Teradata Corp (TDC)
Financial leverage ratio
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 1,704,000 | 1,659,000 | 1,622,000 | 1,745,000 | 1,873,000 | 1,740,000 | 1,869,000 | 1,986,000 | 2,022,000 | 1,818,000 | 1,895,000 | 1,895,000 | 2,169,000 | 2,134,000 | 2,245,000 | 2,203,000 | 2,193,000 | 2,117,000 | 2,102,000 | 2,151,000 |
| Total stockholders’ equity | US$ in thousands | 133,000 | 125,000 | 75,000 | 54,000 | 134,000 | 122,000 | 218,000 | 230,000 | 258,000 | 235,000 | 222,000 | 237,000 | 460,000 | 457,000 | 471,000 | 417,000 | 400,000 | 384,000 | 346,000 | 349,000 |
| Financial leverage ratio | 12.81 | 13.27 | 21.63 | 32.31 | 13.98 | 14.26 | 8.57 | 8.63 | 7.84 | 7.74 | 8.54 | 8.00 | 4.72 | 4.67 | 4.77 | 5.28 | 5.48 | 5.51 | 6.08 | 6.16 |
December 31, 2024 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $1,704,000K ÷ $133,000K
= 12.81
The financial leverage ratio of Teradata Corp has shown fluctuations over the period from March 31, 2020, to December 31, 2024. The ratio started at a relatively high level of 6.16 in March 2020, indicating a significant level of financial leverage. It decreased slightly to 6.08 by June 2020 before dropping more noticeably to 5.51 by September 2020.
Subsequently, the ratio continued to decline, reaching 4.77 by June 2021, suggesting a reduced reliance on debt financing. The trend of decreasing leverage continued with fluctuations until March 2023 when the ratio spiked to 8.63, signifying a significant increase in financial leverage.
From that point, the ratio experienced a substantial surge, reaching its peak at 32.31 by March 31, 2024. This sharp increase could indicate a substantial rise in debt relative to equity. The ratio declined significantly by June 30, 2024, to 21.63 but remained elevated compared to the earlier periods.
In the subsequent quarters, the ratio decreased gradually but remained high, indicating persistent financial leverage. By December 31, 2024, the ratio stood at 12.81, illustrating a significant level of leverage despite the recent decrease.
Overall, the financial leverage ratio of Teradata Corp has exhibited significant fluctuations over the period under review, with periods of both decreasing and increasing leverage. Investors and stakeholders should closely monitor this ratio to assess the company's risk profile and financial health.
Peer comparison
Dec 31, 2024