Name: Teradyne Inc. (NASDAQ:TER) | Liabilities and Stockholders’ Equity
Creator: Stock Analysis on Net

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.

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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).

The financial position of the company exhibits a significant transition toward a more conservative capital structure and a strengthened equity base between 2019 and 2023. Total liabilities decreased from 1.31 billion US dollars in 2019 to approximately 961 million US dollars in 2023, while shareholders' equity grew from 1.48 billion US dollars to 2.53 billion US dollars over the same period.

Debt Deleveraging and Liability Management: A profound reduction in long-term debt is observed, falling from 394.7 million US dollars in 2019 to zero by the end of 2022 and 2023. This deleveraging trend contributed significantly to the overall decline in long-term liabilities, which dropped from 767.8 million US dollars in 2019 to 301 million US dollars in 2023. Current liabilities also peaked in 2021 at 805.1 million US dollars before moderating to 660 million US dollars in 2023.
Equity Growth and Profitability Indicators: The most notable shift in the balance sheet is the transformation of retained earnings. The company moved from an accumulated deficit of 241.9 million US dollars in 2019 to a substantial surplus of 706.5 million US dollars by 2023. This trajectory indicates strong net income generation and retained profitability over the five-year horizon, which served as the primary driver for the increase in total shareholders' equity.
Working Capital and Operational Obligations: Current operational liabilities show mixed trends. Accounts payable increased to 180.1 million US dollars in 2023, the highest level in the period analyzed. Conversely, deferred revenue and customer advances showed a downward trend in the final year, falling to 99.8 million US dollars from a peak of 148.3 million US dollars in 2022. Accrued employee compensation and withholdings remained relatively stable after an initial increase between 2019 and 2021.
Long-term Obligations and Other Liabilities: While long-term debt was eliminated, long-term operating lease liabilities showed a steady increase, rising from 45.8 million US dollars in 2019 to 65.1 million US dollars in 2023. Additionally, long-term income taxes payable decreased consistently throughout the period, falling from 82.6 million US dollars to 44.3 million US dollars.

Overall, the data reveals a strategic shift away from debt-based financing toward equity-based stability. The elimination of long-term debt, combined with the substantial accumulation of retained earnings, indicates a high degree of financial resilience and a reduced risk profile regarding solvency.

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