Teradyne Inc (TER)

Current ratio

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Total current assets	US$ in thousands	1,816,400	2,162,040	2,257,920	2,576,230	2,415,430
Total current liabilities	US$ in thousands	624,579	659,951	746,263	797,120	700,871
Current ratio		2.91	3.28	3.03	3.23	3.45

December 31, 2024 calculation

Current ratio = Total current assets ÷ Total current liabilities
= $1,816,400K ÷ $624,579K
= 2.91

As an analyst reviewing Teradyne Inc's current ratio over the past five years, the company has demonstrated a consistent ability to meet its short-term obligations with a healthy margin of safety. The current ratio, which measures the company's ability to cover its current liabilities with its current assets, has shown a gradual decline from 3.45 in December 31, 2020, to 2.91 in December 31, 2024. Despite this decline, the current ratio has remained above 2, indicating that Teradyne Inc has maintained a strong liquidity position throughout the period. However, the slight decrease in the current ratio from 2020 to 2024 may suggest a need to monitor the company's liquidity management strategies to ensure continued stability in meeting its short-term obligations.