Teradyne Inc (TER)

Cash ratio

		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
Cash and cash equivalents	US$ in thousands	553,354	510,036	421,904	707,403	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	728,306	593,494
Short-term investments	US$ in thousands	46,312	41,631	38,654	41,300	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
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
Cash ratio		0.96	0.93	0.74	1.36	1.24	1.12	1.06	1.18	1.20	1.11	0.98	1.51	1.71	1.74	1.25	1.91	2.05	1.84	1.31	1.57

December 31, 2024 calculation

Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($553,354K + $46,312K) ÷ $624,579K
= 0.96

Teradyne Inc's cash ratio has varied over the reporting periods provided. The cash ratio measures a 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.

Based on the data provided:
- The cash ratio ranged from a low of 0.74 as of June 30, 2024, to a high of 2.05 as of December 31, 2020.
- The ratio generally fluctuated between 0.74 and 2.05, with some quarters showing significant changes, such as the decrease from 1.91 as of March 31, 2021, to 1.25 as of June 30, 2021.
- Overall, Teradyne Inc's cash ratio remained above 1 throughout the period, indicating that the company generally had sufficient cash to cover its short-term obligations.

It is essential for investors and analysts to monitor changes in the cash ratio to assess the company's liquidity position and its ability to meet short-term financial obligations. A consistent or increasing trend in the cash ratio may indicate a healthier financial position, while a declining trend may raise concerns about liquidity management.