Teradyne Inc (TER)

Return on equity (ROE)

		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 stockholders’ equity	US$ in thousands	2,525,900	2,451,290	2,562,440	2,207,020	1,480,160
ROE		17.77%	29.19%	39.59%	35.53%	31.58%

December 31, 2023 calculation

ROE = Net income ÷ Total stockholders’ equity
= $448,752K ÷ $2,525,900K
= 17.77%

Teradyne, Inc.'s Return on Equity (ROE) has shown a fluctuating trend over the past five years. In 2023, the ROE stood at 17.77%, a decrease from the previous year's 29.19%. However, despite this decline, Teradyne's ROE remains relatively healthy compared to earlier years.

The ROE of 17.77% suggests that for every dollar of shareholders' equity, Teradyne generated a return of approximately 17.77 cents in 2023. While this is a decrease from the prior year, it still indicates that the company is efficiently utilizing its equity to generate profits.

When compared to the ROE of 39.57% in 2021, the current ROE may raise some concerns about the company's ability to generate returns for its shareholders at previous levels. Investors might seek further insight into the reasons behind this decrease to assess the sustainability of Teradyne's profitability.

Overall, Teradyne's ROE performance indicates that the company has historically been effective in utilizing its equity to generate profits, although there has been some variability in recent years. Further analysis of the company's financial statements and market conditions may be necessary to fully understand the factors influencing these fluctuations in ROE.