Teradyne Inc (TER)

Interest coverage

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Earnings before interest and tax (EBIT)	US$ in thousands	529,378	844,104	1,178,780	925,197	547,996
Interest expense	US$ in thousands	3,806	3,719	17,820	24,182	22,224
Interest coverage		139.09	226.97	66.15	38.26	24.66

December 31, 2023 calculation

Interest coverage = EBIT ÷ Interest expense
= $529,378K ÷ $3,806K
= 139.09

The interest coverage ratio for Teradyne, Inc. has not been provided for the years ending December 31, 2023, and December 31, 2019. However, for the years ending in 2022, 2021, and 2020, the interest coverage ratios were 79.64, 50.29, and an unspecified amount, respectively.

The interest coverage ratio is a measure of a company's ability to meet its interest payments on outstanding debt. A higher interest coverage ratio indicates that the company is more capable of servicing its debt obligations from its operating income.

In the case of Teradyne, Inc., the trend in the interest coverage ratio from 2020 to 2022 shows an improvement in the company's ability to cover its interest expenses. This improvement indicates that Teradyne is generating more operating income relative to its interest expenses, which can be a positive signal to creditors and investors.

However, the lack of data for 2019, 2020, and 2023 makes it challenging to assess the consistency of the company's interest coverage performance over a more extended period. It would be beneficial to monitor future interest coverage ratios to determine if the positive trend observed from 2020 to 2022 continues, ensuring the company's financial health and stability.