Teradyne Inc (TER)

Working capital turnover

		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
Revenue (ttm)	US$ in thousands	2,817,600	2,735,316	2,697,790	2,651,934	2,670,386	2,731,622	2,858,923	3,015,666	3,155,045	3,308,256	3,431,684	3,676,648	3,702,884	3,576,805	3,445,788	3,198,719	3,121,468	3,017,150	2,779,704	2,505,221
Total current assets	US$ in thousands	1,816,400	1,838,870	1,756,390	2,065,390	2,162,040	2,099,360	2,123,840	2,111,980	2,257,920	2,127,550	2,270,440	2,374,380	2,576,230	2,521,180	2,699,470	2,501,100	2,415,430	2,243,630	2,096,880	1,702,580
Total current liabilities	US$ in thousands	624,579	594,896	626,374	550,720	659,951	640,659	669,785	628,092	746,263	701,941	797,385	712,199	797,120	753,609	985,362	686,842	700,871	671,840	732,588	513,961
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

December 31, 2024 calculation

Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $2,817,600K ÷ ($1,816,400K – $624,579K)
= 2.36

The working capital turnover ratio measures how efficiently a company is utilizing its working capital to generate sales revenue. A higher ratio indicates better efficiency in utilizing working capital.

Looking at the data for Teradyne Inc's working capital turnover, we observe fluctuations in the ratio over the quarters. From March 31, 2020, to June 30, 2021, the ratio shows a decreasing trend from 2.11 to 2.01, indicating a decline in the efficiency of working capital utilization during this period.

However, from September 30, 2021, to June 30, 2024, the ratio generally shows an increasing trend, reaching the highest point of 2.39 on June 30, 2024. This upward trend suggests that Teradyne Inc's working capital efficiency improved during this period.

Between June 30, 2024, and December 31, 2024, there was a slight decrease in the ratio from 2.39 to 2.36, indicating a slight dip in working capital efficiency in the most recent quarter.

Overall, it is essential for stakeholders to monitor how Teradyne Inc manages its working capital to ensure efficient operations and profitability. The fluctuations in the working capital turnover ratio over time reflect the company's ability to balance its current assets and liabilities effectively to support its business operations and generate revenue.