistent growth in gross profit margin suggests that the company has been effectively managing its production costs and/or increasing the selling price of its products/services.
It is important to note that a higher gross profit margin generally reflects better profitability and strong pricing power. However, investors and analysts should also consider factors such as industry competition, market dynamics, and overall economic conditions when interpreting changes in the gross profit margin over time.
Peer comparison
Dec 31, 2024