Return on Equity (ROE)
since 2005
Calculation
Teradyne Inc., ROE, long-term trends, calculation
| ROE | = | 100 | × | Net income (loss)1 | ÷ | Shareholders’ equity1 | |
|---|---|---|---|---|---|---|---|
| Dec 31, 2023 | 17.77% | = | 100 | × | 448,752) | ÷ | 2,525,897) |
| Dec 31, 2022 | 29.19% | = | 100 | × | 715,501) | ÷ | 2,451,294) |
| Dec 31, 2021 | 39.59% | = | 100 | × | 1,014,589) | ÷ | 2,562,444) |
| Dec 31, 2020 | 35.53% | = | 100 | × | 784,147) | ÷ | 2,207,018) |
| Dec 31, 2019 | 31.58% | = | 100 | × | 467,468) | ÷ | 1,480,158) |
| Dec 31, 2018 | 29.68% | = | 100 | × | 451,779) | ÷ | 1,522,354) |
| Dec 31, 2017 | 13.19% | = | 100 | × | 257,692) | ÷ | 1,953,646) |
| Dec 31, 2016 | -2.37% | = | 100 | × | (43,421) | ÷ | 1,828,659) |
| Dec 31, 2015 | 10.50% | = | 100 | × | 206,477) | ÷ | 1,965,786) |
| Dec 31, 2014 | 3.91% | = | 100 | × | 81,272) | ÷ | 2,078,980) |
| Dec 31, 2013 | 8.31% | = | 100 | × | 164,947) | ÷ | 1,985,094) |
| Dec 31, 2012 | 12.21% | = | 100 | × | 217,049) | ÷ | 1,778,355) |
| Dec 30, 2011 | 24.84% | = | 100 | × | 373,809) | ÷ | 1,505,060) |
| Dec 31, 2010 | 33.84% | = | 100 | × | 379,730) | ÷ | 1,122,188) |
| Dec 31, 2009 | -20.14% | = | 100 | × | (133,837) | ÷ | 664,579) |
| Dec 31, 2008 | -56.34% | = | 100 | × | (397,834) | ÷ | 706,112) |
| Dec 31, 2007 | 6.32% | = | 100 | × | 77,711) | ÷ | 1,229,174) |
| Dec 31, 2006 | 14.60% | = | 100 | × | 198,757) | ÷ | 1,361,187) |
| Dec 31, 2005 | 7.29% | = | 100 | × | 90,648) | ÷ | 1,242,666) |
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), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-30), 10-K (reporting date: 2010-12-31), 10-K (reporting date: 2009-12-31), 10-K (reporting date: 2008-12-31), 10-K (reporting date: 2007-12-31), 10-K (reporting date: 2006-12-31), 10-K (reporting date: 2005-12-31).
1 US$ in thousands
- Net Income (Loss) Trends
- The net income exhibited significant volatility over the examined period. Between 2005 and 2007, net income fluctuated, reaching a peak in 2006 at approximately 198.8 million USD, followed by a sharp decline in 2008 and 2009, with losses recorded in both years at -397.8 million USD and -133.8 million USD respectively. This negative trend reversed starting in 2010, showing a recovery with positive net income values resuming and generally increasing through 2021, peaking at approximately 1.01 billion USD. However, the years 2022 and 2023 witnessed a decline in net income to 715.5 million USD and 448.8 million USD respectively, which may indicate emerging challenges or changing market conditions in the most recent periods.
- Shareholders’ Equity Evolution
- Shareholders’ equity also demonstrated notable fluctuations but with a generally increasing trend over the period. Beginning around 1.24 billion USD in 2005, equity declined through 2008 and 2009, reaching a low near 664.6 million USD in 2009. From 2010 onward, shareholders’ equity rebounded significantly, reaching over 2.5 billion USD in 2023. Despite some minor decreases in 2015, 2016, and 2018, the overall upward direction suggests strengthening financial foundation and value accumulation for shareholders over the long term.
- Return on Equity (ROE) Analysis
- The ROE metric reflected the volatility in net income, with marked negative returns during the financial downturn years of 2008 (-56.34%) and 2009 (-20.14%), indicating operational losses relative to shareholders' equity. After 2009, ROE showed a recovery trend, increasing annually and peaking at approximately 39.6% in 2021. This strong ROE underlines efficient utilization of equity to generate profits during this time. However, there was a decline in ROE in 2022 and 2023 to 29.2% and 17.8% respectively, which aligns with the observed reductions in net income, signaling a possible moderation in profitability or increased equity base without commensurate net income growth in recent years.
- Overall Financial Performance Insights
- The data reveals an entity that experienced financial difficulties around 2008-2009, consistent with a broader economic downturn, followed by a robust recovery period across most financial indicators. The company improved its profitability and equity value significantly from 2010 to 2021, demonstrating effective management and operational strength. However, the decline in net income and ROE in the last two years suggests caution, indicating potential emerging risks or the need for strategic adjustments to maintain previous growth and profitability levels. The increase in shareholders’ equity despite some net income declines may reflect retained earnings, capital inflows, or other changes in equity structure that are supporting the company’s financial resilience.
Comparison to Competitors
Teradyne Inc., ROE, long-term trends, comparison to competitors
| Teradyne Inc. | Advanced Micro Devices Inc. | Analog Devices Inc. | Applied Materials Inc. | Broadcom Inc. | Intel Corp. | KLA Corp. | Lam Research Corp. | Micron Technology Inc. | NVIDIA Corp. | Qualcomm Inc. | Texas Instruments Inc. | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Dec 31, 2023 | 17.77% | 1.53% | 9.32% | 41.94% | 58.70% | 1.60% | 116.01% | 54.94% | -13.22% | 19.76% | 33.51% | 38.53% |
| Dec 31, 2022 | 29.19% | 2.41% | 7.54% | 53.51% | 50.62% | 7.90% | 237.04% | 73.35% | 17.41% | 36.65% | 71.81% | 60.02% |
| Dec 31, 2021 | 39.59% | 42.18% | 3.66% | 48.08% | 26.99% | 20.83% | 61.53% | 64.85% | 13.34% | 25.64% | 90.88% | 58.27% |
| Dec 31, 2020 | 35.53% | 42.66% | 10.17% | 34.21% | 12.40% | 25.79% | 45.65% | 43.53% | 6.89% | 22.91% | 85.54% | 60.90% |
| Dec 31, 2019 | 31.58% | 12.06% | 11.64% | 32.94% | 10.92% | 27.16% | 44.21% | 46.89% | 17.59% | 44.33% | 89.35% | 56.33% |
| Dec 31, 2018 | 29.68% | 26.62% | 13.61% | 48.44% | 45.99% | 28.24% | 49.51% | 36.62% | 43.77% | 40.78% | -524.14% | 62.04% |
| Dec 31, 2017 | 13.19% | 7.04% | 7.16% | 36.73% | 8.34% | 13.91% | 69.82% | 24.90% | 27.33% | 28.91% | 8.02% | 35.62% |
| Dec 31, 2016 | -2.37% | -119.47% | 16.68% | 23.85% | -9.20% | 15.58% | 102.22% | 15.51% | -2.28% | 13.74% | 17.95% | 34.33% |
| Dec 31, 2015 | 10.50% | — | 13.74% | 18.09% | 28.94% | 18.70% | 86.88% | 12.85% | 23.57% | 14.27% | 16.78% | 30.02% |
| Dec 31, 2014 | 3.91% | -215.51% | 13.23% | 13.62% | 8.11% | 20.95% | 15.88% | 12.57% | 28.27% | 9.87% | 20.34% | 27.15% |
| Dec 31, 2013 | 8.31% | -15.26% | 14.21% | 3.61% | 19.13% | 16.51% | 15.60% | 2.54% | 13.02% | 11.65% | 18.99% | 20.01% |
| Dec 31, 2012 | 12.21% | -219.89% | 15.63% | 1.51% | 23.27% | 21.49% | 22.80% | 3.29% | -13.40% | 14.02% | 18.22% | 16.05% |
| Dec 30, 2011 | 24.84% | 30.88% | 22.85% | 21.89% | 27.52% | 28.19% | 27.77% | 29.30% | 1.97% | 7.96% | 15.81% | 20.42% |
| Dec 31, 2010 | 33.84% | 46.50% | 22.25% | 12.44% | 27.57% | 23.19% | 9.45% | 19.61% | 23.07% | -2.55% | 15.57% | 30.93% |
| Dec 31, 2009 | -20.14% | 46.91% | 9.80% | -4.30% | -4.23% | 10.48% | -23.96% | -20.79% | -39.43% | -1.25% | 7.84% | 15.12% |
| Dec 31, 2008 | -56.34% | — | 32.49% | 12.73% | — | 13.54% | 12.04% | 24.70% | -26.21% | 30.47% | 17.61% | 20.59% |
| Dec 31, 2007 | 6.32% | -113.01% | 21.25% | 21.87% | — | 16.31% | 14.88% | 58.30% | -4.13% | 22.36% | 20.86% | 26.64% |
| Dec 31, 2006 | 14.60% | -2.87% | 15.99% | 22.80% | — | 13.72% | 10.66% | 24.05% | 5.03% | 20.76% | 18.42% | 38.21% |
| Dec 31, 2005 | 7.29% | 4.94% | 11.24% | 13.55% | — | 23.95% | 15.33% | 28.06% | 3.22% | 8.52% | 19.27% | 19.47% |
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), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-30), 10-K (reporting date: 2010-12-31), 10-K (reporting date: 2009-12-31), 10-K (reporting date: 2008-12-31), 10-K (reporting date: 2007-12-31), 10-K (reporting date: 2006-12-31), 10-K (reporting date: 2005-12-31).
Comparison to Sector (Semiconductors & Semiconductor Equipment)
Teradyne Inc., ROE, long-term trends, comparison to sector (semiconductors & semiconductor equipment)
| Teradyne Inc. | Semiconductors & Semiconductor Equipment | |
|---|---|---|
| Dec 31, 2023 | 17.77% | 13.30% |
| Dec 31, 2022 | 29.19% | 22.70% |
| Dec 31, 2021 | 39.59% | 25.79% |
| Dec 31, 2020 | 35.53% | 24.53% |
| Dec 31, 2019 | 31.58% | 26.83% |
| Dec 31, 2018 | 29.68% | 33.43% |
| Dec 31, 2017 | 13.19% | 16.95% |
| Dec 31, 2016 | -2.37% | 13.42% |
| Dec 31, 2015 | 10.50% | 19.06% |
| Dec 31, 2014 | 3.91% | 19.77% |
| Dec 31, 2013 | 8.31% | 15.77% |
| Dec 31, 2012 | 12.21% | 14.95% |
| Dec 30, 2011 | 24.84% | 21.55% |
| Dec 31, 2010 | 33.84% | 20.99% |
| Dec 31, 2009 | -20.14% | 5.27% |
| Dec 31, 2008 | -56.34% | 10.02% |
| Dec 31, 2007 | 6.32% | 13.62% |
| Dec 31, 2006 | 14.60% | 16.52% |
| Dec 31, 2005 | 7.29% | 18.50% |
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), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-30), 10-K (reporting date: 2010-12-31), 10-K (reporting date: 2009-12-31), 10-K (reporting date: 2008-12-31), 10-K (reporting date: 2007-12-31), 10-K (reporting date: 2006-12-31), 10-K (reporting date: 2005-12-31).
Comparison to Industry (Information Technology)
Teradyne Inc., ROE, long-term trends, comparison to industry (information technology)
| Teradyne Inc. | Information Technology | |
|---|---|---|
| Dec 31, 2023 | 17.77% | 31.93% |
| Dec 31, 2022 | 29.19% | 39.07% |
| Dec 31, 2021 | 39.59% | 42.41% |
| Dec 31, 2020 | 35.53% | 35.69% |
| Dec 31, 2019 | 31.58% | 36.61% |
| Dec 31, 2018 | 29.68% | 30.39% |
| Dec 31, 2017 | 13.19% | 23.40% |
| Dec 31, 2016 | -2.37% | 23.36% |
| Dec 31, 2015 | 10.50% | 26.17% |
| Dec 31, 2014 | 3.91% | 25.60% |
| Dec 31, 2013 | 8.31% | 24.89% |
| Dec 31, 2012 | 12.21% | 26.24% |
| Dec 30, 2011 | 24.84% | 29.20% |
| Dec 31, 2010 | 33.84% | 27.87% |
| Dec 31, 2009 | -20.14% | 20.26% |
| Dec 31, 2008 | -56.34% | 25.64% |
| Dec 31, 2007 | 6.32% | 23.99% |
| Dec 31, 2006 | 14.60% | 22.71% |
| Dec 31, 2005 | 7.29% | 22.09% |
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), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-30), 10-K (reporting date: 2010-12-31), 10-K (reporting date: 2009-12-31), 10-K (reporting date: 2008-12-31), 10-K (reporting date: 2007-12-31), 10-K (reporting date: 2006-12-31), 10-K (reporting date: 2005-12-31).