Teradata Corp (TDC)
Operating return on assets (Operating ROA)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Operating income | US$ in thousands | 186,000 | 118,000 | 231,000 | 16,000 | 10,000 |
| Total assets | US$ in thousands | 1,873,000 | 2,022,000 | 2,169,000 | 2,193,000 | 2,057,000 |
| Operating ROA | 9.93% | 5.84% | 10.65% | 0.73% | 0.49% |
December 31, 2023 calculation
Operating ROA = Operating income ÷ Total assets
= $186,000K ÷ $1,873,000K
= 9.93%
The operating return on assets (ROA) of Teradata Corp has fluctuated over the past five years. In 2023, the operating ROA stood at 9.93%, showing an improvement compared to the prior year's 5.84%. This indicates that the company generated approximately 9.93 cents of operating income for each dollar of assets employed in 2023.
The significant increase in operating ROA from 2022 to 2023 suggests enhanced operational efficiency and profitability. When compared to the relatively higher operating ROA of 10.65% in 2021, the 2023 performance is slightly lower, but still robust.
In contrast, the operating ROA was notably lower in 2020 and 2019 at 0.73% and 0.49% respectively. The substantial improvements in the recent years signify that Teradata Corp has made strides in optimizing its asset utilization and operational effectiveness.
Overall, the trend in operating ROA for Teradata Corp indicates a positive trajectory, with a marked improvement in 2023 signaling effective management of assets to generate operating profits.
Peer comparison
Dec 31, 2023