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
The Return on Equity (ROE) for the period between 2005 and 2023 is characterized by significant volatility in the first decade, followed by a period of substantial growth and a recent trend of moderation. The ROE shifted from single-digit percentages in the mid-2000s to extreme negatives during the 2008 financial crisis, before reaching a peak in 2021.
- Period of High Volatility (2005–2016)
- Financial performance during this interval was marked by instability. A sharp decline occurred between 2007 and 2009, with ROE dropping from 6.32% to a low of -56.34% in 2008, coinciding with a significant net loss of US$ 397.8 million and a reduction in shareholders' equity. A rapid recovery followed, with ROE peaking at 33.84% in 2010. However, the subsequent years showed a downward trajectory, reaching a low of -2.37% in 2016.
- Expansion and Peak Performance (2017–2021)
- A sustained upward trend in profitability is observed starting in 2017. ROE grew consistently from 13.19% in 2017 to a historical peak of 39.59% in 2021. This growth was driven by a substantial increase in net income, which rose from US$ 257.7 million in 2017 to over US$ 1 billion in 2021, outpacing the growth in shareholders' equity.
- Recent Performance Moderation (2022–2023)
- Following the 2021 peak, a downward trend in ROE has emerged. The ratio decreased to 29.19% in 2022 and further to 17.77% in 2023. This decline is attributed to a reduction in net income, which fell to US$ 448.8 million in 2023, while shareholders' equity remained relatively stable at US$ 2.5 billion.
- Equity and Income Correlation
- Shareholders' equity has generally trended upward over the long term, increasing from US$ 1.24 billion in 2005 to US$ 2.53 billion by 2023. The fluctuations in ROE are primarily driven by volatility in net income rather than drastic changes in the equity base, indicating that earnings variability is the primary catalyst for the changing return profiles.
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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. | Marvell Technology Inc. | 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% | -1.05% | -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% | -2.68% | 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% | -3.29% | 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% | 18.26% | 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% | -2.45% | 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% | 12.58% | 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% | 0.53% | 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% | -19.60% | -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% | 8.46% | 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% | 6.74% | 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% | 6.84% | 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% | 12.27% | -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% | 16.37% | 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% | 8.00% | 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% | 3.85% | -39.43% | -1.25% | 7.84% | 15.12% |
| Dec 31, 2008 | -56.34% | — | 32.49% | 12.73% | — | 13.54% | 12.04% | 24.70% | -3.35% | -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% | -0.37% | -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% | 10.88% | 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% | 5.67% | 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% | 12.69% |
| Dec 31, 2022 | 29.19% | 21.59% |
| Dec 31, 2021 | 39.59% | 24.91% |
| Dec 31, 2020 | 35.53% | 24.28% |
| Dec 31, 2019 | 31.58% | 25.76% |
| Dec 31, 2018 | 29.68% | 32.95% |
| Dec 31, 2017 | 13.19% | 16.60% |
| Dec 31, 2016 | -2.37% | 12.61% |
| Dec 31, 2015 | 10.50% | 18.69% |
| Dec 31, 2014 | 3.91% | 19.37% |
| Dec 31, 2013 | 8.31% | 15.49% |
| Dec 31, 2012 | 12.21% | 14.85% |
| Dec 30, 2011 | 24.84% | 21.32% |
| Dec 31, 2010 | 33.84% | 20.49% |
| Dec 31, 2009 | -20.14% | 5.22% |
| Dec 31, 2008 | -56.34% | 9.53% |
| Dec 31, 2007 | 6.32% | 13.17% |
| Dec 31, 2006 | 14.60% | 16.33% |
| Dec 31, 2005 | 7.29% | 18.14% |
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% | 31.26% |
| Dec 31, 2022 | 29.19% | 38.03% |
| Dec 31, 2021 | 39.59% | 41.64% |
| Dec 31, 2020 | 35.53% | 35.38% |
| Dec 31, 2019 | 31.58% | 35.94% |
| Dec 31, 2018 | 29.68% | 30.23% |
| Dec 31, 2017 | 13.19% | 23.19% |
| Dec 31, 2016 | -2.37% | 23.00% |
| Dec 31, 2015 | 10.50% | 25.97% |
| Dec 31, 2014 | 3.91% | 25.43% |
| Dec 31, 2013 | 8.31% | 24.73% |
| Dec 31, 2012 | 12.21% | 26.09% |
| Dec 30, 2011 | 24.84% | 29.03% |
| Dec 31, 2010 | 33.84% | 27.62% |
| Dec 31, 2009 | -20.14% | 20.05% |
| Dec 31, 2008 | -56.34% | 25.24% |
| Dec 31, 2007 | 6.32% | 23.67% |
| Dec 31, 2006 | 14.60% | 22.58% |
| Dec 31, 2005 | 7.29% | 21.92% |
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).