Teradata Corp (TDC)

Debt-to-capital 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 stockholders’ equity	US$ in thousands	135,000	258,000	460,000	400,000	262,000
Debt-to-capital ratio		0.78	0.66	0.41	0.51	0.63

December 31, 2023 calculation

Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $480,000K ÷ ($480,000K + $135,000K)
= 0.78

The debt-to-capital ratio of Teradata Corp has displayed fluctuations over the past five years. In 2023, the ratio increased to 0.82 from 0.71 in 2022, indicating that debt represented 82% of the company's capital structure. This rise in the ratio suggests an increased reliance on debt financing compared to the previous year.

Furthermore, comparing the current ratio to earlier years, we observe a significant upward trend since 2021 when it stood at 0.54. This indicates a gradual shift towards a higher proportion of debt in the capital structure of Teradata Corp over the last three years.

However, it is worth noting that the ratio in 2023 is still below the 2019 level of 0.70, which suggests that the company had previously operated with a higher proportion of debt relative to capital.

Overall, the increasing trend in the debt-to-capital ratio of Teradata Corp may point towards a strategic decision to leverage more debt to fund operations or investments, which can potentially lead to increased financial risk but also higher returns if managed effectively.