Teradyne Inc (TER)

Return on equity (ROE)

		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 stockholders’ equity	US$ in thousands	3,708,710	2,902,540	2,730,810	2,557,830	2,525,900	2,441,300	2,434,880	2,449,460	2,451,290	2,254,120	2,298,600	2,474,530	2,568,690	2,537,490	2,493,260	2,324,550	2,207,020	1,993,540	1,744,550	1,550,670
ROE		14.62%	17.68%	18.15%	16.79%	17.77%	20.64%	22.97%	26.01%	29.19%	34.04%	36.56%	39.24%	39.50%	38.89%	38.22%	34.99%	35.53%	35.76%	35.89%	34.47%

December 31, 2024 calculation

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

Teradyne Inc's return on equity (ROE) has shown fluctuations over the period from March 31, 2020, to December 31, 2024.

The ROE started at a healthy level of 34.47% in March 2020 and gradually increased to a peak of 39.50% by December 2021. This upward trend signifies the company's ability to generate a strong return for its shareholders relative to the equity invested.

However, the ROE began to decline from March 2022 onwards, dropping to 14.62% by December 2024. This decreasing trend indicates potential concerns regarding the company's efficiency in utilizing shareholder equity to generate profits.

Overall, although Teradyne Inc experienced a period of strong ROE performance, the significant decline towards the end of the period raises questions about the company's profitability and operational effectiveness. Further analysis is required to understand the underlying reasons for this decline and to assess the company's future prospects.