Teradyne Inc (TER)
Operating return on assets (Operating ROA)
| 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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Operating income (ttm) | US$ in thousands | 501,067 | 543,331 | 630,866 | 738,948 | 831,939 | 921,787 | 1,012,680 | 1,153,562 | 1,200,720 | 1,178,365 | 1,125,626 | 954,703 | 928,408 | 865,984 | 751,244 | 667,289 | 553,656 | 494,273 | 482,942 | 469,348 |
| Total assets | US$ in thousands | 3,486,820 | 3,370,660 | 3,394,900 | 3,383,410 | 3,501,250 | 3,319,910 | 3,488,430 | 3,609,150 | 3,809,420 | 3,762,180 | 4,000,920 | 3,719,720 | 3,652,350 | 3,436,510 | 3,249,190 | 2,820,390 | 2,787,010 | 2,698,790 | 2,671,510 | 2,616,640 |
| Operating ROA | 14.37% | 16.12% | 18.58% | 21.84% | 23.76% | 27.77% | 29.03% | 31.96% | 31.52% | 31.32% | 28.13% | 25.67% | 25.42% | 25.20% | 23.12% | 23.66% | 19.87% | 18.31% | 18.08% | 17.94% |
December 31, 2023 calculation
Operating ROA = Operating income (ttm) ÷ Total assets
= $501,067K ÷ $3,486,820K
= 14.37%
Operating return on assets (ROA) is a key financial ratio that measures a company's efficiency in generating operating profits relative to its total assets. It is calculated by dividing operating income by average total assets.
Analyzing Teradyne, Inc.'s operating ROA over the past eight quarters reveals a declining trend. In Q4 2023, the operating ROA was 14.98%, down from 16.50% in the previous quarter. This marks a continuation of the decreasing trend observed from the highest point of 32.85% in Q1 2022.
The declining operating ROA may indicate that Teradyne, Inc. is becoming less efficient in utilizing its assets to generate operating profits. This could be a cause for concern as it suggests that the company may be facing challenges in maintaining profitability relative to its asset base.
Further analysis of the underlying factors driving the decrease in operating ROA, such as changes in operating income or asset utilization, would be necessary to have a more comprehensive understanding of Teradyne, Inc.'s financial performance. Additionally, comparisons with industry benchmarks and peer companies would provide valuable context for evaluating the company's operating ROA performance.
Peer comparison
Dec 31, 2023