Teradyne, Inc. (TER) Financials
A multiple compares the market's price with a filed figure; it says what the market pays, not how the business is doing. The market capitalization is the vendor's as of Oct 10, 2026; every other figure is from the SEC filings on this page. Not financial advice.
Newest figures come from the 10-Q for Q2 FY2026, filed Jul 31, 2026. Each column of the statement tables below links to the filing it was taken from, and every filing is listed on the TER SEC filings page.
Teradyne, Inc. (TER) reported $4.5B in revenue over the twelve months to Jun 28, 2026, up 57.9% from the prior twelve months. This page shows its income statement, balance sheet, cash flow statement, and key financial ratios. View 15 years of annual fundamentals and quarterly data, with year-over-year growth rates and compound annual growth rates (CAGR). All figures are derived from SEC filings (10-K and 10-Q reports).
Teradyne’s recovery is revenue-led, but heavier working capital and buybacks make 2025 cash less flexible than earnings suggest.
Revenue recovered to$3.2B while operating margin improved to20.4% by FY2025, showing that core profitability regained ground. Yet cash conversion remained weaker: free-cash-flow margin was14.1% , below FY2023’s15.9% , so earnings improvement did not fully become distributable cash.
The balance sheet’s liquidity cushion narrowed: current ratio fell to 1.7x as total liabilities reached
Operating cash flow was
Financial Health Signals
Scored against operating companies for FY2025. Each of the six dimensions is a percentile rank within that peer group; the overall is their average, with missing dimensions counted as zero out of six. A high score means strong standing among peers, not absolute cross-industry strength. How this score is calculated →
Health score ≠ stock price. This rates the quality of Teradyne, Inc.'s business: profitability, growth, balance sheet strength. It doesn't tell you whether the stock is a good buy at today's price. Not financial advice. Use it alongside valuation analysis and your own research.
Teradyne, Inc. has an operating margin of 20.4%, meaning the company retains $20 of operating profit per $100 of revenue. This strong profitability earns a score of 82/100, reflecting efficient cost management and pricing power. This is down from 21.1% the prior year.
Teradyne, Inc.'s revenue grew 13.1% year-over-year to $3.2B, a solid pace of expansion. This earns a growth score of 63/100.
Teradyne, Inc. has a moderate D/E ratio of 0.50. This balance of debt and equity financing earns a leverage score of 61/100.
Teradyne, Inc.'s current ratio of 1.75 indicates adequate short-term liquidity, earning a score of 51/100. The company can meet its near-term obligations, though with limited headroom.
Teradyne, Inc. converts 14.1% of revenue into free cash flow ($450.4M). This strong cash generation earns a score of 79/100.
Teradyne, Inc. earns a strong 19.8% return on equity (ROE), meaning it generates $20 of profit for every $100 of shareholders' equity. This efficient capital use earns a returns score of 82/100. This is up from 19.2% the prior year.
Teradyne, Inc. scores 28.98, well above the 2.99 safe threshold. The score is driven primarily by a large market capitalization ($63.0B) relative to total liabilities ($1.4B). This indicates low bankruptcy risk based on profitability, leverage, and asset efficiency.
Distress-screening estimate for non-financial companies. Not computed for banks or insurers, where the Altman model does not apply.
Teradyne, Inc. passes 5 of 8 computable financial strength tests (1 of the nine could not be computed from available data). 3 of 4 profitability signals pass, 1 of 2 leverage/liquidity signals pass, 1 of 2 efficiency signals pass.
For every $1 of reported earnings, Teradyne, Inc. generates $1.22 in operating cash flow ($674.4M OCF vs $554.0M net income). This indicates profits are well-supported by actual cash generation, not accounting adjustments.
Teradyne, Inc. earns $94.95 in operating income for every $1 of interest expense ($650.1M vs $6.8M). This wide margin provides strong safety for debt servicing, even if earnings decline temporarily.
Key Financial Metrics
Earnings & Revenue
Teradyne, Inc. generated $1.3B in revenue in Q2 2026. This represents an increase of 103.9% from the same quarter a year earlier. Against the prior quarter it is up 3.6%.
Teradyne, Inc.'s EBITDA was $471.5M in Q2 2026, measuring earnings before interest, taxes, depreciation, and amortization. This represents an increase of 286.0% from the same quarter a year earlier. Against the prior quarter it is down 6.8%.
Teradyne, Inc. reported $374.5M in net income in Q2 2026. This represents an increase of 377.9% from the same quarter a year earlier. Against the prior quarter it is down 6.1%.
Teradyne, Inc. earned $2.38 per diluted share (EPS) in Q2 2026. This represents an increase of 385.7% from the same quarter a year earlier. Against the prior quarter it is down 5.9%.
Cash & Balance Sheet
Teradyne, Inc. generated $378.4M in free cash flow in Q2 2026, representing cash available after capex. This represents an increase of 187.4% from the same quarter a year earlier. Against the prior quarter it is up 88.8%.
Teradyne, Inc. held $349.5M in cash as of Q2 2026; long-term debt is not reported for that period.
Teradyne, Inc. paid $0.13 per share in dividends in Q2 2026. This represents an increase of 8.3% from the same quarter a year earlier. It is unchanged from the prior quarter.
Margins & Returns
Teradyne, Inc.'s gross margin was 59.8% in Q2 2026, indicating the percentage of revenue retained after direct costs. This is up 2.6 percentage points from the same quarter a year earlier. Against the prior quarter it is down 1.1 percentage points.
Teradyne, Inc.'s operating margin was 32.9% in Q2 2026, reflecting core business profitability. This is up 19.0 percentage points from the same quarter a year earlier. Against the prior quarter it is down 3.9 percentage points.
Teradyne, Inc.'s net profit margin was 28.2% in Q2 2026, showing the share of revenue converted to profit. This is up 16.2 percentage points from the same quarter a year earlier. Against the prior quarter it is down 2.9 percentage points.
Teradyne, Inc.'s ROE was 10.9% in Q2 2026, measuring profit generated per dollar of shareholder equity. This is up 8.1 percentage points from the same quarter a year earlier. Against the prior quarter it is down 1.8 percentage points.
Capital Allocation
Teradyne, Inc. invested $156.3M in research and development in Q2 2026. This represents an increase of 32.0% from the same quarter a year earlier. Against the prior quarter it is up 15.3%.
Teradyne, Inc. spent $68.7M on share buybacks in Q2 2026, returning capital to shareholders by reducing shares outstanding. This represents a decrease of 41.5% from the same quarter a year earlier. Against the prior quarter it is up 1145.4%.
Teradyne, Inc. invested $90.7M in capex in Q2 2026, funding long-term assets and infrastructure. This represents an increase of 79.9% from the same quarter a year earlier. Against the prior quarter it is up 40.1%.
TER Income Statement
Figures in USD, abbreviated K (thousand), M (million), B (billion), T (trillion). Negative values carry a minus sign and red type. Each change compares the year with the year before it, and each quarter with the same quarter a year earlier.
| Metric | Q2'2610-Q | Q1'2610-Q | Q4'2510-Q | Q3'2510-Q | Q2'2510-Q | Q1'2510-Q | Q4'2410-K | Q3'2410-Q |
|---|---|---|---|---|---|---|---|---|
| Revenue | $1.3B+103.9% | $1.3B+87.0% | $1.1B+43.9% | $769.2M+4.3% | $651.8M-10.7% | $685.7M+14.3% | $752.9M+7.0% | $737.3M+7.7% |
| Cost of Revenue | $534.4M+91.7% | $501.5M+85.5% | $463.6M+51.7% | $319.9M+6.4% | $278.8M-8.3% | $270.3M+3.8% | $305.6M+0.1% | $300.8M+6.7% |
| Gross Profit | $794.6M+113.0% | $780.9M+88.0% | $619.7M+38.5% | $449.3M+2.9% | $373.0M-12.4% | $415.3M+22.4% | $447.3M+12.3% | $436.5M+8.5% |
| R&D Expenses | $156.3M+32.0% | $135.6M+14.7% | $143.3M+11.6% | $124.8M+6.2% | $118.4M+5.9% | $118.2M+14.5% | $128.4M+23.0% | $117.5M+11.1% |
| SG&A Expenses | $192.5M+22.0% | $166.7M+6.0% | $164.7M+5.7% | $169.1M+7.3% | $157.8M+2.1% | $157.3M+5.4% | $155.7M+12.6% | $157.6M+8.2% |
| Operating Income | $437.8M+382.5% | $473.0M+291.5% | $293.2M+90.9% | $145.3M-4.4% | $90.7M-56.9% | $120.8M+55.3% | $153.6M+6.7% | $152.1M+8.7% |
| EBITDA | $471.5M+286.0% | $505.7M+234.6% | $329.0M+78.1% | $175.8M-3.6% | $122.1M-49.2% | $151.1M+42.7% | $184.7M+7.2% | $182.4M+9.0% |
| Interest Expense | $3.0M+268.2% | $3.2M+296.4% | $3.9M+569.6% | $1.3M+62.0% | $805K-47.4% | $795K+20.3% | $588K-38.9% | $808K-22.7% |
| Income Tax | $66.8M+444.8% | $62.2M+327.4% | $29.2M+439.0% | $23.3M+90.4% | $12.3M-63.0% | $14.5M+67.1% | $5.4M-66.5% | $12.3M-49.7% |
| Net Income | $374.5M+377.9% | $398.9M+303.4% | $257.2M+75.9% | $119.6M-17.9% | $78.4M-57.9% | $98.9M+54.1% | $146.3M+14.2% | $145.6M+21.3% |
| EPS (Basic) | $2.39+387.8% | $2.55+318.0% | $1.63+81.1% | $0.75-15.7% | $0.49-58.5% | $0.61+45.2% | $0.90+8.4% | $0.89+14.1% |
| EPS (Diluted) | $2.38+385.7% | $2.53+314.8% | $1.62+80.0% | $0.75-15.7% | $0.49-57.0% | $0.61+52.5% | $0.90+15.4% | $0.89+21.9% |
| Diluted Shares (Avg) | 158M-1.5% | 158M-2.7% | N/A | 159M-3.1% | 160M-2.0% | 162M-0.2% | N/A | 164M-0.3% |
TER Balance Sheet
Figures in USD, abbreviated K (thousand), M (million), B (billion), T (trillion). Negative values carry a minus sign and red type. Each change compares the year with the year before it, and each quarter with the same quarter a year earlier.
| Metric | Q2'2610-Q | Q1'2610-Q | Q4'2510-Q | Q3'2510-Q | Q2'2510-Q | Q1'2510-Q | Q4'2410-K | Q3'2410-Q |
|---|---|---|---|---|---|---|---|---|
| Total Assets | $4.9B+30.9% | $4.4B+19.6% | $4.2B+12.8% | $4.0B+5.1% | $3.8B+3.6% | $3.7B+8.7% | $3.7B+10.0% | $3.8B+11.0% |
| Current Assets | $2.4B+49.4% | $2.2B+23.8% | $1.9B+7.3% | $1.8B-4.8% | $1.6B-9.8% | $1.8B-15.0% | $1.8B-13.5% | $1.8B-13.4% |
| Cash & Equivalents | $349.5M+3.0% | $241.9M-49.1% | $293.8M-46.9% | $272.7M-46.5% | $339.3M-19.6% | $475.6M-32.8% | $553.4M-13.1% | $510.0M-16.8% |
| Short-Term Investments | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
| Inventory | $403.3M+15.1% | $362.8M+5.1% | $379.6M+27.2% | $366.8M+23.3% | $350.5M+21.4% | $345.1M+9.8% | $298.5M-7.5% | $297.3M-14.4% |
| Accounts Receivable | $1.1B+156.3% | $1.1B+140.6% | $786.9M+66.9% | $593.8M+22.6% | $433.0M-7.9% | $460.4M+8.0% | $471.4M+3.4% | $484.4M-1.8% |
| Long-Term Investments | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
| Goodwill | $663.8M+27.5% | $514.2M+25.6% | $521.0M+31.8% | $519.5M+23.9% | $520.5M+28.5% | $409.3M+0.4% | $395.4M-1.4% | $419.4M+1.8% |
| Total Liabilities | $1.5B+57.1% | $1.3B+42.0% | $1.4B+56.0% | $1.2B+43.7% | $924.6M+2.6% | $908.3M+6.5% | $889.4M-4.3% | $867.2M-9.7% |
| Current Liabilities | $1.1B+64.9% | $1.0B+55.9% | $1.1B+78.6% | $995.0M+67.3% | $675.3M+7.8% | $649.1M+17.1% | $624.6M-2.5% | $594.9M-11.2% |
| Non-Current Liabilities | $338.8M+35.9% | $277.8M+7.1% | $272.6M+2.9% | $251.5M-7.6% | $249.3M-9.2% | $259.3M-13.2% | $264.8M-8.3% | $272.3M-6.2% |
| Total Equity | $3.4B+21.1% | $3.1B+12.4% | $2.8B-0.8% | $2.7B-6.4% | $2.8B+3.9% | $2.8B+9.4% | $2.8B+15.5% | $2.9B+19.2% |
| Retained Earnings | $1.4B+68.1% | $1.1B+25.1% | $744.4M-23.3% | $686.8M-30.6% | $834.9M-6.1% | $893.2M+22.3% | $970.8M+48.4% | $990.0M+49.7% |
Not reported in any period shown, so not listed: Long-Term Debt.
TER Cash Flow Statement
Figures in USD, abbreviated K (thousand), M (million), B (billion), T (trillion). Negative values carry a minus sign and red type. Each change compares the year with the year before it, and each quarter with the same quarter a year earlier.
| Metric | Q2'2610-Q | Q1'2610-Q | Q4'2510-Q | Q3'2510-Q | Q2'2510-Q | Q1'2510-Q | Q4'2410-K | Q3'2410-Q |
|---|---|---|---|---|---|---|---|---|
| Operating Cash Flow | $469.1M+157.6% | $265.1M+64.0% | $281.6M-0.3% | $49.0M-70.5% | $182.1M-15.7% | $161.6M+2120.6% | $282.6M+62.1% | $166.3M+16.5% |
| Depreciation & Amortization | $33.6M+7.2% | $32.7M+7.8% | $35.8M+14.9% | $30.5M+0.7% | $31.4M+3.9% | $30.3M+7.8% | $31.1M+9.8% | $30.3M+10.6% |
| Stock-Based Compensation | N/A | $21.9M+44.1% | N/A | N/A | N/A | $15.2M-3.5% | N/A | N/A |
| Capital Expenditures | $90.7M+79.9% | $64.7M+1.1% | $62.9M+9.6% | $46.7M-9.9% | $50.4M+12.4% | $64.0M+45.4% | $57.4M+65.8% | $51.8M+32.1% |
| Free Cash Flow | $378.4M+187.4% | $200.4M+105.3% | $218.8M-2.9% | $2.4M-97.9% | $131.7M-23.1% | $97.6M+365.7% | $225.2M+61.1% | $114.4M+10.5% |
| Investing Cash Flow | -$271.3M-52.0% | -$67.3M-8.9% | -$60.9M+9.7% | -$67.5M-35.5% | -$178.5M+62.9% | -$61.8M-157.2% | -$67.5M-145.0% | -$49.8M-85.6% |
| Financing Cash Flow | -$90.7M+33.7% | -$250.2M-41.5% | -$200.8M-23.1% | -$47.8M-63.2% | -$136.8M-505.2% | -$176.8M-382.2% | -$163.2M-27.9% | -$29.3M+80.9% |
| Dividends Paid | $20.3M+6.0% | $20.4M+4.9% | $18.7M-3.8% | $19.0M-2.9% | $19.2M+1.1% | $19.4M+5.6% | $19.5M+15.3% | $19.6M+15.1% |
| Share Buybacks | $68.7M-41.5% | $5.5M-96.5% | $183.4M+27.8% | $243.8M+885.1% | $117.4M+1333.6% | $157.5M+612.0% | $143.5M+21.0% | $24.7M-81.6% |
TER Financial Ratios
Margins and returns are percentages; the remaining ratios are unitless multiples. Each change compares the year with the year before it, and each quarter with the same quarter a year earlier.
| Metric | Q2'2610-Q | Q1'2610-Q | Q4'2510-Q | Q3'2510-Q | Q2'2510-Q | Q1'2510-Q | Q4'2410-K | Q3'2410-Q |
|---|---|---|---|---|---|---|---|---|
| Gross Margin | 59.8%+2.6pp | 60.9%+0.3pp | 57.2%-2.2pp | 58.4%-0.8pp | 57.2%-1.1pp | 60.6%+4.0pp | 59.4%+2.8pp | 59.2%+0.4pp |
| Operating Margin | 32.9%+19.0pp | 36.9%+19.3pp | 27.1%+6.7pp | 18.9%-1.7pp | 13.9%-14.9pp | 17.6%+4.6pp | 20.4%-0.1pp | 20.6%+0.2pp |
| Net Margin | 28.2%+16.2pp | 31.1%+16.7pp | 23.7%+4.3pp | 15.5%-4.2pp | 12.0%-13.5pp | 14.4%+3.7pp | 19.4%+1.2pp | 19.8%+2.2pp |
| Return on Equity | 10.9%+8.1pp | 12.7%+9.2pp | 9.2%+4.0pp | 4.4%-0.6pp | 2.8%-4.1pp | 3.5%+1.0pp | 5.2%-0.1pp | 5.0%+0.1pp |
| Return on Assets | 7.6%+5.5pp | 9.0%+6.3pp | 6.2%+2.2pp | 3.0%-0.8pp | 2.1%-3.0pp | 2.7%+0.8pp | 3.9%+0.1pp | 3.9%+0.3pp |
| Current Ratio | 2.12-0.2x | 2.15-0.6x | 1.75-1.2x | 1.76-1.3x | 2.35-0.5x | 2.70-1.0x | 2.91-0.4x | 3.09-0.1x |
| Debt-to-Equity | 0.42+0.1x | 0.41+0.1x | 0.50+0.2x | 0.46+0.2x | 0.330.0x | 0.320.0x | 0.32-0.1x | 0.30-0.1x |
| Asset Turnover | 0.27+0.1x | 0.29+0.1x | 0.26+0.1x | 0.190.0x | 0.170.0x | 0.180.0x | 0.200.0x | 0.200.0x |
| FCF Margin | 28.5%+8.3pp | 15.6%+1.4pp | 20.2%-9.7pp | 0.3%-15.2pp | 20.2%-3.3pp | 14.2%+20.4pp | 29.9%+10.0pp | 15.5%+0.4pp |
Similar Companies
Newest fiscal year on record for each company. The health score is the peer-relative Financial Health Score for that year; a dash means no score is published for it.
| Company | Fiscal year | Revenue | Net income | Net margin | Market cap | Health score |
|---|---|---|---|---|---|---|
| Teradyne, Inc. TER | FY2025 | $3.2B | $554.0M | 17.4% | $63.0B | 70/100 |
| Entegris Inc ENTG | FY2025 | $3.2B | $235.6M | 7.4% | $25.3B | 51/100 |
| Lam Research Corp LRCX | FY2026 | $23.2B | $7.3B | 31.3% | $399.0B | 88/100 |
| Applied Materials, Inc. AMAT | FY2025 | $28.4B | $7.0B | 24.7% | $402.4B | 81/100 |
| KLA Corporation KLAC | FY2026 | $13.6B | $4.8B | 35.6% | $255.2B | 50/100 |
| Nova Ltd. NVMI | FY2025 | $880.6M | $259.2M | 29.4% | $11.2B | 84/100 |
Where Teradyne, Inc. Ranks
Frequently Asked Questions
What is Teradyne, Inc.'s annual revenue?
Teradyne, Inc. (TER) reported $3.2B in total revenue for fiscal year 2025. This represents a 13.1% change compared to the previous fiscal year. Revenue measures the total income earned from the company's primary business operations before any expenses are deducted.
How fast is Teradyne, Inc.'s revenue growing?
Teradyne, Inc. (TER) revenue grew by 13.1% year-over-year, from $2.8B to $3.2B in fiscal year 2025.
Is Teradyne, Inc. profitable?
Yes, Teradyne, Inc. (TER) reported a net income of $554.0M in fiscal year 2025, with a net profit margin of 17.4%.
What is Teradyne, Inc.'s EBITDA?
Teradyne, Inc. (TER) had EBITDA of $778.0M in fiscal year 2025, measuring earnings before interest, taxes, depreciation, and amortization.
What is Teradyne, Inc.'s gross margin?
Teradyne, Inc. (TER) had a gross margin of 58.2% in fiscal year 2025, indicating the percentage of revenue retained after direct costs of goods sold.
What is Teradyne, Inc.'s operating margin?
Teradyne, Inc. (TER) had an operating margin of 20.4% in fiscal year 2025, reflecting the profitability of core business operations before interest and taxes.
What is Teradyne, Inc.'s net profit margin?
Teradyne, Inc. (TER) had a net profit margin of 17.4% in fiscal year 2025, representing the share of revenue converted into profit after all expenses.
Does Teradyne, Inc. pay dividends?
Yes, Teradyne, Inc. (TER) paid $0.48 per share in dividends during fiscal year 2025.
What is Teradyne, Inc.'s return on equity (ROE)?
Teradyne, Inc. (TER) has a return on equity of 19.8% for fiscal year 2025, measuring how efficiently the company generates profit from shareholder equity.
What is Teradyne, Inc.'s free cash flow?
Teradyne, Inc. (TER) generated $450.4M in free cash flow during fiscal year 2025. This represents a -5.0% change compared to the previous fiscal year. Free cash flow represents the cash a company generates after accounting for capital expenditures, and is widely used to assess financial flexibility and shareholder value.
What is Teradyne, Inc.'s operating cash flow?
Teradyne, Inc. (TER) generated $674.4M in operating cash flow during fiscal year 2025, representing cash generated from core business activities.
What are Teradyne, Inc.'s total assets?
Teradyne, Inc. (TER) had $4.2B in total assets as of fiscal year 2025, including both current and long-term assets.
What are Teradyne, Inc.'s capital expenditures?
Teradyne, Inc. (TER) invested $224.0M in capital expenditures during fiscal year 2025, funding long-term assets and infrastructure.
How much does Teradyne, Inc. spend on research and development?
Teradyne, Inc. (TER) invested $504.6M in research and development during fiscal year 2025.
What is Teradyne, Inc.'s current ratio?
Teradyne, Inc. (TER) had a current ratio of 1.75 as of fiscal year 2025, which is generally considered healthy.
What is Teradyne, Inc.'s debt-to-equity ratio?
Teradyne, Inc. (TER) had a debt-to-equity ratio of 0.50 as of fiscal year 2025, measuring the company's financial leverage by comparing total debt to shareholder equity.
What is Teradyne, Inc.'s return on assets (ROA)?
Teradyne, Inc. (TER) had a return on assets of 13.2% for fiscal year 2025, measuring how efficiently the company uses its assets to generate profit.
What is Teradyne, Inc.'s P/E ratio?
Teradyne, Inc. (TER) trades at 54.7x earnings, its market capitalization divided by net income of $1.2B net income, trailing 12 months to June 28, 2026. The market capitalization is $63.0B as of Oct 10, 2026; a multiple compares that price with a filed figure and says nothing about the quality of the business.
What is Teradyne, Inc.'s price-to-sales ratio?
Teradyne, Inc. (TER) trades at 14.1x sales, its market capitalization divided by revenue of $4.5B revenue, trailing 12 months to June 28, 2026. The market capitalization is $63.0B as of Oct 10, 2026; a multiple compares that price with a filed figure and says nothing about the quality of the business.
What is Teradyne, Inc.'s Altman Z-Score?
Teradyne, Inc. (TER) has an Altman Z-Score of 28.98, placing it in the Safe Zone (low bankruptcy risk). The Z-Score combines five financial ratios (working capital, retained earnings, EBIT, market capitalization, and revenue relative to total assets) to predict the likelihood of bankruptcy. Scores above 2.99 indicate financial safety while scores below 1.81 suggest financial distress. Learn more in our complete guide to financial health indicators.
What is Teradyne, Inc.'s Piotroski F-Score?
Teradyne, Inc. (TER) has a Piotroski F-Score of 5 out of 8 computable signals; 1 of the nine could not be computed from available data, so the full-scale strength rating is not shown. The F-Score evaluates nine binary signals across profitability (positive ROA, positive cash flow, improving ROA, earnings quality), leverage (decreasing debt, improving liquidity, no share dilution), and operating efficiency (improving gross margin, improving asset turnover). Scores of 7 to 9 indicate strong and improving fundamentals. Learn more in our complete guide to financial health indicators.
Are Teradyne, Inc.'s earnings high quality?
Teradyne, Inc. (TER) has an earnings quality ratio of 1.22x, considered cash-backed (high quality). This ratio compares operating cash flow to net income. A ratio above 1.0x means the company generates more cash than its reported earnings, indicating sustainable, cash-backed profits. Ratios below 1.0x suggest earnings rely on accounting accruals rather than actual cash generation. Learn more in our complete guide to financial health indicators.
Can Teradyne, Inc. cover its interest payments?
Teradyne, Inc. (TER) has an interest coverage ratio of 94.95x, meaning it can comfortably cover its interest obligations. This ratio divides operating income by interest expense. Ratios above 5x indicate strong debt-servicing ability, while ratios below 2x suggest the company may face difficulty meeting interest payments if earnings decline. Learn more in our complete guide to financial health indicators.
How financially healthy is Teradyne, Inc.?
Teradyne, Inc. (TER) scores 70 out of 100 on our Financial Health Score, indicating strong standing within its operating companies peer group. The score is a 0-100 composite of six dimensions (Profitability, Growth, Leverage, Liquidity, Cash Flow, Returns), each ranked as a percentile relative to companies in the same scoring family (banks against banks, REITs against REITs, and so on) rather than across all industries. It rates the quality of the business, not whether the stock is fairly priced, and is not financial advice. Learn more in our complete guide to financial health indicators.