Teradyne Inc (TER)
Solvency ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-equity ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| 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 |
From the data provided, we can see that Teradyne Inc has consistently maintained a debt-to-assets ratio of 0.00 over the past few years. This indicates that the company has not taken on any long-term debt relative to its total assets.
Similarly, the debt-to-capital ratio and debt-to-equity ratio have also remained at 0.00 throughout the same period. This suggests that the company's capital structure is not reliant on significant levels of debt, as both ratios indicate minimal debt in relation to capital or equity.
The financial leverage ratio, on the other hand, has been steadily decreasing from 1.82 in March 2020 to 1.00 in December 2024. This trend implies that Teradyne Inc has been reducing its reliance on debt over time in financing its operations and investments.
Overall, the solvency ratios for Teradyne Inc indicate a strong financial position with minimal debt levels and decreasing financial leverage, which can be seen as a positive indicator of the company's ability to meet its long-term financial obligations.
Coverage ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Interest coverage | 62.99 | 156.10 | 146.33 | 145.04 | 139.05 | 145.89 | 174.22 | 63.15 | 51.08 | 54.45 | 24.43 | 31.50 | 29.81 | 22.77 | 34.17 | 28.64 | 27.29 | 28.67 | 28.56 | 26.91 |
Teradyne Inc's interest coverage ratio has shown fluctuations over the past few years, indicating varying levels of financial stability in meeting its interest payment obligations.
The interest coverage ratio, which measures the company's ability to cover its interest expenses with its earnings before interest and taxes (EBIT), was consistently strong in the range of 26 to 34 from March 2020 to June 2021. This indicates that Teradyne had more than enough operating income to cover its interest expenses during this period, reflecting a healthy financial position.
However, from September 2021 to December 2024, the interest coverage ratio experienced significant volatility, reaching a low of 22.77 in September 2021. This suggests a potential strain on the company's ability to pay interest expenses from its operating income during that period.
Subsequently, there was a sharp increase in the interest coverage ratio to 174.22 in June 2023, indicating a significant improvement in the company's ability to cover its interest obligations. However, the ratio decreased to 62.99 by December 2024, though still showing an improvement from the lows of 2021.
Overall, Teradyne's interest coverage ratio has shown fluctuations, with periods of strong performance followed by periods of volatility. Investors and stakeholders should closely monitor the company's ability to generate sufficient earnings to cover its interest expenses in the future.