Teradyne Inc (TER)

Current ratio

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Total current assets	US$ in thousands	2,162,040	2,257,920	2,576,230	2,415,430	1,658,880
Total current liabilities	US$ in thousands	659,951	746,263	805,120	700,871	539,029
Current ratio		3.28	3.03	3.20	3.45	3.08

December 31, 2023 calculation

Current ratio = Total current assets ÷ Total current liabilities
= $2,162,040K ÷ $659,951K
= 3.28

The current ratio measures a company's ability to meet its short-term obligations with its current assets. A higher current ratio indicates a stronger liquidity position.

Teradyne, Inc.'s current ratio has fluctuated over the past five years, ranging from 3.03 to 3.45. In 2023, the current ratio improved to 3.28 compared to 3.03 in 2022, suggesting that the company has increased its ability to cover short-term liabilities with current assets.

While the current ratio dipped in 2022, possibly indicating some strain on liquidity, it rebounded in 2023 to a level similar to the ratios observed in 2021 and 2020. This consistency in maintaining a current ratio above 3 indicates that Teradyne has generally maintained a healthy liquidity position over the five-year period, with a comfortable cushion to meet short-term obligations.

Overall, Teradyne, Inc.'s current ratio performance suggests a sound liquidity position, which is essential for the company to fund its ongoing operations and meet its financial obligations in the short term.