Teradyne Inc (TER)

Debt-to-capital ratio

		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	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Long-term debt	US$ in thousands	—	—	—	—	0	—	—	—	89,244	—	—	—	376,768	406,178	402,305	398,466	394,687	390,942	387,243	383,590
Total stockholders’ equity	US$ in thousands	2,525,900	2,441,300	2,434,880	2,449,460	2,451,290	2,254,120	2,298,600	2,474,530	2,562,440	2,537,490	2,493,260	2,324,550	2,207,020	1,993,540	1,744,550	1,550,670	1,480,160	1,482,640	1,479,410	1,470,230
Debt-to-capital ratio		0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.03	0.00	0.00	0.00	0.15	0.17	0.19	0.20	0.21	0.21	0.21	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 been consistently decreasing over the past eight quarters, indicating a positive trend in the company's capital structure. In Q4 2023, the ratio was 0.00, suggesting that the company had no debt in relation to its total capital. This signifies a strong financial position and lower risk associated with debt obligations.

The gradual decline in the debt-to-capital ratio from 0.04 in Q1 2022 to 0.00 in Q4 2023 reflects Teradyne's efficient management of debt and capital allocation. A lower debt-to-capital ratio generally implies that the company relies less on debt financing and has a higher proportion of equity in its capital structure.

Overall, the decreasing trend in Teradyne's debt-to-capital ratio indicates improving financial health, reduced financial risk, and potentially better access to credit at favorable terms. It suggests that the company has been successful in maintaining a balanced capital structure and managing its debt levels prudently over the quarters analyzed.