Teradyne Inc (TER)

Working capital 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 current assets	US$ in thousands	1,816,400	2,162,040	2,257,920	2,576,230	2,415,430
Total current liabilities	US$ in thousands	624,579	659,951	746,263	797,120	700,871
Working capital turnover		2.37	1.78	2.09	2.08	1.82

December 31, 2024 calculation

Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $2,819,880K ÷ ($1,816,400K – $624,579K)
= 2.37

Teradyne Inc's working capital turnover has demonstrated variability over the past five years. The ratio increased gradually from 1.82 in 2020 to 2.08 in 2021 and further to 2.09 in 2022, indicating an improvement in efficiency in utilizing its working capital to generate sales. However, there was a slight decrease in 2023 to 1.78, suggesting a potential inefficiency or difficulties in managing working capital during that period. Notably, there was a significant surge in 2024 to 2.37, which could indicate a more efficient utilization of working capital to support sales activity. Overall, the upward trend in the working capital turnover ratio signals an enhancement in the company's ability to efficiently convert its working capital into revenue over the specified period.