Teradyne Inc (TER)

Debt-to-assets ratio

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Long-term debt	US$ in thousands	—	0	89,244	376,768	394,687
Total assets	US$ in thousands	3,486,820	3,501,250	3,809,420	3,652,350	2,787,010
Debt-to-assets ratio		0.00	0.00	0.02	0.10	0.14

December 31, 2023 calculation

Debt-to-assets ratio = Long-term debt ÷ Total assets
= $—K ÷ $3,486,820K
= 0.00

The debt-to-assets ratio of Teradyne, Inc. has shown a declining trend over the past five years, indicating a stronger financial position in terms of debt management and asset utilization. As of December 31, 2023, the company reported a debt-to-assets ratio of 0.00, implying that the company had no debt relative to its total assets.

Comparing this to the ratios from previous years, we observe a significant decrease from 0.01 in 2022 to 0.00 in 2023, indicating a reduction in the proportion of debt used to finance the company's assets. This decline suggests that Teradyne has been effectively managing its debt levels or possibly paying off its outstanding debts.

Furthermore, the decreasing trend in the debt-to-assets ratio from 0.14 in 2019 to 0.00 in 2023 reflects an improved financial position over the years. A lower debt-to-assets ratio signifies that a smaller portion of the company's assets is funded by debt, which can lead to lower financial risk and potentially lower interest expenses.

Overall, the consistent decline in Teradyne's debt-to-assets ratio indicates a positive shift towards a more conservative capital structure and improved financial stability.