Teradyne Inc (TER)
Total asset turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 2,676,300 | 3,155,040 | 3,702,880 | 3,121,470 | 2,294,960 |
| Total assets | US$ in thousands | 3,486,820 | 3,501,250 | 3,809,420 | 3,652,350 | 2,787,010 |
| Total asset turnover | 0.77 | 0.90 | 0.97 | 0.85 | 0.82 |
December 31, 2023 calculation
Total asset turnover = Revenue ÷ Total assets
= $2,676,300K ÷ $3,486,820K
= 0.77
Total asset turnover measures how efficiently a company generates revenue from its total assets. Teradyne, Inc.'s total asset turnover has exhibited fluctuating trends over the past five years, ranging from 0.77 to 0.97. A decrease in total asset turnover from 0.97 in 2021 to 0.77 in 2023 indicates that Teradyne, Inc. is generating $0.77 of revenue for every $1 of total assets, which might imply that the company is less efficient in utilizing its assets to generate sales. Further analysis is needed to understand the reasons behind this decline and assess the overall operational efficiency and effectiveness of asset utilization within the company.
Peer comparison
Dec 31, 2023