Teradyne Inc (TER)

Debt-to-capital 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 stockholders’ equity	US$ in thousands	2,525,900	2,451,290	2,562,440	2,207,020	1,480,160
Debt-to-capital ratio		0.00	0.00	0.03	0.15	0.21

December 31, 2023 calculation

Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $—K ÷ ($—K + $2,525,900K)
= 0.00

The debt-to-capital ratio of Teradyne, Inc. has exhibited a declining trend over the past five years, indicating a decreasing reliance on debt to finance the company's operations and investments. The ratio dropped from 0.21 in 2019 to 0.00 in 2023. This significant reduction suggests that Teradyne has been successful in managing its debt levels and improving its capital structure efficiency. Lower debt-to-capital ratios generally signify a healthier financial position, as the company has less financial risk associated with debt obligations. Teradyne's decreasing trend in the debt-to-capital ratio may imply a stronger ability to fund operations and growth using internal resources or equity financing, which can enhance long-term stability and sustainability. It also reflects positively on the company's ability to service its debt obligations while maintaining an optimal capital structure for future growth and profitability.