Teradata Corp (TDC)
Return on total capital
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 193,000 | 147,000 | 91,000 | 86,000 | 3,000 |
| Long-term debt | US$ in thousands | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 133,000 | 135,000 | 258,000 | 460,000 | 400,000 |
| Return on total capital | 145.11% | 108.89% | 35.27% | 18.70% | 0.75% |
December 31, 2024 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $193,000K ÷ ($—K + $133,000K)
= 145.11%
Teradata Corp's return on total capital has shown a significant improvement over the years, reflecting increasing efficiency in generating returns from its capital investments. From a modest 0.75% in December 31, 2020, the return on total capital surged to 18.70% by December 31, 2021, indicating a notable growth in profitability. The trend continued with a substantial increase to 35.27% in December 31, 2022, and further escalated to 108.89% by December 31, 2023, reflecting a remarkable leap in capital efficiency. By December 31, 2024, Teradata Corp achieved an impressive return on total capital of 145.11%, underscoring the company's ability to generate significant profits relative to its invested capital. Overall, the trend suggests a strong performance in capital utilization, signaling positive prospects for the company's financial health and profitability.
Peer comparison
Dec 31, 2024