Teradata Corp (TDC)

Interest coverage

		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	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Earnings before interest and tax (EBIT) (ttm)	US$ in thousands	147,000	126,000	121,000	95,000	91,000	130,000	139,000	200,000	218,000	179,000	151,000	89,000	3,000	-11,000	4,000	13,000	19,000	49,000	53,000	51,000
Interest expense (ttm)	US$ in thousands	30,000	29,000	27,000	25,000	24,000	23,000	23,000	25,000	26,000	26,000	27,000	27,000	27,000	28,000	29,000	30,000	32,000	31,000	29,000	26,000
Interest coverage		4.90	4.34	4.48	3.80	3.79	5.65	6.04	8.00	8.38	6.88	5.59	3.30	0.11	-0.39	0.14	0.43	0.59	1.58	1.83	1.96

December 31, 2023 calculation

Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $147,000K ÷ $30,000K
= 4.90

Based on the interest coverage ratios of Teradata Corp over the past eight quarters, there have been fluctuations in the company's ability to cover its interest expenses with its operating income. In Q3 2023, the interest coverage ratio was particularly high at 150.00, indicating a strong ability to meet interest obligations. This was also the case in Q2 2023, with a ratio of 74.00, and to a lesser extent in Q4 2023 with a ratio of 37.20.

However, there were quarters, such as Q1 2023 and Q4 2022, where the interest coverage ratio was lower at 25.80 and 13.11 respectively, suggesting a relatively weaker ability to cover interest expenses. The trend seems to show that the company's interest coverage has been improving since Q4 2022, where the ratio was at its lowest.

Overall, the data indicates that Teradata Corp has generally been able to comfortably cover its interest payments with its operating income, with some fluctuations over the quarters. It is essential for the company to maintain a healthy interest coverage ratio to ensure financial stability and meet its debt obligations effectively.