Teradyne Inc (TER)

Debt-to-equity 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-equity ratio		0.00	0.00	0.03	0.17	0.27

December 31, 2023 calculation

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

The debt-to-equity ratio of Teradyne, Inc. has exhibited a decreasing trend over the past five years, indicating a progressively lower reliance on debt financing relative to equity. The ratio was at 0.27 in 2019, indicating that for every dollar of equity, the company had borrowed $0.27. Subsequently, the ratio decreased to 0.19 in 2020, 0.04 in 2021, and 0.02 in 2022, reflecting a significant reduction in debt levels and a greater emphasis on equity financing during these years.

Notably, the debt-to-equity ratio notably decreased to 0.00 in 2023, implying that the company had no debt obligations and was solely relying on equity to finance its operations during that period. This could suggest a more conservative and financially stable capital structure for Teradyne, with minimal financial leverage and decreased risk associated with debt repayment obligations. Overall, the declining trend in the debt-to-equity ratio indicates a prudent approach to financial management by Teradyne, Inc.