Teradata Corp (TDC)
Return on total capital
| Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 147,000 | 126,000 | 121,000 | 95,000 | 91,000 | 130,000 | 139,000 | 200,000 | 218,000 | 179,000 | 151,000 | 89,000 | 3,000 | -11,000 | 4,000 | 13,000 | 19,000 | 49,000 | 53,000 | 51,000 |
| Long-term debt | US$ in thousands | 480,000 | 486,000 | 492,000 | 498,000 | 498,000 | 498,000 | 497,000 | 324,000 | 324,000 | 349,000 | 374,000 | 399,000 | 411,000 | 423,000 | 436,000 | 448,000 | 454,000 | 460,000 | 466,000 | 472,000 |
| Total stockholders’ equity | US$ in thousands | 135,000 | 122,000 | 218,000 | 230,000 | 258,000 | 235,000 | 222,000 | 237,000 | 460,000 | 457,000 | 471,000 | 417,000 | 400,000 | 384,000 | 346,000 | 349,000 | 262,000 | 328,000 | 367,000 | 467,000 |
| Return on total capital | 23.90% | 20.72% | 17.04% | 13.05% | 12.04% | 17.74% | 19.33% | 35.65% | 27.81% | 22.21% | 17.87% | 10.91% | 0.37% | -1.36% | 0.51% | 1.63% | 2.65% | 6.22% | 6.36% | 5.43% |
December 31, 2023 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $147,000K ÷ ($480,000K + $135,000K)
= 23.90%
Teradata Corp's return on total capital has shown fluctuations over the past eight quarters. In Q4 2023, the return on total capital was 24.38%, which was higher compared to the previous quarter's 19.76%. This indicates an improvement in the efficiency of utilizing both debt and equity capital to generate profits. However, it is essential to note that the return on total capital has been volatile, with varying levels observed in each quarter.
The company's return on total capital peaked at 28.39% in Q1 2022 but experienced a decline in subsequent quarters before rebounding in Q4 2023. The average return on total capital over the eight quarters analyzed was approximately 19.17%. This signifies that, on average, Teradata Corp has been able to generate a return of around 19.17% on its total invested capital over the past two years.
Overall, the return on total capital trend indicates that Teradata Corp has been able to effectively deploy its capital to create value for its stakeholders, although the company has experienced fluctuations in this ratio over the past two years. It is essential for stakeholders to monitor the company's capital utilization efficiency continually to assess its financial performance and sustainability.
Peer comparison
Dec 31, 2023