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TER · Nasdaq · United States · Instruments For Meas & Testing Of Electricity & Elec Signals
In shortTERADYNE, INC is profitable, generates cash and holds more cash than debt, with revenue growing (+13.1% last year).
Financial health
Strong
Built from five areas over the last five annual reports. Tap an area to see the figures behind it.
| Operating marginShare of each sale left after running the business, before interest and tax. | 20.4% | 85/100 |
|---|---|---|
| Net marginShare of each sale left as profit after every cost, interest and tax. | 17.4% | 89/100 |
| Return on equityProfit earned on the money shareholders put in. Above 15% is strong. | 19.7% | 99/100 |
| Return on invested capitalProfit earned on all the capital used (equity and debt). Above 10% usually means a real competitive edge. | 19.1% | 100/100 |
Weight in the score: 25%
| Current ratioShort-term assets divided by short-term debts. Below 1 can mean tight cash. | 1.75× | 79/100 |
|---|---|---|
| Debt / equityDebt compared with the shareholders' stake. Above 2 is heavily indebted. | 0.07× | 100/100 |
| Net debt / EBITDAYears of operating profit needed to repay net debt. Below 2 is comfortable. | Net cash | 100/100 |
| Interest coverageHow many times operating profit covers interest. Below 2 is risky. | 94.95× | 100/100 |
| Altman Z''Bankruptcy-risk model. Above 2.6 safe, below 1.1 distress. | 5.05 | 100/100 |
Weight in the score: 25%
| Free cash flow marginCash left from each sale after investments. The money that can pay dividends or reduce debt. | 14.1% | 76/100 |
|---|---|---|
| Free cash flow / net incomeHow much accounting profit turns into real cash. Near 1 or above is healthy. | 0.81× | 64/100 |
| Years with positive free cash flow (last 5) | 5 of 5 | 100/100 |
Weight in the score: 20%
| Profitable years (last 5) | 5 of 5 | 100/100 |
|---|---|---|
| Years of revenue decline (last 5) | 2 of 5 | 33/100 |
| Revenue growth volatility | 15.7% | 53/100 |
| Operating margin volatility | 5.6% | 58/100 |
Weight in the score: 20%
| Revenue growth, 3-year average | 0.4% | 19/100 |
|---|---|---|
| EPS growth, 3-year average | -6.3% | 0/100 |
Weight in the score: 10%
Fiscal year 2025 · change vs prior year
Annual figures as reported. Hover a bar or point for the exact value.
5 older years available with the 10-year history. Essential plan, from €8.25/month →
The last 5 fiscal years from the company's annual reports.
USD millions; negative values in parentheses.
| Fiscal year | FY21 | FY22 | FY23 | FY24 | FY25 |
|---|---|---|---|---|---|
| Revenue | 3,703 | 3,155 | 2,676 | 2,820 | 3,190 |
| Cost of revenue | 1,496 | 1,288 | 1,140 | 1,171 | 1,333 |
| Gross profit | 2,207 | 1,867 | 1,537 | 1,649 | 1,857 |
| Research & development | 428 | 441 | 418 | 461 | 505 |
| Selling, general & admin | 548 | 558 | 577 | 617 | 649 |
| Operating income | 1,201 | 832 | 501 | 594 | 650 |
| Interest expense | 18 | 3.7 | 3.8 | 3.6 | 6.8 |
| Pre-tax income | 1,161 | 840 | 526 | 609 | 653 |
| Income tax | 146 | 125 | 77 | 60 | 79 |
| Net income | 1,015 | 716 | 449 | 542 | 554 |
| Diluted EPS | $5.53 | $4.22 | $2.73 | $3.32 | $3.47 |
| Diluted shares (millions) | 184 | 170 | 164 | 163 | 160 |
5 older years available with the 10-year history. Essential plan, from €8.25/month →
5.05 Safe zone
Estimates bankruptcy risk from working capital, retained earnings, operating profit and equity. Above 2.6 is considered safe, below 1.1 signals distress.
6/9
Nine yes-or-no tests on profitability, debt, liquidity and efficiency versus the prior year. 7 to 9 is strong, 0 to 3 is weak.
All figures: SEC EDGAR. Ratios and scores are computed by Scorvest (see how it works). Information only, not investment advice. How it works
Latest annual report: Jun 28, 2026 · Data updated Jul 31, 2026