Teradata Corp (TDC)
Solvency ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.26 | 0.28 | 0.26 | 0.25 | 0.25 | 0.27 | 0.26 | 0.17 | 0.15 | 0.16 | 0.17 | 0.18 | 0.19 | 0.20 | 0.21 | 0.21 | 0.22 | 0.23 | 0.22 | 0.21 |
| Debt-to-capital ratio | 0.78 | 0.80 | 0.69 | 0.68 | 0.66 | 0.68 | 0.69 | 0.58 | 0.41 | 0.43 | 0.44 | 0.49 | 0.51 | 0.52 | 0.56 | 0.56 | 0.63 | 0.58 | 0.56 | 0.50 |
| Debt-to-equity ratio | 3.56 | 3.98 | 2.26 | 2.17 | 1.93 | 2.12 | 2.24 | 1.37 | 0.70 | 0.76 | 0.79 | 0.96 | 1.03 | 1.10 | 1.26 | 1.28 | 1.73 | 1.40 | 1.27 | 1.01 |
| Financial leverage ratio | 13.87 | 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 | 7.85 | 6.03 | 5.78 | 4.90 |
Teradata Corp's solvency ratios have shown some fluctuations over the past eight quarters. The debt-to-assets ratio, which indicates the proportion of the company's assets financed by debt, has ranged from 0.31 to 0.37 during this period. The trend appears relatively stable around the 0.34 level, suggesting a moderate dependence on debt to fund its assets.
The debt-to-capital ratio, measuring the extent of a company's capital that is funded by debt, has varied between 0.71 and 0.84. While showing some volatility, the ratio has been consistently above 0.70, indicating a significant reliance on debt as part of the capital structure.
The debt-to-equity ratio, reflecting the proportion of total assets provided by creditors vs. shareholders, has ranged from 2.24 to 5.22. The substantial fluctuations in this ratio suggest varying levels of financial leverage and potential risk associated with high debt levels.
The financial leverage ratio, which assesses the company's ability to meet its financial obligations, has fluctuated between 7.74 and 14.26. This variability indicates changes in the company's financial risk and profitability over time, with higher levels suggesting increased financial leverage and potential vulnerability to economic downturns.
Overall, Teradata Corp's solvency ratios indicate a moderate to high reliance on debt for financing its operations, with some fluctuations in leverage and financial risk levels. Investors and stakeholders may need to closely monitor these ratios to assess the company's ability to sustain its debt levels and meet its financial obligations effectively.
Coverage ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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 |
Based on the data provided for Teradata Corp's interest coverage ratio over the past eight quarters, we observe fluctuations in the company's ability to cover its interest expenses with its earnings before interest and taxes (EBIT).
The interest coverage ratio measures a company's ability to meet interest obligations on its outstanding debt. A higher ratio indicates a stronger ability to cover interest payments, while a lower ratio may signal potential financial distress.
Teradata Corp's interest coverage ratio has exhibited considerable variability during the period under review. In Q3 2023, the ratio significantly improved to 150.00, indicating a robust capability to service its interest obligations. This was a notable increase from the previous quarter, where the ratio stood at 37.20.
The company's interest coverage ratio had also shown solid performance in Q2 2023 and Q1 2023, with ratios of 74.00 and 25.80, respectively. However, it is worth noting that the ratio in Q1 2023 decreased compared to the preceding quarter, signaling a potential decline in the company's ability to cover interest expenses.
Looking back further, Teradata Corp's interest coverage ratios in Q4 2022, Q3 2022, Q2 2022, and Q1 2022 were 13.11, 13.08, 10.80, and 12.11, respectively. These ratios indicate a relatively stable, albeit lower, coverage of interest payments during these quarters.
Overall, Teradata Corp's interest coverage ratios have fluctuated over the past eight quarters, with some periods showing significant improvements while others displayed marginal fluctuations or declines. It is essential for investors and stakeholders to closely monitor these ratios to assess the company's financial health and its ability to meet its debt obligations.