Teradyne Inc. (NASDAQ:TER)

Total Asset Turnover

The reported total asset turnover increased from 0.82 in 2019 to a peak of 0.97 in 2021, followed by a decline to 0.77 in 2023. The adjusted total asset turnover shows a similar pattern, reaching 1.0 in 2021 and then decreasing to 0.79 in 2023. This indicates a strengthening asset utilization efficiency up to 2021, with a subsequent downturn in the following years.

Current Ratio

The reported current ratio rose from 3.08 in 2019 to 3.45 in 2020, then decreased slightly to 3.03 in 2022 before recovering to 3.28 in 2023. The adjusted current ratio follows a comparable trajectory, peaking at 4.27 in 2020 and settling around 3.86 by 2023. These figures suggest a consistently strong liquidity position with some fluctuations but overall stability.

Debt to Equity

The reported debt to equity ratio significantly declined from 0.27 in 2019 to 0.02 in 2022, with adjusted figures mirroring this trend, reaching as low as 0.03 in 2023. This demonstrates a substantial reduction in leverage, indicating improved financial risk management and a more conservative capital structure over the period.

Debt to Capital

Similarly, the debt to capital ratio fell from 0.21 in 2019 to 0.02 in 2022 (reported), with the adjusted measure slightly higher but decreasing to 0.03 in 2023. This confirms the trend toward lowered dependency on debt financing in the company’s capital structure.

Financial Leverage

Financial leverage declined steadily from 1.88 in 2019 to 1.38 in 2023 on a reported basis and from 1.68 to 1.3 on an adjusted basis. This reduction further supports the evidence of de-leveraging and indicates a lower reliance on debt relative to equity and assets during the period analyzed.

Net Profit Margin

The net profit margin reached its highest level in 2021 at 27.4% (reported) and 26.57% (adjusted), then decreased each subsequent year down to 16.77% and 13.66% respectively in 2023. This decline after 2021 points to weakening profitability, possibly due to increased costs, competitive pressures, or other operational challenges.

Return on Equity (ROE)

The reported ROE rose from 31.58% in 2019 to a peak of 39.59% in 2021 before dropping to 17.77% in 2023. The adjusted ROE shows a similar pattern, albeit with somewhat lower peak and trough values. This indicates that shareholder returns improved markedly until 2021 but have since declined considerably.

Return on Assets (ROA)

ROA also peaked in 2021 at 26.63% (reported) and 26.59% (adjusted), then declined steadily to 12.87% and 10.8% respectively in 2023. The decreasing trend in ROA after 2021 suggests the company's asset utilization for generating earnings has weakened substantially in recent years.

Revenues Trend

Revenues increased significantly from 2019 to 2021, rising from approximately 2.29 billion US dollars in 2019 to a peak of about 3.70 billion US dollars in 2021. However, after 2021, revenues declined steadily, falling to around 3.16 billion in 2022 and further to approximately 2.68 billion by the end of 2023.

Total Assets Trend

Total assets showed a consistent increase from 2019 through 2021, moving from roughly 2.79 billion US dollars to about 3.81 billion US dollars. Following this peak, total assets decreased moderately in both 2022 and 2023, settling near 3.49 billion US dollars at the end of 2023.

Reported Total Asset Turnover

The reported total asset turnover ratio gradually improved from 0.82 in 2019 to a high of 0.97 in 2021, indicating more efficient use of assets to generate revenue over that period. In 2022, the ratio declined to 0.90 and fell further to 0.77 by 2023, reflecting a reduction in asset productivity.

Adjusted Revenues and Adjusted Total Assets

Adjusted revenues exhibit a similar pattern to reported revenues with growth from 2019 to 2021, reaching 3.71 billion US dollars in 2021, and subsequent decline to approximately 2.62 billion in 2023. Adjusted total assets also increased through 2021 before dropping in 2022 and 2023, trending slightly lower than reported total assets.

Adjusted Total Asset Turnover

The adjusted total asset turnover ratio rose from 0.86 in 2019 to a peak of 1.00 in 2021, suggesting optimal asset utilization during that period. The ratio then decreased to 0.94 in 2022 and further to 0.79 in 2023, aligning with the patterns observed in revenue and asset changes and indicating a decline in asset efficiency.

Summary of Patterns

Overall, the data reflects a growth phase in revenues and asset base culminating in 2021, followed by a contraction phase through 2022 and 2023. This is accompanied by a peak and subsequent decline in asset turnover ratios, suggesting that asset utilization peaked in 2021 and has weakened since, possibly due to declining sales or changes in asset composition. The adjusted figures corroborate the reported trends, confirming consistency in the underlying financial measures.

The financial data reveals patterns in liquidity over the five-year period ending December 31, 2023. Current assets increased notably from 2019 through 2021, peaking at approximately $2.58 billion, before declining in the subsequent two years to about $2.16 billion. This movement indicates a buildup of liquid resources followed by a moderate reduction.

Current liabilities showed a steady rise initially from 2019 to 2021, going from roughly $539 million to $805 million, then decreased in the last two years to approximately $660 million. The increase and then decrease in liabilities suggest fluctuations in short-term obligations, potentially reflecting changes in operational or financing activities.

The reported current ratio, which measures the ability to cover short-term liabilities with short-term assets, started at 3.08 in 2019, increased to 3.45 in 2020, followed by a decline to 3.03 in 2022, and then a slight recovery to 3.28 in 2023. This implies that although current assets generally exceed current liabilities by a comfortable margin, there were modest variations in liquidity coverage.

Adjusted figures for current assets and liabilities, which may exclude certain items to provide a clearer view of liquidity, display a similar trend. Adjusted current assets rose from about $1.66 billion in 2019 to $2.58 billion in 2021 before declining to $2.16 billion in 2023. Adjusted current liabilities increased from approximately $434 million in 2019 to $659 million in 2021, then decreased to $560 million in 2023.

The adjusted current ratio was consistently higher than the reported ratio, starting at 3.82 in 2019, peaking at 4.27 in 2020, and slightly declining thereafter to stabilize around 3.86 in 2023. This higher ratio implies a stronger liquidity position when adjustments are considered, maintaining a solid buffer for short-term obligations throughout the period.

Overall, the data indicates that liquidity levels improved significantly from 2019 to 2020, remained strong through 2021, and experienced a moderate decline and stabilization from 2022 to 2023. The company maintained sufficient short-term assets relative to liabilities, with adjusted measures suggesting a particularly robust liquidity posture despite some fluctuations.

The financial data over the given periods reveals several notable trends related to the company's debt levels, equity base, and leverage ratios.

Total Debt

The total debt experienced a significant decrease over the observed years. It started at 394,687 thousand US dollars at the end of 2019, increased slightly to 410,111 thousand in 2020, but then sharply declined to 108,426 thousand in 2021 and further reduced to 50,115 thousand by the end of 2022. Data for 2023 is missing.

Shareholders’ Equity

The shareholders' equity demonstrated a strong upward trend from 1,480,158 thousand US dollars in 2019 to 2,206,018 thousand in 2020, followed by further growth to 2,562,444 thousand in 2021. There was a slight decline in 2022 to 2,451,294 thousand, but equity figures picked up again in 2023, reaching 2,525,897 thousand.

Reported Debt to Equity Ratio

This ratio steadily decreased over the years, indicating a reduction in the company’s leverage. The ratio dropped from 0.27 in 2019 to 0.19 in 2020, then to 0.04 in 2021, and further to 0.02 in 2022. The value for 2023 is unavailable.

Adjusted Total Debt

Adjusted total debt mirrored the trend seen in reported total debt but shown at higher absolute values each year. It was 460,012 thousand in 2019 and rose slightly to 472,757 thousand in 2020. Thereafter, it considerably decreased to 184,581 thousand in 2021 and continued falling to 132,885 thousand in 2022. By 2023, adjusted total debt further declined to 82,614 thousand.

Adjusted Shareholders’ Equity

Adjusted equity amounts followed a pattern similar to reported equity, with increases from 1,611,302 thousand in 2019 to a peak of 2,759,718 thousand in 2021. Afterward, it declined to 2,577,509 thousand in 2022 and slightly decreased again to 2,539,974 thousand by 2023.

Adjusted Debt to Equity Ratio

The adjusted debt to equity ratio consistently fell throughout the period. Starting at 0.29 in 2019, it decreased steadily to 0.20 in 2020, 0.07 in 2021, then 0.05 in 2022, and finally reached 0.03 in 2023. This trend affirms a continual reduction in financial leverage when adjusted figures are considered.

Overall, the data points to a pronounced reduction in leverage, both reported and adjusted, underscored by a strong growth in equity, especially in the earlier years. The company's managed to reduce its debt substantially from 2020 onward while maintaining a robust equity base. The decline in adjusted total debt and adjusted debt to equity ratio through 2023 highlights a strategic emphasis on reinforcing the balance sheet and minimizing financial risk over time.

The financial data exhibits several noteworthy trends over the five-year period.

Total debt

Total debt showed a marginal increase from 2019 to 2020, rising from approximately 395 million to 410 million US dollars. Subsequently, there was a substantial decline in total debt in 2021, falling to about 108 million US dollars, followed by a further decrease to roughly 50 million US dollars in 2022. Data for 2023 is missing, preventing a full trend analysis for that year.

Total capital

Total capital experienced growth from 2019 to 2021, increasing from approximately 1.87 billion to 2.67 billion US dollars. However, it slightly decreased in 2022 to around 2.5 billion US dollars and then modestly increased again in 2023, reaching around 2.53 billion US dollars.

Reported debt to capital

The reported debt to capital ratio steadily declined over the period available. It started at 0.21 in 2019 and gradually diminished to 0.16 in 2020, dropping sharply to 0.04 in 2021 and further decreasing to 0.02 in 2022. The absence of 2023 data limits interpretation for that year.

Adjusted total debt

Adjusted total debt followed a similar pattern to total debt with values slightly higher due to adjustments. It rose modestly from 460 million US dollars in 2019 to approximately 473 million US dollars in 2020, then significantly declined to 185 million US dollars in 2021, with continuing reductions in 2022 and 2023 to 133 million and 83 million US dollars, respectively.

Adjusted total capital

Adjusted total capital generally increased from about 2.07 billion in 2019 to 2.94 billion in 2021 before declining slightly to 2.71 billion in 2022 and decreasing further to 2.62 billion US dollars in 2023.

Adjusted debt to capital

The adjusted debt to capital ratio decreased from 0.22 in 2019 to 0.16 in 2020, followed by a drop to 0.06 in 2021. This ratio further declined to 0.05 in 2022 and 0.03 in 2023, indicating a consistent reduction in leverage when considering the adjusted figures.

Overall, the data indicates a strong reduction in leverage, as shown by the declining debt-to-capital ratios on both reported and adjusted bases. Despite some fluctuations, total and adjusted capital grew overall during the period, peaking around 2021 and then slightly retrenching. The substantial decreases in total and adjusted debt from 2020 onwards suggest a strategic effort to deleverage and strengthen the capital structure.

Total Assets

Total assets exhibited a notable increase from 2,787,014 thousand USD in 2019 to a peak of 3,809,425 thousand USD in 2021. Thereafter, a decline occurred over the following two years, reaching 3,486,824 thousand USD in 2023. This suggests a period of asset expansion followed by a moderate contraction or stabilization.

Shareholders’ Equity

Shareholders’ equity demonstrated a consistent upward trajectory from 1,480,158 thousand USD in 2019 to 2,562,444 thousand USD in 2021. Although it decreased slightly in 2022, the equity level remained relatively stable in 2023 at 2,525,897 thousand USD. Overall, equity values indicate sustained growth with a minor recent dip.

Reported Financial Leverage

The reported financial leverage ratio steadily decreased over the period, from 1.88 in 2019 to 1.38 in 2023. This declining trend reflects a strengthening equity base relative to total liabilities, indicating a progressively more conservative capital structure.

Adjusted Total Assets

Adjusted total assets followed a pattern similar to reported total assets, rising from 2,713,565 thousand USD in 2019 to 3,709,009 thousand USD in 2021, then falling to 3,313,037 thousand USD in 2023. This trend corroborates the reported asset trend, confirming a peak around 2021 followed by decline.

Adjusted Shareholders’ Equity

Adjusted shareholders’ equity increased significantly from 1,611,302 thousand USD in 2019 to 2,759,718 thousand USD by 2021, then declined gradually to 2,539,974 thousand USD in 2023. The pattern reflects a general strengthening of equity before a slight reduction in the most recent years.

Adjusted Financial Leverage

The adjusted financial leverage ratio decreased consistently from 1.68 in 2019 to 1.30 in 2023. This indicates an ongoing improvement in the company’s leverage position, denoting increased equity support relative to adjusted assets and implying reduced reliance on debt or liabilities.

The financial data over the five-year period reveals notable fluctuations in profitability and revenue trends. Both net income and adjusted net income increased significantly from 2019 through 2021, peaking in 2021, followed by a marked decline in 2022 and continuing into 2023. Specifically, net income grew from approximately 467 million USD in 2019 to over 1 billion USD in 2021, then decreased to approximately 715 million USD in 2022 and further to about 449 million USD in 2023. Adjusted net income exhibits a similar pattern, increasing from around 497 million USD in 2019 to nearly 1 billion USD in 2021, before declining to about 357 million USD in 2023.

Revenues and adjusted revenues display a comparable trajectory, rising steadily from 2019 to 2021, followed by a decline afterwards. Revenues increased from roughly 2.29 billion USD in 2019 to about 3.7 billion USD in 2021 before decreasing to approximately 2.68 billion USD in 2023. Adjusted revenues show a similar trend, from approximately 2.34 billion USD in 2019 to 3.71 billion USD in 2021, declining to near 2.62 billion USD in 2023.

Profit margins, both reported and adjusted, reflect these changes in profitability relative to revenues. The reported net profit margin rose from 20.37% in 2019 to a high of 27.4% in 2021, then decreased to 16.77% by 2023. Adjusted net profit margin followed a similar path, peaking at 28.2% in 2020, then declining more sharply to 13.66% by 2023.

Profitability Trends

Strong growth in net income and adjusted net income was observed through 2021, indicating improved earnings performance. However, the subsequent decline through 2023 suggests challenges that impacted profitability negatively.

Revenue Patterns

Revenues and adjusted revenues expanded significantly until 2021, but the decline thereafter points to reduced sales or market contraction in the later years.

Profit Margins

Margins peaked in 2020-2021, indicating heightened operational efficiency or favorable business conditions. The decline in margins by 2023 suggests increased costs, pricing pressure, or other factors negatively affecting profitability.

Overall Insight

The data reflects a period of strong growth followed by a notable downturn in both top-line and bottom-line metrics, with profitability margins compressing significantly toward the end of the period.

The financial data reveals several key trends in profitability and equity performance over the five-year period ending December 31, 2023.

Net Income

There was a notable increase in net income from 2019 through 2021, rising from approximately 467 million USD to over 1 billion USD. However, this upward trajectory reversed sharply beginning in 2022, with net income decreasing significantly to 715 million USD and further declining to 449 million USD by the end of 2023.

Shareholders' Equity

Shareholders' equity showed consistent growth from 2019 to 2021, increasing from roughly 1.48 billion USD to 2.56 billion USD. This was followed by a slight reduction in 2022 to approximately 2.45 billion USD, before modestly recovering to about 2.53 billion USD in 2023.

Reported Return on Equity (ROE)

The reported ROE mirrored net income trends by improving from 31.58% in 2019 to a peak of 39.59% in 2021. Thereafter, it declined markedly to 29.19% in 2022 and continued the downward trend to reach 17.77% in 2023, indicating a reduction in profitability relative to shareholders' investment.

Adjusted Net Income

Adjusted net income, which accounts for one-time or non-recurring items, followed a similar pattern as net income. It rose steadily from about 497 million USD in 2019 to nearly 1 billion USD in 2021, then dropped sharply to 607 million USD in 2022 and further declined to approximately 358 million USD by 2023.

Adjusted Shareholders' Equity

Adjusted shareholders' equity also increased over the first three years, from 1.61 billion USD in 2019 to 2.76 billion USD in 2021. It then decreased to around 2.58 billion USD in 2022 and continued marginally lower to approximately 2.54 billion USD in 2023.

Adjusted Return on Equity (Adjusted ROE)

This metric peaked in 2020 at 37.22%, then declined gradually to 35.73% in 2021. The decrease became more pronounced in subsequent years, dropping to 23.54% in 2022 and then to 14.09% in 2023, signaling a significant weakening in adjusted profitability relative to equity.

In summary, the period from 2019 to 2021 was characterized by strong growth in income, equity, and profitability metrics. Starting in 2022, the company experienced a considerable downturn in both net and adjusted income as well as returns on equity, despite relatively stable levels of shareholders' equity. This indicates challenges in maintaining profitability and return efficiency in the most recent years analyzed.

Net Income

The net income showed a notable upward trend from 2019 to 2021, increasing from 467,468 thousand US dollars to a peak of 1,014,589 thousand US dollars. However, there was a decline in 2022 to 715,501 thousand US dollars, followed by a further decrease in 2023 to 448,752 thousand US dollars, marking a significant reduction from the peak level.

Total Assets

Total assets increased steadily from 2,787,014 thousand US dollars in 2019 to 3,809,425 thousand US dollars in 2021. After this peak, total assets declined to 3,501,252 thousand US dollars in 2022 and remained relatively stable, with a slight decrease to 3,486,824 thousand US dollars in 2023.

Reported Return on Assets (ROA)

The reported ROA exhibited a positive trend from 16.77% in 2019 to 26.63% in 2021, indicating improved efficiency in generating income from assets. However, this was followed by a decline to 20.44% in 2022 and a further drop to 12.87% in 2023, reflecting a reduction in asset profitability in recent years.

Adjusted Net Income

Adjusted net income mirrored the general pattern of reported net income, growing consistently from 496,992 thousand US dollars in 2019 to 986,066 thousand US dollars in 2021. Thereafter, it decreased sharply to 606,757 thousand US dollars in 2022 and further declined to 357,937 thousand US dollars in 2023, indicating weaker adjusted profitability in the last two years.

Adjusted Total Assets

Adjusted total assets followed a trajectory similar to total assets, rising from 2,713,565 thousand US dollars in 2019 to 3,709,009 thousand US dollars in 2021, then falling to 3,360,423 thousand US dollars in 2022 and decreasing slightly again to 3,313,037 thousand US dollars in 2023. This suggests a modest reduction in asset base after the peak year.

Adjusted Return on Assets (ROA)

The adjusted ROA increased from 18.32% in 2019 to 26.59% in 2021, demonstrating enhanced operational efficiency. Nonetheless, it declined notably to 18.06% in 2022 and then to 10.8% in 2023, highlighting a marked downturn in the company’s ability to generate adjusted net income relative to its assets during this period.