Teradyne Inc (TER)

Return on assets (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
Net income (ttm)	US$ in thousands	542,372	513,173	495,640	429,417	448,751	503,998	559,367	637,104	715,501	767,240	840,473	971,005	1,014,589	986,881	952,881	813,470	784,149	712,890	626,032	534,521
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
ROA		14.62%	13.61%	13.65%	12.59%	12.87%	14.95%	16.48%	18.83%	20.44%	23.11%	24.06%	26.90%	26.65%	26.23%	23.82%	21.87%	21.47%	20.74%	19.25%	18.95%

December 31, 2024 calculation

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

Teradyne Inc's return on assets (ROA) has shown a positive trend over the past few years, starting at 18.95% as of March 31, 2020, and reaching its peak at 26.90% as of March 31, 2022. However, after this peak, there has been a gradual decline in ROA, standing at 14.62% as of December 31, 2024.

The company's ROA indicates how efficiently it is utilizing its assets to generate profits. The higher the ROA, the more profitable the company is relative to its total assets. The downward trend observed in Teradyne Inc's ROA in recent periods may raise concerns about the company's asset utilization efficiency and overall profitability. Further analysis is recommended to understand the reasons behind this decline and to assess the company's financial performance comprehensively.