Teradyne Inc (TER)
Quick ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 553,354 | 757,571 | 854,773 | 1,122,200 | 914,121 |
| Short-term investments | US$ in thousands | 46,312 | 62,154 | 39,612 | 244,231 | 522,280 |
| Receivables | US$ in thousands | — | — | — | — | — |
| Total current liabilities | US$ in thousands | 624,579 | 659,951 | 746,263 | 797,120 | 700,871 |
| Quick ratio | 0.96 | 1.24 | 1.20 | 1.71 | 2.05 |
December 31, 2024 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($553,354K
+ $46,312K
+ $—K)
÷ $624,579K
= 0.96
The quick ratio of Teradyne Inc has shown a decreasing trend over the past five years, starting at a comfortable level of 2.05 in December 2020 and declining to 0.96 by December 2024. While the quick ratio remains above 1 in each year, indicating that the company has more than enough liquid assets to cover its current liabilities, the downward trend may raise concerns about the company's ability to meet its short-term obligations in the near future. This suggests a potential strain on liquidity as the ratio decreases, and it would be prudent for stakeholders to monitor this metric closely to ensure the company's financial health and stability.
Peer comparison
Dec 31, 2024