Teradyne Inc (TER)

Financial leverage ratio

		Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	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
Total assets	US$ in thousands	3,708,710	3,769,730	3,631,710	3,410,720	3,486,820	3,370,660	3,394,900	3,383,410	3,501,250	3,319,910	3,493,580	3,609,150	3,807,670	3,762,180	4,000,920	3,719,720	3,652,350	3,436,510	3,252,060	2,820,390
Total stockholders’ equity	US$ in thousands	3,708,710	2,902,540	2,730,810	2,557,830	2,525,900	2,441,300	2,434,880	2,449,460	2,451,290	2,254,120	2,298,600	2,474,530	2,568,690	2,537,490	2,493,260	2,324,550	2,207,020	1,993,540	1,744,550	1,550,670
Financial leverage ratio		1.00	1.30	1.33	1.33	1.38	1.38	1.39	1.38	1.43	1.47	1.52	1.46	1.48	1.48	1.60	1.60	1.65	1.72	1.86	1.82

December 31, 2024 calculation

Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $3,708,710K ÷ $3,708,710K
= 1.00

The financial leverage ratio of Teradyne Inc has shown a gradual decrease over the past few years, declining from 1.82 as of March 31, 2020, to 1.00 as of December 31, 2024. This indicates that the company has been reducing its reliance on debt as a source of financing relative to its equity. The decreasing trend in the financial leverage ratio suggests improved financial stability and reduced financial risk for the company. This could be a positive signal for investors and stakeholders, as a lower leverage ratio typically signifies a lower risk of insolvency and financial distress. It also indicates that the company may have stronger financial flexibility and capacity to weather economic downturns or unforeseen challenges. However, it is essential for investors to consider other financial metrics and factors in conjunction with the financial leverage ratio to gain a comprehensive understanding of Teradyne Inc's financial health and performance.