Teradata Corp (TDC)

Debt-to-equity 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-equity ratio		3.56	1.93	0.70	1.03	1.73

December 31, 2023 calculation

Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $480,000K ÷ $135,000K
= 3.56

The debt-to-equity ratio of Teradata Corp has shown significant fluctuations over the past five years. In 2023, the ratio stood at 4.65, indicating that the company had a relatively higher level of debt compared to equity. This could suggest a higher financial risk and potential concerns over the company's ability to meet its debt obligations.

The ratio had increased significantly from 2022 when it was 2.40, further indicating a considerable rise in the company's debt levels relative to its equity. This could be a red flag for investors and creditors who might be cautious about the company's financial stability.

In 2021, the debt-to-equity ratio was 1.18, suggesting a lower level of debt compared to equity, which could signify a healthier financial position for the company. However, this was followed by an increase in 2022 and a subsequent spike in 2023.

In 2020 and 2019, the ratio was 1.50 and 2.32, respectively, showing fluctuations over these years as well. The increasing trend in the debt-to-equity ratio over the years indicates a potential shift towards a more leveraged financial structure for Teradata Corp.

Overall, the trend of increasing debt-to-equity ratio raises concerns about the company's financial leverage and ability to manage its debt effectively. Investors and stakeholders may need to closely monitor Teradata Corp's debt levels and management strategies to assess the associated risks and implications for the company's financial health.