Teradata Corp (TDC)
Financial leverage ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 1,873,000 | 2,022,000 | 2,169,000 | 2,193,000 | 2,057,000 |
| Total stockholders’ equity | US$ in thousands | 135,000 | 258,000 | 460,000 | 400,000 | 262,000 |
| Financial leverage ratio | 13.87 | 7.84 | 4.72 | 5.48 | 7.85 |
December 31, 2023 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $1,873,000K ÷ $135,000K
= 13.87
Based on the financial leverage ratio data provided for Teradata Corp over the past five years, we observe fluctuations in the company's level of financial leverage. The trend indicates a significant increase in financial leverage from 2019 to 2023, with the ratio climbing from 7.85 to 13.87. This surge suggests that Teradata Corp has been relying more on debt to finance its operations and investments in recent years, potentially exposing the company to higher financial risk.
It is worth noting that a higher financial leverage ratio signifies increased reliance on debt capital relative to equity, which could amplify returns during favorable economic conditions but also heighten the vulnerability of the company to economic downturns or fluctuations in interest rates. Thus, the rising trend in financial leverage ratio for Teradata Corp warrants careful monitoring to assess the company's ability to manage its debt commitments effectively and maintain financial stability in the long term.
Peer comparison
Dec 31, 2023