Teradyne Inc (TER)

Financial leverage 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
Total assets	US$ in thousands	3,486,820	3,370,660	3,394,900	3,383,410	3,501,250	3,319,910	3,488,430	3,609,150	3,809,420	3,762,180	4,000,920	3,719,720	3,652,350	3,436,510	3,249,190	2,820,390	2,787,010	2,698,790	2,671,510	2,616,640
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
Financial leverage ratio		1.38	1.38	1.39	1.38	1.43	1.47	1.52	1.46	1.49	1.48	1.60	1.60	1.65	1.72	1.86	1.82	1.88	1.82	1.81	1.78

December 31, 2023 calculation

Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $3,486,820K ÷ $2,525,900K
= 1.38

The financial leverage ratio of Teradyne, Inc. has been relatively stable over the past eight quarters, ranging from 1.38 to 1.52. The ratio is a measure of the company's use of debt to finance its operations and is calculated as total assets divided by total equity. A ratio above 1 indicates that the company has more debt than equity, which suggests higher financial risk.

In the case of Teradyne, Inc., the financial leverage ratio has been fluctuating within a narrow range, hovering around 1.40. This indicates that the company has been maintaining a conservative level of debt in relation to its equity, which could be seen as a positive factor in terms of financial stability and risk management.

However, a slight increase in the financial leverage ratio from 1.43 in Q4 2022 to 1.52 in Q2 2022 may raise some concerns about the company's increasing reliance on debt financing during that period. It would be advisable for stakeholders to closely monitor any further changes in the financial leverage ratio to assess the company's overall financial health and risk profile.