Teradyne Inc (TER)

Total asset turnover

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Revenue	US$ in thousands	2,819,880	2,676,300	3,155,040	3,702,880	3,121,470
Total assets	US$ in thousands	3,708,710	3,486,820	3,501,250	3,807,670	3,652,350
Total asset turnover		0.76	0.77	0.90	0.97	0.85

December 31, 2024 calculation

Total asset turnover = Revenue ÷ Total assets
= $2,819,880K ÷ $3,708,710K
= 0.76

The total asset turnover ratio of Teradyne Inc has fluctuated over the past five years. In 2020, the ratio was 0.85, indicating that the company generated $0.85 in sales for every dollar of assets. This ratio improved to 0.97 in 2021, suggesting more efficient utilization of assets to generate revenue. However, there was a slight decline in 2022 to 0.90 and a further decrease to 0.77 in 2023. In the most recent year, 2024, the total asset turnover ratio dropped slightly to 0.76. Overall, the trend indicates some variability in how effectively Teradyne is generating sales relative to its asset base, with the ratio showing a downward trend in recent years, possibly signaling a need for improved asset efficiency management.