Teradyne Inc (TER)
Operating return on assets (Operating ROA)
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Operating income (ttm) | US$ in thousands | 540,461 | 517,228 | 512,031 | 502,989 | 514,434 | 550,669 | 636,508 | 738,646 | 833,138 | 930,988 | 1,020,681 | 1,161,563 | 1,208,721 | 1,178,365 | 1,125,626 | 954,703 | 928,408 | 865,984 | 751,244 | 667,289 |
| Total assets | US$ in thousands | 3,708,710 | 3,769,730 | 3,631,710 | 3,410,720 | 3,486,820 | 3,370,660 | 3,394,900 | 3,383,410 | 3,501,250 | 3,319,910 | 3,493,580 | 3,609,150 | 3,807,670 | 3,762,180 | 4,000,920 | 3,719,720 | 3,652,350 | 3,436,510 | 3,252,060 | 2,820,390 |
| Operating ROA | 14.57% | 13.72% | 14.10% | 14.75% | 14.75% | 16.34% | 18.75% | 21.83% | 23.80% | 28.04% | 29.22% | 32.18% | 31.74% | 31.32% | 28.13% | 25.67% | 25.42% | 25.20% | 23.10% | 23.66% |
December 31, 2024 calculation
Operating ROA = Operating income (ttm) ÷ Total assets
= $540,461K ÷ $3,708,710K
= 14.57%
Teradyne Inc's operating return on assets (operating ROA) has shown fluctuating performance over the period from March 31, 2020, to December 31, 2024. The operating ROA started at a strong level of 23.66% in March 2020, gradually increasing to a peak of 32.18% by March 31, 2022. However, after reaching this peak, the operating ROA experienced a decline, dropping to 13.72% by September 30, 2024, before slightly recovering to 14.57% by December 31, 2024.
The trend in operating ROA suggests that Teradyne Inc was initially able to efficiently generate operating profits relative to its assets, with a consistent improvement in performance until 2022. However, the subsequent decline in operating ROA indicates a decrease in efficiency in utilizing its assets to generate operating income in the latter part of the period.
Overall, the analysis of Teradyne Inc's operating ROA indicates a mix of strong performance and periods of decline, highlighting the importance of monitoring operational efficiency and asset utilization for sustainable profitability.
Peer comparison
Dec 31, 2024