Teradyne Inc (TER)
Operating return on assets (Operating ROA)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Operating income | US$ in thousands | 501,068 | 831,939 | 1,200,720 | 928,407 | 553,654 |
| Total assets | US$ in thousands | 3,486,820 | 3,501,250 | 3,809,420 | 3,652,350 | 2,787,010 |
| Operating ROA | 14.37% | 23.76% | 31.52% | 25.42% | 19.87% |
December 31, 2023 calculation
Operating ROA = Operating income ÷ Total assets
= $501,068K ÷ $3,486,820K
= 14.37%
Teradyne, Inc.'s operating return on assets (operating ROA) has displayed fluctuations over the past five years, ranging from 14.98% in 2023 to 31.76% in 2021. The declining trend in operating ROA from 2021 to 2023 indicates a decrease in the company's ability to generate operating income from its assets during this period. This decline could be attributed to various factors such as increased operating expenses, lower revenue generation, or changes in asset utilization efficiency. It is essential for Teradyne, Inc. to investigate the reasons behind this decline in operating ROA and take necessary actions to improve its operational efficiency and profitability. Additionally, the company should focus on optimizing its asset management to enhance its overall financial performance in the future.
Peer comparison
Dec 31, 2023