Teradyne Inc (TER)
Financial leverage ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 3,708,710 | 3,486,820 | 3,501,250 | 3,807,670 | 3,652,350 |
| Total stockholders’ equity | US$ in thousands | 3,708,710 | 2,525,900 | 2,451,290 | 2,568,690 | 2,207,020 |
| Financial leverage ratio | 1.00 | 1.38 | 1.43 | 1.48 | 1.65 |
December 31, 2024 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $3,708,710K ÷ $3,708,710K
= 1.00
The financial leverage ratio for Teradyne Inc has shown a decreasing trend over the past five years. Starting at 1.65 in December 31, 2020, it decreased to 1.00 by December 31, 2024. This downward trend indicates that the company has been progressively relying less on debt to finance its operations and investments. A lower financial leverage ratio suggests a lower risk of financial distress as the company has less debt relative to its equity. However, it is important for the company to maintain a balance in its capital structure to ensure optimal financial performance and growth opportunities.
Peer comparison
Dec 31, 2024