Analysis of Property, Plant and Equipment
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- Statement of Comprehensive Income
- Balance Sheet: Assets
- Analysis of Long-term (Investment) Activity Ratios
- DuPont Analysis: Disaggregation of ROE, ROA, and Net Profit Margin
- Analysis of Geographic Areas
- Selected Financial Data since 2005
- Operating Profit Margin since 2005
- Return on Assets (ROA) since 2005
- Current Ratio since 2005
- Price to Operating Profit (P/OP) since 2005
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Property, Plant and Equipment Disclosure
Teradyne Inc., balance sheet: property, plant and equipment
US$ in thousands
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).
- Land
- The value of land has exhibited a steady increase from 16,561 thousand US dollars in 2019 to 19,487 thousand US dollars in 2023, reflecting gradual investment or appreciation over the period.
- Buildings
- Building assets increased moderately from 107,282 thousand US dollars in 2019 to a peak of 128,991 thousand US dollars in 2022, followed by a slight decline to 127,705 thousand US dollars in 2023. This indicates some expansion in earlier years with stabilization or minor divestiture more recently.
- Machinery, Equipment and Software
- This category showed substantial growth, rising from 834,970 thousand US dollars in 2019 to a peak of 1,059,880 thousand US dollars in 2022, before a slight decrease to 1,047,235 thousand US dollars in 2023. The trend suggests significant capital expenditure focused on machinery and technological assets, with a slight reduction possibly due to disposals or asset revaluation in the latest year.
- Furniture and Fixtures
- Values declined slightly over the period, from 29,157 thousand US dollars in 2019 to 28,093 thousand US dollars in 2023, showing relatively stable but slightly reduced investment in this category.
- Leasehold Improvements
- Leasehold improvements experienced consistent growth from 59,378 thousand US dollars in 2019 to 66,777 thousand US dollars in 2023, indicating ongoing enhancements or renovations to leased properties.
- Construction in Progress
- Construction in progress had notable fluctuations, beginning at 2,537 thousand US dollars in 2019 and increasing sharply to 54,799 thousand US dollars in 2023, with a peak movement in 2023. This suggests intensified development activity or ongoing projects nearing completion.
- Property, Plant and Equipment, Gross
- Overall gross property, plant, and equipment increased steadily from 1,049,885 thousand US dollars in 2019 to 1,344,096 thousand US dollars in 2023, reflecting ongoing asset acquisitions and capital investments across various categories.
- Accumulated Depreciation
- Accumulated depreciation increased in absolute value, reaching its highest negative balance in 2022 at -905,699 thousand US dollars, then slightly receded to -898,604 thousand US dollars in 2023. This pattern indicates increasing asset depreciation consistent with aging assets, with a small reversal possibly due to asset disposals or adjustments.
- Property, Plant and Equipment, Net
- The net carrying value rose from 320,216 thousand US dollars in 2019 to 445,492 thousand US dollars in 2023. This increase, despite growing accumulated depreciation, reflects significant asset additions and growth in capital assets over the period, pointing to an expanding asset base supporting the company’s operations.
Asset Age Ratios (Summary)
Teradyne Inc., asset age ratios
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).
- Average Age Ratio
- The average age ratio of the assets shows moderate fluctuations over the five-year period, starting at 70.61% in 2019 and ending at 67.84% in 2023. This indicates a slight overall decrease in the proportion of the asset life that has been used, suggesting relatively stable asset aging with some minor renewal or replacement activity during this period.
- Estimated Total Useful Life
- The estimated total useful life of the assets remained steady at 15 years from 2019 to 2020 but decreased to 13 years in 2021. It then increased to 14 years in both 2022 and 2023. This pattern suggests a revision in asset longevity expectations around 2021, possibly due to changes in asset composition or updated assessments of asset durability.
- Estimated Age, Time Elapsed Since Purchase
- The estimated age of the assets shows minor variability, remaining at 10 years for 2019, 2020, 2022, and 2023, with a slight dip to 9 years in 2021. This consistency implies that the asset base has been maintained with an approximate average age of around 10 years, indicating a steady replacement or acquisition cycle.
- Estimated Remaining Life
- Estimated remaining life exhibits modest fluctuations, moving from 4 years in 2019 to 5 years in 2020, then back to 4 years in 2021 and 2022, and up again to 5 years in 2023. This variation aligns with the adjustments in total useful life and suggests a dynamic approach to asset management, reflecting recalibrations in expected future usability.
Average Age
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 Average age = 100 × Accumulated depreciation ÷ (Property, plant and equipment, gross – Land)
= 100 × ÷ ( – ) =
- Property, Plant, and Equipment, Gross
- The gross value of property, plant, and equipment has shown a consistent upward trend over the analyzed period. It increased from approximately $1.05 billion at the end of 2019 to around $1.34 billion by the end of 2023, reflecting steady investment or acquisition of assets.
- Accumulated Depreciation
- Accumulated depreciation also increased over time, rising from approximately $729.7 million in 2019 to a peak of about $905.7 million in 2022, before slightly decreasing to $898.6 million in 2023. This indicates ongoing asset usage and depreciation charges, with a minor reduction in the latest year that may suggest asset disposals or changes in depreciation policy.
- Land
- The value of land assets increased gradually from $16.6 million in 2019 to $19.5 million in 2023. This steady rise points to possible land acquisitions or revaluations contributing to the overall asset base.
- Average Age Ratio
- The average age ratio, expressed as a percentage, exhibited some fluctuations but remained relatively stable, ranging from about 67.6% to 70.6% over the period. A slight downward trend is observable from 70.6% in 2019 to 67.8% in 2023, suggesting a modest renewal or addition of newer assets relative to the total asset base.
- Summary Insights
- The data presents a picture of ongoing asset growth and sustained depreciation, reflecting continuous use and replenishment of property, plant, and equipment. The increase in gross assets coupled with the relatively stable average age ratio suggests the company is maintaining its asset base with additions that somewhat offset aging. The slight decline in accumulated depreciation in the final year could indicate strategic asset management maneuvers such as disposals or adjustments. Overall, the trends denote steady capitalization on fixed assets with careful management of their lifecycle.
Estimated Total Useful Life
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 Estimated total useful life = (Property, plant and equipment, gross – Land) ÷ Depreciation of property, plant and equipment
= ( – ) ÷ =
- Gross Property, Plant, and Equipment
- The gross value of property, plant, and equipment exhibited a consistent upward trend from 2019 to 2023. Starting at approximately $1.05 billion in 2019, it increased steadily to about $1.34 billion by the end of 2023. This growth suggests ongoing investment in fixed assets over the analyzed period.
- Land
- The value of land assets showed moderate increases during the period. It rose from around $16.6 million in 2019 to nearly $19.5 million in 2023, with a small plateau occurring between 2020 and 2021. This indicates incremental acquisitions or revaluation gains in land holdings.
- Depreciation Expense
- Depreciation of property, plant, and equipment increased from approximately $70.8 million in 2019 to $92.1 million in 2023. The expense rose notably from 2019 to 2021, peaked in 2021, then remained relatively stable through 2023. This pattern may reflect asset additions and the aging of the existing asset base leading to higher accumulated depreciation charges.
- Estimated Useful Life
- The estimated total useful life of the property, plant, and equipment remained fairly stable, ranging from 13 to 15 years over the period. The slight reduction from 15 years in 2019-2020 to 13-14 years in subsequent years could suggest updates to asset lifespan estimates in response to newer asset acquisitions or changes in asset utilization.
Estimated Age, Time Elapsed since Purchase
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 Time elapsed since purchase = Accumulated depreciation ÷ Depreciation of property, plant and equipment
= ÷ =
- Accumulated depreciation
- The accumulated depreciation of property, plant, and equipment shows a consistent upward trend from 729,669 thousand USD at the end of 2019 to 905,699 thousand USD at the end of 2022, indicating continuous wear and usage of the fixed assets over this period. However, there is a slight decline in 2023 to 898,604 thousand USD, which may suggest asset disposals, revaluations, or changes in depreciation policies.
- Depreciation expense
- The annual depreciation expense increased steadily from 70,834 thousand USD in 2019 to 91,073 thousand USD in 2021, reflecting either additions to the asset base or changes in depreciation methods or estimates. The depreciation expense remained relatively stable during 2022 and 2023, at 90,763 thousand USD and 92,118 thousand USD respectively, indicating a plateauing of asset additions or a consistent depreciation pattern in these years.
- Time elapsed since purchase
- The average time elapsed since purchase remained largely steady around 10 years across the periods, with a slight decrease to 9 years in 2021 followed by a return to 10 years thereafter. This stability suggests a relatively consistent asset replacement or acquisition cycle without significant fluctuations in the age of property, plant, and equipment.
Estimated Remaining Life
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 Estimated remaining life = (Property, plant and equipment, net – Land) ÷ Depreciation of property, plant and equipment
= ( – ) ÷ =
- Property, Plant, and Equipment, Net
- The net value of property, plant, and equipment demonstrated a generally upward trend over the analyzed period from 2019 to 2023. Beginning at $320,216 thousand at the end of 2019, the net value increased substantially in 2020 to $394,800 thousand. It slightly declined in 2021 to $387,240 thousand but then resumed growth in the following years, reaching $445,492 thousand by the end of 2023. This overall increase suggests ongoing investment in fixed assets, despite some fluctuation.
- Land
- The value attributed to land showed consistent, moderate growth through the years. Starting from $16,561 thousand in 2019, it rose incrementally each year to reach $19,487 thousand by the end of 2023. This steady increase points to possible land acquisition or revaluation gains over the given period.
- Depreciation of Property, Plant, and Equipment
- Depreciation expenses exhibited an increasing pattern for most of the period. From $70,834 thousand in 2019, depreciation rose each year, reaching $91,073 thousand by the end of 2021. In 2022, there was a slight decrease to $90,763 thousand, followed by a minor increase to $92,118 thousand by the end of 2023. The overall growth in depreciation aligns with the expanding asset base, reflecting higher consumption of asset value.
- Estimated Remaining Life of Assets
- The estimated remaining life of property, plant, and equipment fluctuated between 4 and 5 years during the period. It increased from 4 years in 2019 to 5 years in 2020, then reverted to 4 years for the two subsequent years before rising again to 5 years in 2023. These variations might indicate adjustments based on asset age, acquisition of new assets with different useful lives, or changes in company policy regarding depreciation schedules.