Analysis of Long-term (Investment) Activity Ratios
Quarterly Data
Activity ratios measure how efficiently a company performs day-to-day tasks, such us the collection of receivables and management of inventory.
Long-term Activity Ratios (Summary)
Teradyne Inc., long-term (investment) activity ratios (quarterly data)
Based on: 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-10-01), 10-Q (reporting date: 2023-07-02), 10-Q (reporting date: 2023-04-02), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-10-02), 10-Q (reporting date: 2022-07-03), 10-Q (reporting date: 2022-04-03), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-10-03), 10-Q (reporting date: 2021-07-04), 10-Q (reporting date: 2021-04-04), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-27), 10-Q (reporting date: 2020-06-28), 10-Q (reporting date: 2020-03-29), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-29), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31).
The analysis of the quarterly financial ratios reveals several notable trends over the observed periods.
- Net fixed asset turnover
- The ratio shows a strong upward trend starting from the March 2020 quarter, increasing from 7.17 to a peak of 9.56 in the October 2021 quarter. This indicates improved efficiency in utilizing fixed assets to generate sales during this period. However, following this peak, there is a consistent decline through to March 2024, where the ratio falls to 5.81. This downward trend suggests a reduction in asset utilization efficiency or possibly an increase in fixed assets without commensurate sales growth in the latter periods.
- Net fixed asset turnover (including operating lease, right-of-use asset)
- This adjusted ratio mirrors the general pattern of the net fixed asset turnover. It rises steadily from March 2020, reaching its highest value of 8.12 in April 2022, slightly lagging the peak seen in the basic net fixed asset turnover ratio. After April 2022, the ratio declines, ending at 5.00 in March 2024. The similar trajectory confirms the overall trend of decreasing efficiency when incorporating leased assets, reinforcing the observation of reduced asset productivity in recent quarters.
- Total asset turnover
- Total asset turnover starts around 0.82 in March 2020 with fluctuations between 0.85 and 1.02 over the next few quarters, peaking at 1.02 in October 2021, indicating a period of improved asset utilization across the company’s entire asset base. Following this, there is a moderate decline, falling to approximately 0.78 by March 2024. Although the decline is less steep compared to fixed asset turnover, it similarly suggests a diminishing rate at which assets are generating revenue toward the end of the period.
- Equity turnover
- Equity turnover exhibits a downward trend starting from a high of 1.62 in June 2019. The ratio gradually decreases to 1.04 by March 2024. This consistent decline could indicate reduced efficiency in using shareholders’ equity to generate sales, potentially reflecting increased equity levels not matched by proportional revenue growth, or a shift in capital structure and operational leverage.
Net Fixed Asset Turnover
Teradyne Inc., net fixed asset turnover calculation (quarterly data)
| Mar 31, 2024 | Dec 31, 2023 | Oct 1, 2023 | Jul 2, 2023 | Apr 2, 2023 | Dec 31, 2022 | Oct 2, 2022 | Jul 3, 2022 | Apr 3, 2022 | Dec 31, 2021 | Oct 3, 2021 | Jul 4, 2021 | Apr 4, 2021 | Dec 31, 2020 | Sep 27, 2020 | Jun 28, 2020 | Mar 29, 2020 | Dec 31, 2019 | Sep 29, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||||||||||||||||||||||||
| Revenues | 599,819) | 670,600) | 703,732) | 684,437) | 617,529) | 731,836) | 827,073) | 840,766) | 755,370) | 885,046) | 950,501) | 1,085,728) | 781,606) | 758,969) | 819,484) | 838,661) | 704,355) | 654,650) | 582,038) | 564,178) | 494,099) | |||||||
| Property, plant and equipment, net | 457,248) | 445,492) | 436,449) | 437,077) | 432,381) | 418,683) | 415,181) | 411,263) | 399,485) | 387,240) | 390,545) | 395,395) | 402,465) | 394,800) | 386,170) | 353,595) | 332,241) | 320,216) | 307,567) | 295,895) | 283,300) | |||||||
| Long-term Activity Ratio | ||||||||||||||||||||||||||||
| Net fixed asset turnover1 | 5.81 | 6.01 | 6.27 | 6.55 | 6.98 | 7.54 | 7.97 | 8.34 | 9.20 | 9.56 | 9.16 | 8.71 | 7.95 | 7.91 | 7.81 | 7.86 | 7.54 | 7.17 | — | — | — | |||||||
| Benchmarks | ||||||||||||||||||||||||||||
| Net Fixed Asset Turnover, Competitors2 | ||||||||||||||||||||||||||||
| Advanced Micro Devices Inc. | 14.04 | 14.27 | 14.12 | 14.20 | 15.38 | 15.60 | 15.36 | 14.97 | 13.43 | 23.41 | 20.71 | 19.88 | 16.77 | 15.23 | — | — | — | — | — | — | — | |||||||
| Analog Devices Inc. | 3.52 | 3.82 | 4.39 | 4.69 | 4.98 | 5.00 | 5.09 | 4.66 | 4.14 | 3.70 | 5.54 | 5.34 | 5.19 | 5.00 | 4.87 | 4.66 | 4.77 | 4.91 | — | — | — | |||||||
| Applied Materials Inc. | 9.37 | 9.74 | 10.19 | 10.41 | 10.53 | 11.18 | 11.47 | 11.99 | 12.25 | 11.93 | 11.92 | 11.21 | 11.11 | 10.72 | 10.63 | 10.06 | 9.66 | 9.55 | — | — | — | |||||||
| Broadcom Inc. | 14.60 | 16.63 | 16.26 | 15.86 | 15.63 | 14.94 | 14.08 | 13.26 | 12.38 | 11.69 | 11.19 | 10.58 | 9.89 | 9.52 | 9.04 | 8.74 | 8.66 | 8.81 | — | — | — | |||||||
| Intel Corp. | 0.55 | 0.56 | 0.57 | 0.59 | 0.66 | 0.78 | 0.92 | 1.02 | 1.16 | 1.25 | 1.31 | 1.33 | 1.36 | 1.38 | — | — | — | — | — | — | — | |||||||
| KLA Corp. | 9.59 | 10.17 | 10.80 | 10.87 | 10.79 | 10.84 | 10.69 | 11.39 | 10.68 | 10.44 | 10.27 | 10.22 | 10.56 | 11.17 | 11.26 | 10.77 | 10.29 | 10.18 | — | — | — | |||||||
| Lam Research Corp. | 7.50 | 9.39 | 10.16 | 10.22 | 10.47 | 10.46 | 10.72 | 10.99 | 11.48 | 11.22 | 10.37 | 9.87 | 9.75 | 9.37 | 9.17 | 9.12 | 9.21 | 9.12 | — | — | — | |||||||
| Micron Technology Inc. | 0.43 | 0.41 | 0.47 | 0.59 | 0.69 | 0.80 | 0.88 | 0.86 | 0.84 | 0.83 | 0.79 | 0.74 | 0.68 | 0.69 | 0.67 | 0.66 | 0.70 | 0.83 | — | — | — | |||||||
| NVIDIA Corp. | 6.92 | 7.09 | 7.57 | 9.20 | 10.13 | 9.69 | 9.67 | 9.26 | 8.49 | 7.76 | 7.18 | 6.65 | 6.87 | 6.52 | — | — | — | — | — | — | — | |||||||
| Qualcomm Inc. | 7.40 | 7.10 | 7.40 | 7.78 | 8.24 | 8.55 | 8.36 | 8.02 | 7.63 | 7.36 | 7.36 | 7.03 | 6.62 | 6.34 | 5.74 | 7.37 | 7.73 | 7.88 | — | — | — | |||||||
| Texas Instruments Inc. | 1.61 | 1.75 | 1.94 | 2.21 | 2.54 | 2.91 | 3.11 | 3.30 | 3.49 | 3.57 | 4.37 | 4.56 | 4.49 | 4.42 | — | — | — | — | — | — | — | |||||||
Based on: 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-10-01), 10-Q (reporting date: 2023-07-02), 10-Q (reporting date: 2023-04-02), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-10-02), 10-Q (reporting date: 2022-07-03), 10-Q (reporting date: 2022-04-03), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-10-03), 10-Q (reporting date: 2021-07-04), 10-Q (reporting date: 2021-04-04), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-27), 10-Q (reporting date: 2020-06-28), 10-Q (reporting date: 2020-03-29), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-29), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31).
1 Q1 2024 Calculation
Net fixed asset turnover
= (RevenuesQ1 2024
+ RevenuesQ4 2023
+ RevenuesQ3 2023
+ RevenuesQ2 2023)
÷ Property, plant and equipment, net
= (599,819 + 670,600 + 703,732 + 684,437)
÷ 457,248 = 5.81
2 Click competitor name to see calculations.
The financial data presents a series of notable trends and fluctuations across various quarters. Revenues exhibit a general pattern of growth interspersed with periodic declines. From March 2019 to June 2021, revenues increased significantly, peaking at over one billion US dollars in the second quarter of 2021. Following this peak, a downward trend is evident, with revenues decreasing steadily through to March 2024, reaching just under 600 million US dollars.
Property, plant, and equipment (PP&E), net shows a consistent upward trajectory throughout the entire period. The net value of fixed assets rises steadily from approximately 283 million US dollars in early 2019 to over 457 million US dollars by the first quarter of 2024. This steady increase in PP&E suggests ongoing investments in fixed assets or accumulation of property and equipment over time.
The net fixed asset turnover ratio, which measures efficiency in using fixed assets to generate revenue, is available from the fourth quarter of 2019 onward. It initially shows an increasing trend from about 7.17 to a peak near 9.56 in the third quarter of 2021. This indicates improving efficiency in revenue generation relative to the fixed asset base during that period. However, starting from late 2021, the ratio declines consistently, falling below 6.0 by the first quarter of 2024. This decline implies decreasing efficiency in utilizing fixed assets to produce revenue, potentially reflecting the reduced revenue figures combined with the continuous increase in fixed assets.
- Revenues
- Show growth from early 2019 through mid-2021, peaking at over one billion US dollars, followed by a downtrend through early 2024.
- Property, Plant, and Equipment, Net
- Exhibits steady growth, increasing by approximately 61% from early 2019 to early 2024, indicating ongoing capital investments or asset accumulation.
- Net Fixed Asset Turnover Ratio
- Increased from late 2019 to mid-2021, reaching a maximum near 9.56, signaling improved fixed asset efficiency; subsequently declined notably through early 2024, suggesting reduced utilization effectiveness.
Overall, the data reflects a phase of growth and increasing asset efficiency followed by a period marked by declining revenue and reduced efficiency in the use of fixed assets, despite rising investment in property, plant, and equipment. Continuous asset accumulation coupled with falling revenues and declining asset turnover might point to potential operational or market challenges affecting utilization rates.
Net Fixed Asset Turnover (including Operating Lease, Right-of-Use Asset)
Teradyne Inc., net fixed asset turnover (including operating lease, right-of-use asset) calculation (quarterly data)
| Mar 31, 2024 | Dec 31, 2023 | Oct 1, 2023 | Jul 2, 2023 | Apr 2, 2023 | Dec 31, 2022 | Oct 2, 2022 | Jul 3, 2022 | Apr 3, 2022 | Dec 31, 2021 | Oct 3, 2021 | Jul 4, 2021 | Apr 4, 2021 | Dec 31, 2020 | Sep 27, 2020 | Jun 28, 2020 | Mar 29, 2020 | Dec 31, 2019 | Sep 29, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||||||||||||||||||||||||
| Revenues | 599,819) | 670,600) | 703,732) | 684,437) | 617,529) | 731,836) | 827,073) | 840,766) | 755,370) | 885,046) | 950,501) | 1,085,728) | 781,606) | 758,969) | 819,484) | 838,661) | 704,355) | 654,650) | 582,038) | 564,178) | 494,099) | |||||||
| Property, plant and equipment, net | 457,248) | 445,492) | 436,449) | 437,077) | 432,381) | 418,683) | 415,181) | 411,263) | 399,485) | 387,240) | 390,545) | 395,395) | 402,465) | 394,800) | 386,170) | 353,595) | 332,241) | 320,216) | 307,567) | 295,895) | 283,300) | |||||||
| Operating lease right-of-use assets, net | 74,625) | 73,417) | 78,978) | 75,889) | 74,939) | 73,734) | 61,430) | 66,661) | 67,718) | 68,807) | 61,608) | 61,849) | 51,516) | 54,569) | 54,724) | 56,172) | 58,808) | 57,539) | 57,595) | 56,315) | 50,733) | |||||||
| Property, plant and equipment, net (including operating lease, right-of-use asset) | 531,873) | 518,909) | 515,427) | 512,966) | 507,320) | 492,417) | 476,611) | 477,924) | 467,203) | 456,047) | 452,153) | 457,244) | 453,981) | 449,369) | 440,894) | 409,767) | 391,049) | 377,755) | 365,162) | 352,210) | 334,033) | |||||||
| Long-term Activity Ratio | ||||||||||||||||||||||||||||
| Net fixed asset turnover (including operating lease, right-of-use asset)1 | 5.00 | 5.16 | 5.31 | 5.58 | 5.95 | 6.41 | 6.94 | 7.18 | 7.87 | 8.12 | 7.91 | 7.54 | 7.05 | 6.95 | 6.84 | 6.78 | 6.41 | 6.08 | — | — | — | |||||||
| Benchmarks | ||||||||||||||||||||||||||||
| Net Fixed Asset Turnover (including Operating Lease, Right-of-Use Asset), Competitors2 | ||||||||||||||||||||||||||||
| Micron Technology Inc. | 0.42 | 0.40 | 0.46 | 0.58 | 0.68 | 0.78 | 0.87 | 0.85 | 0.83 | 0.82 | 0.78 | 0.72 | 0.67 | 0.68 | 0.66 | 0.65 | 0.69 | 0.83 | — | — | — | |||||||
| NVIDIA Corp. | 5.35 | 5.57 | 6.08 | 7.28 | 7.83 | 7.46 | 7.27 | 6.92 | 6.43 | 5.84 | 5.39 | 4.90 | 5.10 | 4.76 | — | — | — | — | — | — | — | |||||||
Based on: 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-10-01), 10-Q (reporting date: 2023-07-02), 10-Q (reporting date: 2023-04-02), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-10-02), 10-Q (reporting date: 2022-07-03), 10-Q (reporting date: 2022-04-03), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-10-03), 10-Q (reporting date: 2021-07-04), 10-Q (reporting date: 2021-04-04), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-27), 10-Q (reporting date: 2020-06-28), 10-Q (reporting date: 2020-03-29), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-29), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31).
1 Q1 2024 Calculation
Net fixed asset turnover (including operating lease, right-of-use asset)
= (RevenuesQ1 2024
+ RevenuesQ4 2023
+ RevenuesQ3 2023
+ RevenuesQ2 2023)
÷ Property, plant and equipment, net (including operating lease, right-of-use asset)
= (599,819 + 670,600 + 703,732 + 684,437)
÷ 531,873 = 5.00
2 Click competitor name to see calculations.
- Revenue Trends
- Revenues demonstrated notable growth from early 2019 through mid-2021, increasing from approximately $494 million in the first quarter of 2019 to a peak of about $1.09 billion by the second quarter of 2021. This reflects a strong expansion phase. Following this peak, revenues exhibited a downward trajectory with fluctuations, descending to roughly $600 million by the first quarter of 2024. The decline post-2021 suggests a contraction or correction phase after a period of rapid growth.
- Property, Plant and Equipment, Net
- The net value of property, plant, and equipment, inclusive of operating lease right-of-use assets, showed a consistent upward trend over the entire period. Starting at approximately $334 million in the first quarter of 2019, the balance grew steadily to around $532 million by the first quarter of 2024. This steady increase indicates ongoing investment in long-term assets, reflecting a commitment to capacity expansion or modernization.
- Net Fixed Asset Turnover Ratio
- The net fixed asset turnover ratio, which measures revenue generated per dollar of fixed assets, revealed a rising trend reaching its highest levels between 2020 and early 2022. It increased from 6.08 in the third quarter of 2019 to a peak of 8.12 in the first quarter of 2022, indicating more efficient use of fixed assets during that period. However, beginning in 2022, the ratio gradually declined, falling to 5 by the first quarter of 2024. This decrease suggests that asset utilization efficiency has diminished despite the continued growth in fixed assets, corresponding with the observed receding revenue figures during the same timeframe.
- Overall Insights
- The data collectively depict a company that expanded its asset base steadily while experiencing robust revenue growth until mid-2021. The subsequent decline in revenues alongside a falling fixed asset turnover ratio indicates that the company faced challenges in maintaining asset productivity amid a softer sales environment. The continuous rise in fixed assets combined with decreasing asset turnover could point to overcapacity or underutilization concerns. Strategic assessment regarding asset deployment and revenue generation effectiveness may be warranted given these trends.
Total Asset Turnover
Teradyne Inc., total asset turnover calculation (quarterly data)
| Mar 31, 2024 | Dec 31, 2023 | Oct 1, 2023 | Jul 2, 2023 | Apr 2, 2023 | Dec 31, 2022 | Oct 2, 2022 | Jul 3, 2022 | Apr 3, 2022 | Dec 31, 2021 | Oct 3, 2021 | Jul 4, 2021 | Apr 4, 2021 | Dec 31, 2020 | Sep 27, 2020 | Jun 28, 2020 | Mar 29, 2020 | Dec 31, 2019 | Sep 29, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||||||||||||||||||||||||
| Revenues | 599,819) | 670,600) | 703,732) | 684,437) | 617,529) | 731,836) | 827,073) | 840,766) | 755,370) | 885,046) | 950,501) | 1,085,728) | 781,606) | 758,969) | 819,484) | 838,661) | 704,355) | 654,650) | 582,038) | 564,178) | 494,099) | |||||||
| Total assets | 3,410,720) | 3,486,824) | 3,370,655) | 3,394,896) | 3,383,407) | 3,501,252) | 3,319,906) | 3,488,426) | 3,609,154) | 3,809,425) | 3,762,182) | 4,000,922) | 3,719,717) | 3,652,346) | 3,436,512) | 3,249,189) | 2,820,388) | 2,787,014) | 2,698,791) | 2,671,514) | 2,616,643) | |||||||
| Long-term Activity Ratio | ||||||||||||||||||||||||||||
| Total asset turnover1 | 0.78 | 0.77 | 0.81 | 0.84 | 0.89 | 0.90 | 1.00 | 0.98 | 1.02 | 0.97 | 0.95 | 0.86 | 0.86 | 0.85 | 0.88 | 0.86 | 0.89 | 0.82 | — | — | — | |||||||
| Benchmarks | ||||||||||||||||||||||||||||
| Total Asset Turnover, Competitors2 | ||||||||||||||||||||||||||||
| Advanced Micro Devices Inc. | 0.34 | 0.33 | 0.33 | 0.32 | 0.34 | 0.35 | 0.34 | 0.32 | 0.28 | 1.32 | 1.33 | 1.25 | 1.14 | 1.09 | — | — | — | — | — | — | — | |||||||
| Analog Devices Inc. | 0.24 | 0.25 | 0.26 | 0.26 | 0.25 | 0.24 | 0.22 | 0.19 | 0.16 | 0.14 | 0.30 | 0.29 | 0.27 | 0.26 | 0.26 | 0.26 | 0.27 | 0.28 | — | — | — | |||||||
| Applied Materials Inc. | 0.84 | 0.86 | 0.87 | 0.92 | 0.94 | 0.96 | 0.96 | 0.98 | 0.95 | 0.89 | 0.88 | 0.82 | 0.78 | 0.77 | 0.77 | 0.71 | 0.76 | 0.77 | — | — | — | |||||||
| Broadcom Inc. | 0.22 | 0.49 | 0.50 | 0.49 | 0.47 | 0.45 | 0.44 | 0.42 | 0.39 | 0.36 | 0.35 | 0.34 | 0.32 | 0.31 | 0.29 | 0.28 | 0.28 | 0.33 | — | — | — | |||||||
| Intel Corp. | 0.29 | 0.28 | 0.28 | 0.29 | 0.30 | 0.35 | 0.40 | 0.43 | 0.44 | 0.47 | 0.47 | 0.50 | 0.52 | 0.51 | — | — | — | — | — | — | — | |||||||
| KLA Corp. | 0.72 | 0.75 | 0.78 | 0.76 | 0.75 | 0.73 | 0.72 | 0.70 | 0.67 | 0.67 | 0.65 | 0.62 | 0.64 | 0.63 | 0.63 | 0.57 | 0.53 | 0.51 | — | — | — | |||||||
| Lam Research Corp. | 0.85 | 0.93 | 0.98 | 0.99 | 0.96 | 1.00 | 1.01 | 0.99 | 1.01 | 0.92 | 0.87 | 0.78 | 0.73 | 0.69 | 0.74 | 0.80 | 0.77 | 0.80 | — | — | — | |||||||
| Micron Technology Inc. | 0.25 | 0.24 | 0.28 | 0.35 | 0.40 | 0.46 | 0.50 | 0.49 | 0.48 | 0.47 | 0.46 | 0.43 | 0.41 | 0.40 | 0.39 | 0.39 | 0.42 | 0.48 | — | — | — | |||||||
| NVIDIA Corp. | 0.58 | 0.65 | 0.71 | 0.68 | 0.65 | 0.61 | 0.60 | 0.57 | 0.63 | 0.58 | 0.55 | 0.52 | 0.51 | 0.63 | — | — | — | — | — | — | — | |||||||
| Qualcomm Inc. | 0.70 | 0.70 | 0.79 | 0.85 | 0.86 | 0.90 | 0.90 | 0.89 | 0.84 | 0.81 | 0.84 | 0.79 | 0.71 | 0.66 | 0.62 | 0.77 | 0.74 | 0.74 | — | — | — | |||||||
| Texas Instruments Inc. | 0.48 | 0.54 | 0.57 | 0.61 | 0.67 | 0.74 | 0.77 | 0.79 | 0.75 | 0.74 | 0.76 | 0.81 | 0.79 | 0.75 | — | — | — | — | — | — | — | |||||||
Based on: 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-10-01), 10-Q (reporting date: 2023-07-02), 10-Q (reporting date: 2023-04-02), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-10-02), 10-Q (reporting date: 2022-07-03), 10-Q (reporting date: 2022-04-03), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-10-03), 10-Q (reporting date: 2021-07-04), 10-Q (reporting date: 2021-04-04), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-27), 10-Q (reporting date: 2020-06-28), 10-Q (reporting date: 2020-03-29), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-29), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31).
1 Q1 2024 Calculation
Total asset turnover
= (RevenuesQ1 2024
+ RevenuesQ4 2023
+ RevenuesQ3 2023
+ RevenuesQ2 2023)
÷ Total assets
= (599,819 + 670,600 + 703,732 + 684,437)
÷ 3,410,720 = 0.78
2 Click competitor name to see calculations.
The financial data over the presented periods reveal several notable trends and shifts in key performance indicators.
- Revenues
- Revenues show an overall fluctuating pattern with a general decline in recent quarters. Starting at approximately 494 million USD in the first quarter of 2019, revenues rose steadily, peaking above 1 billion USD in the second quarter of 2021. After this peak, there is a clear downward trajectory through 2023 and into early 2024, where revenues declined to just under 600 million USD by the first quarter of 2024. This suggests a period of strong growth followed by contraction or challenges impacting sales performance or market demand.
- Total Assets
- Total assets exhibit a steady upward trend from about 2.62 billion USD at the beginning of 2019 to over 4 billion USD in mid-2021. After reaching this peak, total assets decreased until early 2023 but then demonstrated minor fluctuations and relative stability around the 3.4 billion USD mark by the first quarter of 2024. The initial increase could be indicative of investment in capacity expansion or acquisition of resources, followed by consolidation or asset optimization in later periods.
- Total Asset Turnover
- Total asset turnover ratios, available from the first quarter of 2020 onward, indicate the efficiency of asset usage in generating revenue. The ratio started below 0.9 in early 2020, increased steadily to surpass 1.0 in mid-2022, pointing to improved efficiency as assets generated more revenue. However, from late 2022 through early 2024, the turnover ratio declined steadily to around 0.78, implying decreased asset utilization effectiveness in the most recent periods. This downturn parallels the decline in revenues and suggests that despite relatively stable assets, their productivity in revenue generation has diminished.
In summary, the data reflect a phase of growth in revenues and asset base through mid-2021, followed by a notable decline in revenues coupled with a reduced asset turnover ratio, indicating challenges in maintaining prior efficiency and growth levels. The stable to slightly declining total asset figures in recent periods may reflect strategic responses to market conditions or internal adjustments following the expansion phase.
Equity Turnover
Teradyne Inc., equity turnover calculation (quarterly data)
| Mar 31, 2024 | Dec 31, 2023 | Oct 1, 2023 | Jul 2, 2023 | Apr 2, 2023 | Dec 31, 2022 | Oct 2, 2022 | Jul 3, 2022 | Apr 3, 2022 | Dec 31, 2021 | Oct 3, 2021 | Jul 4, 2021 | Apr 4, 2021 | Dec 31, 2020 | Sep 27, 2020 | Jun 28, 2020 | Mar 29, 2020 | Dec 31, 2019 | Sep 29, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||||||||||||||||||||||||
| Revenues | 599,819) | 670,600) | 703,732) | 684,437) | 617,529) | 731,836) | 827,073) | 840,766) | 755,370) | 885,046) | 950,501) | 1,085,728) | 781,606) | 758,969) | 819,484) | 838,661) | 704,355) | 654,650) | 582,038) | 564,178) | 494,099) | |||||||
| Shareholders’ equity | 2,557,829) | 2,525,897) | 2,441,300) | 2,434,883) | 2,449,462) | 2,451,294) | 2,254,125) | 2,298,596) | 2,474,532) | 2,562,444) | 2,537,493) | 2,493,256) | 2,324,553) | 2,207,018) | 1,993,544) | 1,744,551) | 1,550,673) | 1,480,158) | 1,482,635) | 1,479,412) | 1,470,228) | |||||||
| Long-term Activity Ratio | ||||||||||||||||||||||||||||
| Equity turnover1 | 1.04 | 1.06 | 1.12 | 1.17 | 1.23 | 1.29 | 1.47 | 1.49 | 1.49 | 1.45 | 1.41 | 1.38 | 1.38 | 1.41 | 1.51 | 1.59 | 1.62 | 1.55 | — | — | — | |||||||
| Benchmarks | ||||||||||||||||||||||||||||
| Equity Turnover, Competitors2 | ||||||||||||||||||||||||||||
| Advanced Micro Devices Inc. | 0.41 | 0.41 | 0.40 | 0.40 | 0.42 | 0.43 | 0.42 | 0.39 | 0.34 | 2.19 | 2.08 | 1.89 | 1.76 | 1.67 | — | — | — | — | — | — | — | |||||||
| Analog Devices Inc. | 0.33 | 0.35 | 0.36 | 0.36 | 0.34 | 0.33 | 0.30 | 0.26 | 0.23 | 0.19 | 0.53 | 0.51 | 0.48 | 0.47 | 0.47 | 0.48 | 0.49 | 0.51 | — | — | — | |||||||
| Applied Materials Inc. | 1.52 | 1.62 | 1.76 | 1.89 | 1.96 | 2.11 | 2.08 | 2.14 | 2.03 | 1.88 | 1.79 | 1.65 | 1.59 | 1.63 | 1.70 | 1.71 | 1.73 | 1.78 | — | — | — | |||||||
| Broadcom Inc. | 0.55 | 1.49 | 1.61 | 1.59 | 1.48 | 1.46 | 1.52 | 1.43 | 1.24 | 1.10 | 1.09 | 1.07 | 1.03 | 1.00 | 0.98 | 0.96 | 0.93 | 0.91 | — | — | — | |||||||
| Intel Corp. | 0.52 | 0.51 | 0.52 | 0.53 | 0.58 | 0.62 | 0.70 | 0.73 | 0.75 | 0.83 | 0.87 | 0.91 | 0.97 | 0.96 | — | — | — | — | — | — | — | |||||||
| KLA Corp. | 3.40 | 3.59 | 3.96 | 4.03 | 4.69 | 6.57 | 2.12 | 2.02 | 1.93 | 2.05 | 2.07 | 2.07 | 2.16 | 2.18 | 2.43 | 1.98 | 1.84 | 1.72 | — | — | — | |||||||
| Lam Research Corp. | 1.97 | 2.12 | 2.24 | 2.29 | 2.43 | 2.74 | 2.78 | 2.55 | 2.71 | 2.43 | 2.47 | 2.17 | 2.04 | 1.94 | 2.12 | 2.18 | 1.92 | 2.07 | — | — | — | |||||||
| Micron Technology Inc. | 0.38 | 0.35 | 0.40 | 0.49 | 0.55 | 0.62 | 0.66 | 0.65 | 0.65 | 0.63 | 0.60 | 0.58 | 0.55 | 0.55 | 0.54 | 0.53 | 0.57 | 0.65 | — | — | — | |||||||
| NVIDIA Corp. | 1.06 | 1.22 | 1.34 | 1.25 | 1.12 | 1.01 | 1.02 | 1.04 | 1.03 | 0.99 | 0.96 | 0.94 | 0.90 | 0.89 | — | — | — | — | — | — | — | |||||||
| Qualcomm Inc. | 1.57 | 1.66 | 1.87 | 2.08 | 2.28 | 2.45 | 2.63 | 2.95 | 3.18 | 3.37 | 3.98 | 3.96 | 3.62 | 3.87 | 6.05 | 8.13 | 5.43 | 4.94 | — | — | — | |||||||
| Texas Instruments Inc. | 0.99 | 1.04 | 1.09 | 1.18 | 1.28 | 1.37 | 1.39 | 1.39 | 1.35 | 1.38 | 1.45 | 1.50 | 1.52 | 1.57 | — | — | — | — | — | — | — | |||||||
Based on: 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-10-01), 10-Q (reporting date: 2023-07-02), 10-Q (reporting date: 2023-04-02), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-10-02), 10-Q (reporting date: 2022-07-03), 10-Q (reporting date: 2022-04-03), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-10-03), 10-Q (reporting date: 2021-07-04), 10-Q (reporting date: 2021-04-04), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-27), 10-Q (reporting date: 2020-06-28), 10-Q (reporting date: 2020-03-29), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-29), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31).
1 Q1 2024 Calculation
Equity turnover
= (RevenuesQ1 2024
+ RevenuesQ4 2023
+ RevenuesQ3 2023
+ RevenuesQ2 2023)
÷ Shareholders’ equity
= (599,819 + 670,600 + 703,732 + 684,437)
÷ 2,557,829 = 1.04
2 Click competitor name to see calculations.
The financial data reveals several notable trends and shifts over the analyzed periods. Revenues exhibited growth from March 2019 through the third quarter of 2021, peaking in July 2021. Following this peak, a general declining trend in revenues is observable, with values decreasing steadily through the first quarter of 2024. This indicates a period of expansion followed by a contraction in the most recent quarters.
Shareholders' equity shows a consistent upward trajectory from March 2019 to December 2021, reaching its highest point in that quarter. However, from early 2022 to mid-2023, there is a period of decline in equity, which appears to be partially reversed in the latter part of 2023 and early 2024, where a moderate recovery is evident. This pattern suggests fluctuations potentially influenced by changes in retained earnings, dividends, or share buybacks.
The equity turnover ratio is available starting from March 2020 and demonstrates a clear downward trend across the entire period. Beginning with a value around 1.55, the ratio gradually decreases to approximately 1.04 by March 2024. This decline indicates that revenues relative to shareholders' equity have been decreasing, which might suggest reduced efficiency in generating sales from the equity base over time.
- Revenue Analysis
- From approximately 494 million US dollars in March 2019 to a peak exceeding 1 billion US dollars in July 2021, revenues nearly doubled before contracting to around 600 million US dollars by March 2024. The peak followed by a sustained decrease may point to a cyclical business environment or market challenges post-2021.
- Shareholders’ Equity Trends
- The data show growth in equity from roughly 1.47 billion US dollars in March 2019 to over 2.56 billion US dollars by December 2021. Subsequently, equity decreased to about 2.25 billion US dollars by mid-2022 before recovering to approximately 2.56 billion US dollars again by the first quarter of 2024. This fluctuation signals possible operational results impacting retained earnings or shareholder distributions adjustments.
- Equity Turnover Insights
- The decline in equity turnover ratio from 1.55 to 1.04 over four years suggests diminishing revenue generation efficiency per unit of equity. This trend warrants attention as it could reflect operational inefficiencies, increased capital base without proportional revenue growth, or changes in business mix impacting asset utilization.