Teradata Corp (TDC)
Interest coverage
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 147,000 | 91,000 | 218,000 | 3,000 | 13,000 |
| Interest expense | US$ in thousands | 30,000 | 24,000 | 26,000 | 27,000 | 26,000 |
| Interest coverage | 4.90 | 3.79 | 8.38 | 0.11 | 0.50 |
December 31, 2023 calculation
Interest coverage = EBIT ÷ Interest expense
= $147,000K ÷ $30,000K
= 4.90
Teradata Corp's interest coverage ratio has shown a positive trend over the past five years. The ratio has significantly improved from 0.71 in 2019 to 37.20 in 2023, indicating that the company's ability to cover its interest expenses with operating profits has strengthened substantially. This upward trend signals a healthier financial position and lower risk of default on interest payments. The notable increase in the interest coverage ratio over the years reflects the company's enhanced profitability and financial stability. Overall, the consistent improvement in Teradata Corp's interest coverage ratio demonstrates its improving capacity to meet its interest obligations and suggests a favorable outlook for the company's financial health.
Peer comparison
Dec 31, 2023