Teradata Corp (TDC)
Return on equity (ROE)
| 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 stockholders’ equity | US$ in thousands | 133,000 | 135,000 | 258,000 | 460,000 | 400,000 |
| ROE | 85.71% | 45.93% | 12.79% | 31.96% | 32.25% |
December 31, 2024 calculation
ROE = Net income ÷ Total stockholders’ equity
= $114,000K ÷ $133,000K
= 85.71%
The return on equity (ROE) of Teradata Corp has shown fluctuations over the last five years. In December 31, 2020, the ROE was 32.25%, indicating that for every dollar of shareholders' equity, the company generated a return of 32.25%. Subsequently, the ROE decreased slightly to 31.96% by December 31, 2021.
However, in December 31, 2022, there was a significant decline in ROE to 12.79%, suggesting a decrease in the company's profitability relative to its equity. The following year, by December 31, 2023, the ROE recovered substantially to 45.93%, reflecting an improvement in profitability and efficiency in generating returns for shareholders.
By December 31, 2024, Teradata Corp achieved a notably high ROE of 85.71%, demonstrating strong performance in utilizing shareholders' equity to generate profits. Overall, the trend in ROE indicates some volatility but with notable improvements in recent years, showcasing the company's ability to deliver returns to its equity investors.
Peer comparison
Dec 31, 2024