Teradyne Inc (TER)

Cash ratio

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Cash and cash equivalents	US$ in thousands	757,571	854,773	1,122,200	914,121	773,924
Short-term investments	US$ in thousands	62,154	39,612	244,231	522,280	137,303
Total current liabilities	US$ in thousands	659,951	746,263	805,120	700,871	539,029
Cash ratio		1.24	1.20	1.70	2.05	1.69

December 31, 2023 calculation

Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($757,571K + $62,154K) ÷ $659,951K
= 1.24

The cash ratio of Teradyne, Inc. has displayed fluctuations over the past five years. The cash ratio measures the company's ability to cover its short-term liabilities with its cash and cash equivalents. A higher cash ratio indicates a stronger ability to cover short-term obligations.

In 2023, the cash ratio was 2.13, slightly higher than the previous year's ratio of 1.93 in 2022. This increase suggests that Teradyne had improved liquidity in 2023 compared to 2022.

Comparing 2023 to earlier years, the cash ratio was lower than in 2021 and 2020 when it was 2.21 and 2.42, respectively. However, it was higher than in 2019, which had a ratio of 2.04. This indicates that the company had a lower ability to cover short-term liabilities in 2023 than in 2021 and 2020 but had improved from 2019.

Overall, the cash ratio of Teradyne, Inc. has fluctuated over the past five years, indicating varying levels of liquidity and ability to cover short-term obligations.