Goodwill and Intangible Asset Disclosure
Adjustments to Financial Statements: Removal of Goodwill
Adjusted Financial Ratios: Removal of Goodwill (Summary)
Adjusted Total Asset Turnover
Adjusted Financial Leverage
Adjusted Return on Equity (ROE)
Adjusted Return on Assets (ROA)

Teradyne Inc., balance sheet: goodwill and intangible assets

US$ in thousands

	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Goodwill	415,652)	403,195)	426,024)	453,859)	416,431)
Developed technology	262,363)	265,032)	268,454)	270,937)	356,078)
Customer relationships	52,341)	57,911)	57,948)	66,544)	75,214)
Tradenames and trademarks	57,762)	57,859)	58,804)	70,805)	68,936)
Backlog	—)	—)	—)	—)	260)
Intangible assets, gross carrying amount	372,466)	380,802)	385,206)	408,286)	500,488)
Accumulated amortization	(337,062)	(327,324)	(309,571)	(307,347)	(375,008)
Intangible assets, net carrying amount	35,404)	53,478)	75,635)	100,939)	125,480)
Goodwill and intangible assets	451,056)	456,673)	501,659)	554,798)	541,911)

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).

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Item	Description	The company
Goodwill	Amount after accumulated impairment loss of an asset representing future economic benefits arising from other assets acquired in a business combination that are not individually identified and separately recognized.	Teradyne Inc. goodwill decreased from 2021 to 2022 but then increased from 2022 to 2023 not reaching 2021 level.
Intangible assets, net carrying amount	Sum of the carrying amounts of all intangible assets, excluding goodwill, as of the balance sheet date, net of accumulated amortization and impairment charges.	Teradyne Inc. intangible assets, net carrying amount decreased from 2021 to 2022 and from 2022 to 2023.
Goodwill and intangible assets	Sum of the carrying amounts of all intangible assets, including goodwill, as of the balance sheet date, net of accumulated amortization and impairment charges.	Teradyne Inc. goodwill and intangible assets decreased from 2021 to 2022 and from 2022 to 2023.

Teradyne Inc., adjustments to financial statements

US$ in thousands

	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Adjustment to Total Assets
Total assets (as reported)	3,486,824)	3,501,252)	3,809,425)	3,652,346)	2,787,014)
Less: Goodwill	415,652)	403,195)	426,024)	453,859)	416,431)
Total assets (adjusted)	3,071,172)	3,098,057)	3,383,401)	3,198,487)	2,370,583)
Adjustment to Shareholders’ Equity
Shareholders’ equity (as reported)	2,525,897)	2,451,294)	2,562,444)	2,207,018)	1,480,158)
Less: Goodwill	415,652)	403,195)	426,024)	453,859)	416,431)
Shareholders’ equity (adjusted)	2,110,245)	2,048,099)	2,136,420)	1,753,159)	1,063,727)

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).

Teradyne Inc., Financial Data: Reported vs. Adjusted

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Teradyne Inc., adjusted financial ratios

	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Total Asset Turnover
Reported total asset turnover	0.77	0.90	0.97	0.85	0.82
Adjusted total asset turnover	0.87	1.02	1.09	0.98	0.97
Financial Leverage
Reported financial leverage	1.38	1.43	1.49	1.65	1.88
Adjusted financial leverage	1.46	1.51	1.58	1.82	2.23
Return on Equity (ROE)
Reported ROE	17.77%	29.19%	39.59%	35.53%	31.58%
Adjusted ROE	21.27%	34.93%	47.49%	44.73%	43.95%
Return on Assets (ROA)
Reported ROA	12.87%	20.44%	26.63%	21.47%	16.77%
Adjusted ROA	14.61%	23.10%	29.99%	24.52%	19.72%

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).

Financial ratio	Description	The company
Adjusted total asset turnover	An activity ratio calculated as total revenue divided by adjusted total assets.	Teradyne Inc. adjusted total asset turnover ratio deteriorated from 2021 to 2022 and from 2022 to 2023.
Adjusted financial leverage	A measure of financial leverage calculated as adjusted total assets divided by adjusted total equity. Financial leverage is the extent to which a company can effect, through the use of debt, a proportional change in the return on common equity that is greater than a given proportional change in operating income.	Teradyne Inc. adjusted financial leverage ratio decreased from 2021 to 2022 and from 2022 to 2023.
Adjusted ROE	A profitability ratio calculated as net income divided by adjusted shareholders’ equity.	Teradyne Inc. adjusted ROE deteriorated from 2021 to 2022 and from 2022 to 2023.
Adjusted ROA	A profitability ratio calculated as net income divided by adjusted total assets.	Teradyne Inc. adjusted ROA deteriorated from 2021 to 2022 and from 2022 to 2023.

Teradyne Inc., Financial Ratios: Reported vs. Adjusted

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	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
As Reported
Selected Financial Data (US$ in thousands)
Revenues	2,676,298)	3,155,045)	3,702,881)	3,121,469)	2,294,965)
Total assets	3,486,824)	3,501,252)	3,809,425)	3,652,346)	2,787,014)
Activity Ratio
Total asset turnover¹	0.77	0.90	0.97	0.85	0.82
Adjusted for Goodwill
Selected Financial Data (US$ in thousands)
Revenues	2,676,298)	3,155,045)	3,702,881)	3,121,469)	2,294,965)
Adjusted total assets	3,071,172)	3,098,057)	3,383,401)	3,198,487)	2,370,583)
Activity Ratio
Adjusted total asset turnover²	0.87	1.02	1.09	0.98	0.97

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).

2023 Calculations

¹ Total asset turnover = Revenues ÷ Total assets
= 2,676,298 ÷ 3,486,824 = 0.77

² Adjusted total asset turnover = Revenues ÷ Adjusted total assets
= 2,676,298 ÷ 3,071,172 = 0.87

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Activity ratio	Description	The company
Adjusted total asset turnover	An activity ratio calculated as total revenue divided by adjusted total assets.	Teradyne Inc. adjusted total asset turnover ratio deteriorated from 2021 to 2022 and from 2022 to 2023.

	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
As Reported
Selected Financial Data (US$ in thousands)
Total assets	3,486,824)	3,501,252)	3,809,425)	3,652,346)	2,787,014)
Shareholders’ equity	2,525,897)	2,451,294)	2,562,444)	2,207,018)	1,480,158)
Solvency Ratio
Financial leverage¹	1.38	1.43	1.49	1.65	1.88
Adjusted for Goodwill
Selected Financial Data (US$ in thousands)
Adjusted total assets	3,071,172)	3,098,057)	3,383,401)	3,198,487)	2,370,583)
Adjusted shareholders’ equity	2,110,245)	2,048,099)	2,136,420)	1,753,159)	1,063,727)
Solvency Ratio
Adjusted financial leverage²	1.46	1.51	1.58	1.82	2.23

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).

2023 Calculations

¹ Financial leverage = Total assets ÷ Shareholders’ equity
= 3,486,824 ÷ 2,525,897 = 1.38

² Adjusted financial leverage = Adjusted total assets ÷ Adjusted shareholders’ equity
= 3,071,172 ÷ 2,110,245 = 1.46

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Solvency ratio	Description	The company
Adjusted financial leverage	A measure of financial leverage calculated as adjusted total assets divided by adjusted total equity. Financial leverage is the extent to which a company can effect, through the use of debt, a proportional change in the return on common equity that is greater than a given proportional change in operating income.	Teradyne Inc. adjusted financial leverage ratio decreased from 2021 to 2022 and from 2022 to 2023.

	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
As Reported
Selected Financial Data (US$ in thousands)
Net income	448,752)	715,501)	1,014,589)	784,147)	467,468)
Shareholders’ equity	2,525,897)	2,451,294)	2,562,444)	2,207,018)	1,480,158)
Profitability Ratio
ROE¹	17.77%	29.19%	39.59%	35.53%	31.58%
Adjusted for Goodwill
Selected Financial Data (US$ in thousands)
Net income	448,752)	715,501)	1,014,589)	784,147)	467,468)
Adjusted shareholders’ equity	2,110,245)	2,048,099)	2,136,420)	1,753,159)	1,063,727)
Profitability Ratio
Adjusted ROE²	21.27%	34.93%	47.49%	44.73%	43.95%

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).

2023 Calculations

¹ ROE = 100 × Net income ÷ Shareholders’ equity
= 100 × 448,752 ÷ 2,525,897 = 17.77%

² Adjusted ROE = 100 × Net income ÷ Adjusted shareholders’ equity
= 100 × 448,752 ÷ 2,110,245 = 21.27%

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Profitability ratio	Description	The company
Adjusted ROE	A profitability ratio calculated as net income divided by adjusted shareholders’ equity.	Teradyne Inc. adjusted ROE deteriorated from 2021 to 2022 and from 2022 to 2023.

	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
As Reported
Selected Financial Data (US$ in thousands)
Net income	448,752)	715,501)	1,014,589)	784,147)	467,468)
Total assets	3,486,824)	3,501,252)	3,809,425)	3,652,346)	2,787,014)
Profitability Ratio
ROA¹	12.87%	20.44%	26.63%	21.47%	16.77%
Adjusted for Goodwill
Selected Financial Data (US$ in thousands)
Net income	448,752)	715,501)	1,014,589)	784,147)	467,468)
Adjusted total assets	3,071,172)	3,098,057)	3,383,401)	3,198,487)	2,370,583)
Profitability Ratio
Adjusted ROA²	14.61%	23.10%	29.99%	24.52%	19.72%

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).

2023 Calculations

¹ ROA = 100 × Net income ÷ Total assets
= 100 × 448,752 ÷ 3,486,824 = 12.87%

² Adjusted ROA = 100 × Net income ÷ Adjusted total assets
= 100 × 448,752 ÷ 3,071,172 = 14.61%

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Profitability ratio	Description	The company
Adjusted ROA	A profitability ratio calculated as net income divided by adjusted total assets.	Teradyne Inc. adjusted ROA deteriorated from 2021 to 2022 and from 2022 to 2023.

Teradyne Inc. (NASDAQ:TER)

Analysis of Goodwill and Intangible Assets

Goodwill and Intangible Asset Disclosure

Adjustments to Financial Statements: Removal of Goodwill

Teradyne Inc., Financial Data: Reported vs. Adjusted

Adjusted Financial Ratios: Removal of Goodwill (Summary)

Teradyne Inc., Financial Ratios: Reported vs. Adjusted

Adjusted Total Asset Turnover

Adjusted Financial Leverage

Adjusted Return on Equity (ROE)

Adjusted Return on Assets (ROA)