Teradata Corp (TDC)

Net profit margin

Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Net income US$ in thousands 114,000 62,000 33,000 147,000 129,000
Revenue US$ in thousands 1,750,000 1,833,000 1,795,000 1,917,000 1,836,000
Net profit margin 6.51% 3.38% 1.84% 7.67% 7.03%

December 31, 2024 calculation

Net profit margin = Net income ÷ Revenue
= $114,000K ÷ $1,750,000K
= 6.51%

To analyze the net profit margin of Teradata Corp over the provided period, we observe the following trend:

- As of December 31, 2020, the net profit margin stood at 7.03%, indicating that for every dollar of revenue generated, the company retained a profit of approximately $0.0703.
- By December 31, 2021, the net profit margin improved slightly to 7.67%, suggesting a more efficient conversion of revenue into profit.
- A notable decline was observed by December 31, 2022, as the net profit margin dropped significantly to 1.84%. This decline might indicate cost pressures or challenges in maintaining profitability.
- However, the trend reversed by December 31, 2023, with the net profit margin increasing to 3.38%. This recovery might signify successful cost management or revenue enhancement strategies.
- Finally, the net profit margin further improved to 6.51% by December 31, 2024, reflecting a positive trajectory towards enhancing profitability.

Overall, the fluctuation in Teradata Corp’s net profit margin over the period suggests a mix of challenges and improvements in profitability, highlighting the importance of monitoring and addressing factors influencing the company's overall financial performance.