Teradyne Inc (TER)
Return on assets (ROA)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 448,752 | 715,501 | 1,014,590 | 784,147 | 467,468 |
| Total assets | US$ in thousands | 3,486,820 | 3,501,250 | 3,809,420 | 3,652,350 | 2,787,010 |
| ROA | 12.87% | 20.44% | 26.63% | 21.47% | 16.77% |
December 31, 2023 calculation
ROA = Net income ÷ Total assets
= $448,752K ÷ $3,486,820K
= 12.87%
Teradyne, Inc.'s return on assets (ROA) has fluctuated over the past five years, ranging from 16.77% in 2019 to 26.63% in 2021. In 2023, the ROA decreased to 12.87%, reflecting a decline in the company's efficiency in generating profit from its assets compared to the previous year. While the ROA in 2023 is lower than the peak in 2021, it is still higher than the levels seen in 2019 and 2020.
A decrease in ROA could indicate challenges in effectively utilizing the company's assets to generate profits. Investors and analysts may want to further investigate the factors contributing to this decrease to assess the company's operational performance and financial health. Additionally, comparing Teradyne's ROA with industry peers could provide additional insights into its competitive position.
Peer comparison
Dec 31, 2023