Balance Sheet: Liabilities and Stockholders’ Equity

The balance sheet provides creditors, investors, and analysts with information on company resources (assets) and its sources of capital (its equity and liabilities). It normally also provides information about the future earnings capacity of a company assets as well as an indication of cash flows that may come from receivables and inventories.

Liabilities represents obligations of a company arising from past events, the settlement of which is expected to result in an outflow of economic benefits from the entity.

Teradyne Inc., consolidated balance sheet: liabilities and stockholders’ equity

US$ in thousands

	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Accounts payable	180,131)	139,722)	153,133)	133,663)	126,617)
Accrued employees’ compensation and withholdings	191,750)	212,266)	253,667)	220,321)	163,883)
Deferred revenue and customer advances	99,804)	148,285)	146,185)	134,662)	104,876)
Other accrued liabilities	114,712)	112,271)	124,187)	77,581)	70,871)
Current operating lease liabilities	17,522)	18,594)	19,977)	20,573)	19,476)
Contingent consideration	—)	—)	—)	—)	9,106)
Income taxes payable	48,653)	65,010)	88,789)	80,728)	44,200)
Current debt	—)	50,115)	19,182)	33,343)	—)
Current liabilities held for sale	7,379)	—)	—)	—)	—)
Current liabilities	659,951)	746,263)	805,120)	700,871)	539,029)
Retirement plans liabilities	132,090)	116,005)	151,141)	151,140)	134,471)
Long-term deferred revenue and customer advances	37,282)	45,131)	54,921)	58,359)	45,974)
Long-term contingent consideration	—)	—)	—)	7,227)	30,599)
Deferred tax liabilities	183)	3,267)	6,327)	10,821)	14,070)
Long-term other accrued liabilities	19,998)	15,981)	15,497)	19,352)	19,535)
Long-term operating lease liabilities	65,092)	64,176)	56,178)	42,073)	45,849)
Long-term income taxes payable	44,331)	59,135)	67,041)	74,930)	82,642)
Long-term debt	—)	—)	89,244)	376,768)	394,687)
Long-term liabilities held for sale	2,000)	—)	—)	—)	—)
Long-term liabilities	300,976)	303,695)	440,349)	740,670)	767,827)
Total liabilities	960,927)	1,049,958)	1,245,469)	1,441,541)	1,306,856)
Convertible common shares	—)	—)	1,512)	3,787)	—)
Mezzanine equity	—)	—)	1,512)	3,787)	—)
Common stock, $0.125 par value	19,087)	19,470)	20,281)	20,765)	20,801)
Additional paid-in capital	1,827,274)	1,755,963)	1,811,545)	1,765,323)	1,720,129)
Accumulated other comprehensive income (loss)	(26,978)	(49,868)	(5,948)	33,516)	(18,854)
Retained earnings (accumulated deficit)	706,514)	725,729)	736,566)	387,414)	(241,918)
Shareholders’ equity	2,525,897)	2,451,294)	2,562,444)	2,207,018)	1,480,158)
Total liabilities, convertible common shares and shareholders’ equity	3,486,824)	3,501,252)	3,809,425)	3,652,346)	2,787,014)

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).

Liabilities Trends

Total liabilities exhibited a peak in 2020 at 1,441,541 thousand US$, followed by a continuous decline through 2023, reaching 960,927 thousand US$. This overall reduction suggests a strategy toward lowering debt or improving financial stability.

Current liabilities increased significantly from 2019 to 2021, peaking at 805,120 thousand US$, then decreased notably through 2023 to 659,951 thousand US$. Within current liabilities, accounts payable and accrued employees’ compensation both followed a pattern of increase until 2021, with accounts payable rising sharply in 2023 to 180,131 thousand US$, while accrued compensation decreased after 2021.

Deferred revenue and customer advances rose steadily until 2022 but sharply decreased in 2023, indicating a possible reduction in customer prepayments or deferred sales recognition.

Current operating lease liabilities have slightly declined over the period, from 19,476 thousand US$ in 2019 to 17,522 thousand US$ in 2023, reflecting possible lease terminations or renegotiations.

Income taxes payable surged substantially in 2020 but then steadily decreased each subsequent year, suggesting varying tax obligations or liabilities management. Current debt displayed volatility, appearing significantly only in 2020, 2021, and 2022, hinting at changing financing instruments or repayments.

Long-term liabilities fell sharply from 767,827 thousand US$ in 2019 to 300,976 thousand US$ in 2023, reflecting considerable repayments or reclassification to current liabilities or equity. Key contributors to this decline include long-term debt, which dropped dramatically from 394,687 thousand US$ in 2019 to zero or not reported in 2023.

Long-term deferred revenue and customer advances consistently declined, reinforcing the trend observed in current deferred revenues.

Deferred tax liabilities decreased steadily over the years, indicating reduced deferred tax obligations or changes in tax positions.

Operating lease liabilities show a slight upward trend in long-term obligations from 45,849 thousand US$ in 2019 to 65,092 thousand US$ in 2023, which contrasts with the declining current lease liabilities.

Overall, liabilities have decreased in total, with notable reductions in long-term debt and deferred tax liabilities, while some current liabilities like accounts payable and accrued compensation show fluctuations.

Equity Trends

Shareholders’ equity increased significantly from 1,480,158 thousand US$ in 2019 to peak at 2,562,444 thousand US$ in 2021, followed by a modest decline and stabilization near 2,525,897 thousand US$ in 2023. This growth reflects accumulated earnings and capital contributions over the years.

Retained earnings showed remarkable improvement from a negative balance of -241,918 thousand US$ in 2019 to a positive 706,514 thousand US$ in 2023, indicating sustained profitability or favorable adjustments.

Additional paid-in capital rose steadily across the periods, signaling ongoing capital infusions or stock-based transactions contributing to equity growth.

Accumulated other comprehensive income (loss) has fluctuated considerably, from negative 18,854 thousand US$ in 2019 to a strong positive of 33,516 thousand US$ in 2020, then declining back into negative territory by 2023, suggesting volatility in unrealized gains/losses or foreign currency translation impacts.

Common stock par value declined gradually over the years, indicating possible share repurchases, retirements, or structural equity changes.

Convertible common shares and mezzanine equity were present in 2020 and 2021 but not reported in other periods, suggesting temporary financing arrangements or reclassifications.

Overall Financial Position Insights

The financial data indicates a general trend toward deleveraging, with total liabilities decreasing steadily after peaking in 2020. The company appears to be managing debt repayment actively, as seen by the large reduction in long-term debt and overall liabilities.

Equity growth corresponds with improved retained earnings, reflecting operational profitability or capital management positively impacting net worth.

The decline in deferred revenue and customer advances in recent periods may warrant attention to revenue recognition patterns or changes in customer contracts.

The combination of decreasing liabilities and increasing equity suggests an improvement in financial stability and potentially stronger creditworthiness over the period analyzed.

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Teradyne Inc. (NASDAQ:TER)

Balance Sheet: Liabilities and Stockholders’ Equity