Teradyne Inc (TER)

Quick 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
Cash	US$ in thousands	553,354	510,036	421,904	707,403	757,571	636,961	613,208	649,208	854,773	710,746	572,023	794,603	1,122,200	1,079,450	954,441	831,149	914,121	945,180	728,306	593,494
Short-term investments	US$ in thousands	46,312	41,631	38,654	41,300	62,154	79,570	95,199	92,895	39,612	65,310	209,846	282,016	244,231	233,397	282,121	478,293	522,280	287,789	229,791	211,001
Receivables	US$ in thousands	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—
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
Quick ratio		0.96	0.93	0.74	1.36	1.24	1.12	1.06	1.18	1.20	1.11	0.98	1.51	1.71	1.74	1.25	1.91	2.05	1.84	1.31	1.57

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 some fluctuations over the period from March 31, 2020, to December 31, 2024, ranging from a high of 2.05 to a low of 0.74. A quick ratio above 1 indicates that the company has more liquid assets available to cover its current liabilities, which is generally considered favorable.

Initially, the quick ratio showed an increasing trend, reaching a peak of 2.05 on December 31, 2020, suggesting strong liquidity position. However, there was a slight decline in the ratio by June 30, 2021, which was further followed by a more significant drop to 0.98 by June 30, 2022.

The quick ratio recovered and improved to 1.36 by March 31, 2024, indicating a better ability to meet short-term obligations. However, there was another notable drop to 0.74 by June 30, 2024, implying a potential liquidity challenge for the company at that point in time.

Overall, while the fluctuations in the quick ratio may signal some variability in Teradyne Inc's liquidity position, it is important to further analyze the reasons behind these changes to assess the company's ability to efficiently manage its short-term obligations.