Teradyne Inc (TER)
Solvency ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-equity ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Financial leverage ratio | 1.00 | 1.38 | 1.43 | 1.48 | 1.65 |
Teradyne Inc's solvency ratios indicate a strong financial position with minimal debt levels. The Debt-to-assets ratio, Debt-to-capital ratio, and Debt-to-equity ratio for the years 2020 to 2024 are all consistently at 0.00, suggesting that the company has no significant debt relative to its assets, capital, or equity during this period.
Moreover, the Financial leverage ratio has shown a decreasing trend from 1.65 in 2020 to 1.00 in 2024. A lower financial leverage ratio indicates less reliance on debt financing to support the company's operations and growth, further highlighting Teradyne Inc's solid solvency position.
Overall, Teradyne Inc's solvency ratios reflect a healthy balance sheet structure and a robust financial standing, with minimal debt obligations relative to its assets and equity, and decreasing financial leverage over the years.
Coverage ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Interest coverage | 0.00 | 20.45 | 226.97 | 29.64 | 33.78 |
Based on the data provided, the interest coverage ratio for Teradyne Inc has shown significant fluctuations over the years. As of December 31, 2020, the interest coverage ratio was 33.78, indicating that the company was comfortably able to cover its interest expenses.
In the following year, by December 31, 2021, the ratio decreased to 29.64, suggesting a slight decrease in the firm's ability to cover its interest payments. However, by December 31, 2022, the interest coverage ratio spiked to 226.97, indicating a substantial improvement in the company's ability to meet its interest obligations.
This improvement was short-lived as the ratio dropped significantly to 20.45 by December 31, 2023, raising concerns about the firm's ability to cover its interest expenses. The most recent data point of 0.00 as of December 31, 2024, is unusual and may suggest either a very sharp decline in earnings or a problem with the data.
Overall, the fluctuating nature of Teradyne Inc's interest coverage ratio highlights the importance of monitoring the company's financial performance and stability to ensure it can meet its debt obligations efficiently.