Teradyne Inc (TER)

Current 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
Total current assets	US$ in thousands	1,816,400	1,838,870	1,756,390	2,065,390	2,162,040	2,099,360	2,123,840	2,111,980	2,257,920	2,127,550	2,270,440	2,374,380	2,576,230	2,521,180	2,699,470	2,501,100	2,415,430	2,243,630	2,096,880	1,702,580
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
Current ratio		2.91	3.09	2.80	3.75	3.28	3.28	3.17	3.36	3.03	3.03	2.85	3.33	3.23	3.35	2.74	3.64	3.45	3.34	2.86	3.31

December 31, 2024 calculation

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

Teradyne Inc's current ratio has shown fluctuations over the periods under consideration. The current ratio reflects the company's ability to meet its short-term obligations with its current assets.

From March 31, 2020, to December 31, 2024, the current ratio ranged from a low of 2.74 to a high of 3.75. The ratio peaked at 3.75 on March 31, 2024, indicating the company had $3.75 in current assets for every $1 in current liabilities, suggesting a strong liquidity position.

On the other hand, the lowest ratio of 2.74 on June 30, 2021, could be a cause for concern, as it indicates a decreased ability to cover short-term obligations with current assets. However, it is important to note that the ratio improved in subsequent periods.

Overall, Teradyne Inc has maintained a current ratio above 2 throughout the period, which generally indicates a healthy liquidity position. The company's ability to consistently meet short-term debt obligations is reflected in these current ratio values.