Teradata Corp (TDC)
Return on equity (ROE)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 62,000 | 33,000 | 147,000 | 129,000 | -20,000 |
| Total stockholders’ equity | US$ in thousands | 135,000 | 258,000 | 460,000 | 400,000 | 262,000 |
| ROE | 45.93% | 12.79% | 31.96% | 32.25% | -7.63% |
December 31, 2023 calculation
ROE = Net income ÷ Total stockholders’ equity
= $62,000K ÷ $135,000K
= 45.93%
Teradata Corp's return on equity (ROE) has exhibited significant fluctuations over the past five years. The ROE increased substantially from -7.63% in 2019 to 45.93% in 2023, representing a strong rebound and improvement in profitability. This suggests that the company has been effectively utilizing its equity to generate higher profits for shareholders.
The ROE was relatively stable in 2020 and 2021, with values of 32.25% and 31.96%, respectively. This indicates consistent performance in generating returns on equity during those years.
In 2022, there was a noticeable increase in ROE to 12.79% compared to the previous year. Although this is a positive sign, the ROE was significantly lower compared to the subsequent years, indicating a potential dip in profitability or efficiency in that period.
Overall, Teradata Corp's ROE performance has shown both volatility and resilience, with a notable improvement in recent years. Investors and stakeholders should continue to monitor the company's ROE trend to assess its financial health and profitability in the future.
Peer comparison
Dec 31, 2023