Teradyne Inc (TER)
Operating return on assets (Operating ROA)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Operating income | US$ in thousands | 593,788 | 501,068 | 831,939 | 1,208,720 | 928,407 |
| Total assets | US$ in thousands | 3,708,710 | 3,486,820 | 3,501,250 | 3,807,670 | 3,652,350 |
| Operating ROA | 16.01% | 14.37% | 23.76% | 31.74% | 25.42% |
December 31, 2024 calculation
Operating ROA = Operating income ÷ Total assets
= $593,788K ÷ $3,708,710K
= 16.01%
Operating ROA is a key financial metric that indicates how efficiently a company generates operating income from its assets. Over the past five years, Teradyne Inc's operating ROA has exhibited fluctuations. Starting at a healthy level of 25.42% on December 31, 2020, the metric increased significantly to 31.74% by December 31, 2021, indicating improved profitability relative to its asset base.
However, by December 31, 2022, Teradyne's operating ROA declined to 23.76%, suggesting a decrease in operational efficiency in converting assets into operating income. This trend continued as the metric dropped further to 14.37% by December 31, 2023, marking a significant decrease in profitability compared to the previous years.
In the most recent period ending on December 31, 2024, Teradyne's operating ROA slightly improved to 16.01%. While this uptick may signal a partial recovery in asset utilization efficiency, the metric still remains below the levels observed in the earlier years.
Overall, the fluctuating trend in Teradyne Inc's operating ROA indicates varying levels of operational efficiency and profitability over the analyzed period, underlining the importance of closely monitoring asset management strategies to enhance performance and sustainability.
Peer comparison
Dec 31, 2024