Teradyne Inc (TER)

Cash ratio

		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	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Cash and cash equivalents	US$ in thousands	757,571	636,961	613,208	649,208	854,773	710,746	572,023	794,603	1,122,200	1,079,450	954,441	831,149	914,121	945,180	725,431	593,494	773,924	593,939	495,107	483,728
Short-term investments	US$ in thousands	62,154	79,570	95,199	92,895	39,612	65,310	209,846	282,016	244,231	233,397	282,121	478,293	522,280	287,789	229,791	211,001	137,303	342,538	400,227	421,088
Total current liabilities	US$ in thousands	659,951	640,659	669,785	628,092	746,263	701,941	797,385	712,199	805,120	753,609	985,362	686,842	700,871	671,840	729,713	513,961	539,029	493,711	467,000	441,968
Cash ratio		1.24	1.12	1.06	1.18	1.20	1.11	0.98	1.51	1.70	1.74	1.25	1.91	2.05	1.84	1.31	1.57	1.69	1.90	1.92	2.05

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 fluctuated over the past eight quarters, ranging from a low of 1.62 in Q2 2022 to a high of 2.20 in Q1 2022. The cash ratio measures the company's ability to cover its short-term liabilities with its readily available cash and cash equivalents.

A higher cash ratio indicates that Teradyne has a stronger ability to meet its short-term obligations using its cash on hand. In the most recent quarter, Q4 2023, the cash ratio of 2.13 suggests that the company has sufficient cash reserves to cover 2.13 times its current liabilities.

Overall, the trend in the cash ratio for Teradyne, Inc. shows fluctuations but generally indicates a healthy liquidity position over the analyzed quarters, with the company maintaining a prudent level of cash reserves to cover its short-term obligations.