Teradyne Inc (TER)

Return on assets (ROA)

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Net income	US$ in thousands	542,372	448,752	715,501	1,014,590	784,147
Total assets	US$ in thousands	3,708,710	3,486,820	3,501,250	3,807,670	3,652,350
ROA		14.62%	12.87%	20.44%	26.65%	21.47%

December 31, 2024 calculation

ROA = Net income ÷ Total assets
= $542,372K ÷ $3,708,710K
= 14.62%

Based on the provided data for Teradyne Inc's Return on Assets (ROA) from December 31, 2020, to December 31, 2024, there has been some fluctuation in the company's efficiency in generating profits from its assets.

- In 2020, Teradyne Inc had an ROA of 21.47%, indicating that the company generated $0.2147 in profit for every dollar of assets.
- The ROA improved in 2021 to 26.65%, suggesting that the company became more efficient in utilizing its assets to generate profit.
- However, there was a decrease in ROA in 2022 to 20.44%, indicating a slight decline in efficiency in generating profits from assets compared to the previous year.
- The trend continued with a more significant decrease in 2023, where the ROA dropped to 12.87%, signaling a significant decline in the company's ability to generate profits from its assets.
- In 2024, there was a slight improvement in ROA to 14.62%, but it still remained below the levels seen in 2021 and 2022.

Overall, the analysis of Teradyne Inc's ROA over the five-year period suggests that the company experienced fluctuations in its efficiency in generating profits from its assets. It is essential for investors and stakeholders to further investigate the reasons behind these fluctuations to assess the company's financial performance accurately.