Teradata Corp (TDC)
Solvency ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-equity ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Financial leverage ratio | 12.81 | 13.87 | 7.84 | 4.72 | 5.48 |
Teradata Corp's solvency ratios indicate a strong financial position with low leverage and minimal debt levels. The debt-to-assets, debt-to-capital, and debt-to-equity ratios have consistently remained at 0.00 from 2020 to 2024, suggesting that the company's assets and capital are primarily funded through equity and retained earnings rather than debt.
However, the financial leverage ratio has shown some fluctuations over the years, with values of 5.48 in 2020, 4.72 in 2021, 7.84 in 2022, 13.87 in 2023, and 12.81 in 2024. This ratio indicates the extent to which the company relies on debt to finance its operations. Despite the fluctuations, the leverage ratio remains relatively low, which implies that the company is not highly leveraged and has adequate financial flexibility.
Overall, based on these solvency ratios, Teradata Corp appears to have a solid financial structure with a conservative approach to debt management, positioning the company well to weather potential economic challenges and pursue strategic growth initiatives.
Coverage ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Interest coverage | 6.66 | 4.90 | 3.79 | 3.31 | 0.11 |
Teradata Corp's interest coverage ratio has shown significant improvement over the past years. The ratio was quite low at 0.11 on December 31, 2020, indicating a relatively weak ability to cover interest expenses. However, this has steadily increased to 3.31 on December 31, 2021, and continued to improve to 3.79 by December 31, 2022. The trend of improvement has been maintained with ratios of 4.90 and 6.66 on December 31, 2023, and December 31, 2024, respectively.
This positive trend indicates that Teradata Corp's ability to cover interest payments has strengthened over time, reflecting better financial health and a reduced risk of default due to interest obligations. Investors and creditors generally view a higher interest coverage ratio favorably as it signifies the company's ability to meet its interest obligations comfortably.