Teradyne Inc (TER)

Return on equity (ROE)

		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 stockholders’ equity	US$ in thousands	3,708,710	2,525,900	2,451,290	2,568,690	2,207,020
ROE		14.62%	17.77%	29.19%	39.50%	35.53%

December 31, 2024 calculation

ROE = Net income ÷ Total stockholders’ equity
= $542,372K ÷ $3,708,710K
= 14.62%

Teradyne Inc's return on equity (ROE) has displayed a fluctuating trend over the past five years. Starting at 35.53% on December 31, 2020, the ROE increased to 39.50% by December 31, 2021, indicating improved efficiency in generating profits from shareholders' equity. However, there was a notable decline in ROE to 29.19% by December 31, 2022, potentially signaling challenges in maintaining profitability levels relative to the shareholders' investment.

Further, the trend continued downwards with an ROE of 17.77% by December 31, 2023, suggesting a weakening in the company's ability to generate returns on equity. By the end of December 31, 2024, Teradyne Inc's ROE stood at 14.62%, highlighting a continuing trend of lower profitability in relation to shareholders' equity.

Overall, Teradyne Inc's ROE performance indicates a mixed trajectory over the analyzed period, with a general decline in the efficiency of utilizing equity to generate profits. Stakeholders may need to closely monitor the company's strategies and financial performance to address the declining ROE trend and enhance shareholder value.