Teradyne Inc (TER)

Activity ratios

Short-term

Turnover 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
Inventory turnover	3.93	3.90	1.52	3.60	3.66	1.31	3.45	3.55	3.96	4.29	4.64	5.69	6.15	6.45	6.32	5.17	6.01	6.78	5.70	5.72
Receivables turnover	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—
Payables turnover	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—
Working capital turnover	2.36	2.20	2.39	1.75	1.78	1.87	1.97	2.03	2.09	2.32	2.33	2.21	2.08	2.02	2.01	1.76	1.82	1.92	2.04	2.11

Teradyne Inc's inventory turnover ratio has been fluctuating over the past few years, with a general decreasing trend observed since March 2023. The decrease in inventory turnover may indicate potential issues with managing and selling inventory efficiently.

The receivables turnover ratio data is not available, suggesting that there might be confidentiality concerns or that the company does not disclose this information.

Similarly, the payables turnover ratio data is also unavailable, making it challenging to analyze the efficiency of Teradyne's payables management.

In terms of the working capital turnover ratio, there is variability in the figures, but overall, the company seems to be effectively utilizing its working capital to generate sales. However, a moderate decrease in the ratio is noticeable in the period from March 2024 to September 2024, possibly indicating a slight reduction in efficiency in utilizing working capital during that time frame.

Overall, while the analysis of activity ratios provides insights into Teradyne Inc's operational efficiency, the lack of information on receivables and payables turnover ratios limits the depth of the analysis.

Average number of days

		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
Days of inventory on hand (DOH)	days	92.89	93.65	240.41	101.26	99.61	277.62	105.79	102.73	92.11	84.99	78.63	64.10	59.36	56.55	57.78	70.60	60.72	53.80	64.05	63.76
Days of sales outstanding (DSO)	days	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—
Number of days of payables	days	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—

Based on the provided data for Teradyne Inc, let's analyze the activity ratios:

1. Days of Inventory on Hand (DOH):
- Teradyne's DOH fluctuated over the periods provided, ranging from 53.80 days to 277.62 days.
- The level of inventory held by the company seems to have increased significantly by September 30, 2023, compared to the previous periods.
- The high DOH in September 30, 2023 suggests that Teradyne may have excess or slow-moving inventory that could impact its liquidity and working capital management.

2. Days of Sales Outstanding (DSO):
- Data for DSO is not provided, which means we cannot analyze the efficiency of Teradyne in collecting its accounts receivable over the given periods.

3. Number of Days of Payables:
- Similar to DSO, there is no data available for the number of days of payables for Teradyne. This information is essential to understand how long the company takes to pay its suppliers and manage its working capital effectively.

In conclusion, the data provided primarily focuses on the Days of Inventory on Hand for Teradyne Inc. The company's inventory management may require closer monitoring, especially in periods where the DOH is exceptionally high, to ensure efficient working capital utilization and overall operational effectiveness. Further insight into DSO and payables turnover would provide a more comprehensive analysis of Teradyne's activity ratios and working capital management.

Long-term

	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
Fixed asset turnover	—	—	—	—	—	—	—	6.97	7.54	6.94	7.10	7.87	8.12	7.91	7.54	7.95	7.91	7.81	7.86	7.54
Total asset turnover	0.76	0.73	0.74	0.78	0.77	0.81	0.84	0.89	0.90	1.00	0.98	1.02	0.97	0.95	0.86	0.86	0.85	0.88	0.85	0.89

Teradyne Inc's Fixed Asset Turnover ratio demonstrates the efficiency of the company in utilizing its fixed assets to generate sales revenue. The ratio fluctuated over the years, ranging from a high of 8.12 in December 2021 to a low of 6.94 in September 2022. The general trend shows some variability but indicates that the company has been relatively effective in generating sales from its fixed assets.

On the other hand, the Total Asset Turnover ratio reflects how efficiently Teradyne Inc is utilizing all its assets to generate sales. The ratio varied from 0.73 in September 2024 to 1.02 in March 2022. There was some volatility in this ratio, indicating fluctuations in how effectively the company was using its assets to generate revenue.

Overall, the trend in both ratios suggests that Teradyne Inc has been reasonably efficient in utilizing its assets to drive sales revenue, although there have been some fluctuations over the years. It is important for the company to continuously monitor and optimize its asset utilization to ensure sustained operational efficiency.