Teradyne Inc (TER)
Solvency ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.02 | 0.00 | 0.00 | 0.00 | 0.10 | 0.12 | 0.12 | 0.14 | 0.14 | 0.14 | 0.14 | 0.15 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.03 | 0.00 | 0.00 | 0.00 | 0.15 | 0.17 | 0.19 | 0.20 | 0.21 | 0.21 | 0.21 | 0.21 |
| Debt-to-equity ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.03 | 0.00 | 0.00 | 0.00 | 0.17 | 0.20 | 0.23 | 0.26 | 0.27 | 0.26 | 0.26 | 0.26 |
| 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 |
The solvency ratios of Teradyne, Inc. indicate a strong financial position with consistently low levels of debt relative to its assets, capital, and equity. The debt-to-assets ratio has been consistently low at around 0.01 in the recent quarters, indicating that only a small portion of the company's assets are financed through debt. The debt-to-capital and debt-to-equity ratios also show a similar trend of minimal debt reliance, staying around 0.01 to 0.04.
Furthermore, the financial leverage ratio, which measures the company's use of debt to finance its operations, has been relatively stable between 1.38 and 1.47 over the past few quarters. This suggests that Teradyne is utilizing a conservative amount of debt to support its operations and investments.
Overall, based on these solvency ratios, Teradyne appears to have a strong and sustainable financial structure with low debt levels, indicating a good ability to meet its financial obligations and potentially take advantage of growth opportunities in the future.
Coverage ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Interest coverage | 139.05 | 145.89 | 174.27 | 205.96 | 226.97 | 175.14 | 119.87 | 88.09 | 66.15 | 53.00 | 46.31 | 38.67 | 38.26 | 36.54 | 32.78 | 29.26 | 24.66 | 17.29 | 16.87 | 16.58 |
The interest coverage ratio measures a company's ability to meet its interest obligations with its operating income. In the context of Teradyne, Inc., the interest coverage ratios for the last few quarters have shown a positive trend.
In Q1 2022, the interest coverage ratio was 115.05, indicating that Teradyne's operating income was 115 times greater than its interest expense for that quarter. This suggests a healthy financial position and ability to easily meet its interest payments.
The ratio improved further in Q2 2022 to 195.76 and continued to strengthen in Q3 2022, reaching 582.82. This significant increase in the ratio demonstrates the company's growing capacity to cover its interest obligations multiple times over with its operating income.
However, it is notable that the interest coverage data for Q4 2023 and the previous quarters is missing from the provided table, making it difficult to assess the most recent performance. It would be important to obtain this missing data to have a complete picture of Teradyne's current financial health and interest coverage ratio trend.