Stock Analysis on Net
Stock Analysis on Net

Teradyne Inc. (NASDAQ:TER)

This company has been moved to the archive! The financial data has not been updated since May 3, 2024.

Common-Size Balance Sheet: Assets 

Teradyne Inc., common-size consolidated balance sheet: assets

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Cash and cash equivalents 21.73 24.41 29.46 25.03 27.77
Marketable securities 1.78 1.13 6.41 14.30 4.93
Accounts receivable, less allowance for credit losses 12.11 14.03 14.46 13.62 13.00
Inventories, net 8.89 9.28 6.39 6.08 7.06
Contract manufacturer and supplier prepayments 14.40 14.03 9.57 5.81 5.15
Prepaid maintenance and other services 0.50 0.42 0.36 0.36 0.31
Prepaid taxes 0.46 0.53 0.40 0.26 0.29
Other prepayments 0.37 0.25 0.34 0.42 0.60
Prepayments 15.74% 15.22% 10.66% 6.85% 6.34%
Other current assets 1.09 0.41 0.25 0.25 0.43
Current assets held for sale 0.67 0.00 0.00 0.00 0.00
Current assets 62.01% 64.49% 67.63% 66.13% 59.52%
Property, plant and equipment, net 12.78 11.96 10.17 10.81 11.49
Operating lease right-of-use assets, net 2.11 2.11 1.81 1.49 2.06
Marketable securities 3.37 3.16 3.51 3.23 3.75
Deferred tax assets 5.04 4.08 2.69 2.41 2.70
Retirement plans assets 0.33 0.34 0.40 0.48 0.66
Other assets 1.11 0.83 0.63 0.26 0.37
Acquired intangible assets, net 1.02 1.53 1.99 2.76 4.50
Goodwill 11.92 11.52 11.18 12.43 14.94
Long-term assets held for sale 0.33 0.00 0.00 0.00 0.00
Long-term assets 37.99% 35.51% 32.37% 33.87% 40.48%
Total assets 100.00% 100.00% 100.00% 100.00% 100.00%

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).

The analysis of asset composition over the five-year period reveals several noteworthy trends in the allocation and changes of various asset categories as a percentage of total assets.

Cash and Marketable Securities
Cash and cash equivalents as a percentage of total assets exhibit a declining trend, decreasing from 27.77% in 2019 to 21.73% in 2023. Marketable securities showed volatility, initially rising sharply from 4.93% in 2019 to 14.3% in 2020 but then declining to around 1.78% by 2023 in the short-term category. The long-term marketable securities portion remained relatively stable, fluctuating within a narrow range near 3%, ending at 3.37% in 2023.
Receivables and Inventories
Accounts receivable as a percentage of total assets increased slightly from 13% in 2019 to a peak of 14.46% in 2021, then declined to 12.11% by 2023. Inventories initially decreased slightly from 7.06% in 2019 to 6.08% in 2020 but rose notably to 9.28% in 2022 before marginally dropping to 8.89% in 2023. This pattern indicates fluctuations possibly related to operational or market conditions affecting inventory management.
Prepayments and Other Current Assets
Prepayments as a whole, including contract manufacturer and supplier prepayments, rose significantly from 6.34% in 2019 to 15.74% in 2023, with contract manufacturer and supplier prepayments being the major driver of this increase, surging from 5.15% to 14.4%. This may reflect increased advance payments or strategic supplier relationships. Other current assets showed modest growth, particularly from 0.25% in 2020 to 1.09% in 2023, with the introduction of current assets held for sale at 0.67% in 2023.
Current Assets
The total share of current assets peaked in 2021 at 67.63% but exhibited a decline thereafter to 62.01% in 2023, indicating a gradual shift in asset structure potentially towards more long-term investments or fixed assets.
Property, Plant, and Equipment (PP&E) and Long-term Assets
Property, plant, and equipment net as a percentage of total assets exhibits a recovery after an initial decline, starting at 11.49% in 2019, dropping to 10.17% in 2021, then increasing to 12.78% by 2023. Operating lease right-of-use assets remained relatively stable around 2%. Acquired intangible assets show a consistent downward trend from 4.5% to 1.02%, suggesting amortization or impairments. Goodwill declined from 14.94% in 2019 to 11.92% in 2023, indicative of asset write-downs or reduced acquisition activity. Deferred tax assets increased steadily from 2.7% to 5.04%, while other long-term assets also grew gradually. Overall, long-term assets decreased sharply in 2020 to 33.87% but rebounded to 37.99% by 2023, reflecting changes in investment or capital asset composition.

In summary, the asset structure shows a marked reduction in liquid assets as a share of total assets and a notable increase in prepayments, especially related to suppliers, indicating possible changes in operational or procurement practices. The composition shift towards increased property and deferred tax assets, alongside declining intangible assets and goodwill, points to strategic adjustments in fixed asset utilization and asset valuation. The overall dynamic reflects evolving priorities in asset management and capital allocation over the period analyzed.