Teradata Corp (TDC)

Financial leverage ratio

Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Total assets US$ in thousands 1,704,000 1,873,000 2,022,000 2,169,000 2,193,000
Total stockholders’ equity US$ in thousands 133,000 135,000 258,000 460,000 400,000
Financial leverage ratio 12.81 13.87 7.84 4.72 5.48

December 31, 2024 calculation

Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $1,704,000K ÷ $133,000K
= 12.81

The financial leverage ratio for Teradata Corp has shown significant fluctuations over the past years. It decreased from 5.48 in December 2020 to 4.72 in December 2021, indicating a decrease in the company's reliance on debt financing. However, there was a notable increase to 7.84 in December 2022, followed by a substantial surge to 13.87 in December 2023, suggesting a sharp increase in financial leverage.

By December 2024, the financial leverage ratio slightly decreased to 12.81. These fluctuations in the financial leverage ratio may indicate shifts in the company's capital structure and its ability to meet financial obligations. It is important for stakeholders to closely monitor these changes to assess the company's financial risk and stability.