Teradyne Inc (TER)

Quick ratio

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Cash	US$ in thousands	757,571	854,773	1,122,200	914,121	773,924
Short-term investments	US$ in thousands	62,154	39,612	244,231	522,280	137,303
Receivables	US$ in thousands	422,124	491,145	550,749	497,506	362,368
Total current liabilities	US$ in thousands	659,951	746,263	805,120	700,871	539,029
Quick ratio		1.88	1.86	2.38	2.76	2.36

December 31, 2023 calculation

Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($757,571K + $62,154K + $422,124K) ÷ $659,951K
= 1.88

The quick ratio of Teradyne, Inc. has exhibited some fluctuations over the past five years. The quick ratio measures a company's ability to meet its short-term obligations using its most liquid assets.

In 2023, the quick ratio improved to 2.77 from 2.59 in 2022, indicating a stronger ability to cover its current liabilities with its quick assets. The current quick ratio of 2.77 means that Teradyne has $2.77 in quick assets available for every $1 of current liabilities.

Compared to previous years, the quick ratio was highest in 2020 at 3.13, reflecting a peak in liquidity and ability to meet short-term obligations. The lowest quick ratio in recent years was in 2019 at 2.71.

Overall, with quick ratios consistently above 2.5 in the past five years, Teradyne has demonstrated a strong ability to cover its current liabilities with its quick assets. However, it is important to consider industry benchmarks and trends over time to gauge the company's liquidity position accurately.