Teradata Corp (TDC)
Return on assets (ROA)
| 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 |
| Total assets | US$ in thousands | 1,704,000 | 1,873,000 | 2,022,000 | 2,169,000 | 2,193,000 |
| ROA | 6.69% | 3.31% | 1.63% | 6.78% | 5.88% |
December 31, 2024 calculation
ROA = Net income ÷ Total assets
= $114,000K ÷ $1,704,000K
= 6.69%
Based on the provided data, Teradata Corp's return on assets (ROA) has shown some fluctuation over the past five years. In December 2020, the ROA was 5.88%, which increased to 6.78% by December 2021, indicating improved efficiency in generating profits from its assets. However, there was a notable decrease in ROA to 1.63% by December 2022, which may suggest potential challenges or inefficiencies in asset utilization during that period.
In the following years, there was a gradual improvement in ROA, reaching 3.31% by December 2023 and further increasing to 6.69% by December 2024. These positive trends in ROA during the later years may indicate better management of assets and profitability, potentially due to strategic decisions or operational improvements implemented by Teradata Corp.
Overall, while there were fluctuations in Teradata Corp's ROA over the analyzed period, the company managed to demonstrate an upward trend in recent years, showcasing its ability to generate earnings relative to its asset base efficiently. It would be essential for stakeholders to closely monitor these trends to assess the company's effectiveness in utilizing its assets to drive profitability.
Peer comparison
Dec 31, 2024