Teradata Corp (TDC)
Solvency ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-equity ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| 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 |
Teradata Corp's solvency ratios paint a stable and healthy financial picture over the analyzed period. The Debt-to-assets ratio, Debt-to-capital ratio, and Debt-to-equity ratio have consistently remained at 0.00, indicating that the company has no significant long-term debt relative to its assets or capital. This suggests a low financial risk and a strong ability to cover its debt obligations with its available assets.
The Financial leverage ratio, however, has displayed some fluctuation during the period, but with an increasing trend towards the end of the time frame. The ratio increased from 6.16 in March 2020 to 12.81 in December 2024, with a notable spike in March 2024. This suggests that the company's reliance on debt financing has grown significantly and may raise concerns about its financial stability in the long run.
Overall, while Teradata Corp has shown a solid solvency position with minimal debt levels, the increasing trend in the Financial leverage ratio warrants careful monitoring to ensure the company's financial health and sustainability.
Coverage ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Interest coverage | 6.97 | 6.50 | 5.29 | 4.19 | 5.03 | 4.48 | 4.70 | 4.36 | 4.38 | 6.26 | 6.70 | 8.20 | 8.58 | 7.08 | 5.59 | 3.30 | 0.11 | -0.39 | 0.14 | 0.43 |
Teradata Corp's interest coverage ratio shows the company's ability to meet interest payments on its outstanding debt. A higher ratio indicates a stronger ability to cover interest expenses.
Based on the provided data, Teradata's interest coverage ratio fluctuated over the analyzed period. The ratio was below 1 in several quarters, indicating that the company did not generate enough operating income to cover its interest expenses during those periods. However, from March 31, 2021, the interest coverage ratio started to improve significantly, reaching its peak at 8.58 on December 31, 2021. This suggests that the company's earnings were more than sufficient to cover its interest obligations during that quarter.
Although the interest coverage ratio declined in the subsequent quarters, it remained above 1, indicating that Teradata continued to generate enough income to cover its interest costs. The ratio ranged between 4.19 to 6.97 from March 31, 2024, to December 31, 2024, demonstrating a relatively stable ability to meet its interest payments.
Overall, Teradata Corp's interest coverage ratio has shown improvement, indicating a stronger financial position and a reduced risk of defaulting on its debt obligations. Investors and creditors may find this trend reassuring as it suggests the company's ability to manage its debt effectively.