Teradata Corp (TDC)
Debt-to-assets ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | 480,000 | 498,000 | 324,000 | 411,000 | 454,000 |
| Total assets | US$ in thousands | 1,873,000 | 2,022,000 | 2,169,000 | 2,193,000 | 2,057,000 |
| Debt-to-assets ratio | 0.26 | 0.25 | 0.15 | 0.19 | 0.22 |
December 31, 2023 calculation
Debt-to-assets ratio = Long-term debt ÷ Total assets
= $480,000K ÷ $1,873,000K
= 0.26
The debt-to-assets ratio of Teradata Corp has fluctuated over the past five years. As of December 31, 2023, the ratio stood at 0.34, indicating that 34% of the company's assets were financed by debt. This represents an increase from the previous year's ratio of 0.31.
The trend observed over the last five years shows that the ratio has generally been increasing since December 31, 2021, when it was at its lowest point of 0.25. This could suggest that Teradata Corp has been relying more on debt to finance its operations and investments.
While a higher debt-to-assets ratio can indicate increased financial risk due to higher levels of debt, it can also be a strategic decision to leverage debt for growth opportunities. It is important for the company to manage its debt levels effectively to ensure its financial stability and long-term sustainability.
Peer comparison
Dec 31, 2023