Teradyne (FRA:TEY) ROCE % : 11.58% (As of Mar. 2024)

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What is Teradyne ROCE %?

ROCE % measures how well a company generates profits from its capital. It is calculated as EBIT divided by Capital Employed, where Capital Employed is calculated as Total Assets minus Total Current Liabilities. Teradyne's annualized ROCE % for the quarter that ended in Mar. 2024 was 11.58%.

Teradyne ROCE % Historical Data

The historical data trend for Teradyne's ROCE % can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

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Teradyne ROCE % Chart

Teradyne Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

ROCE %

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24.76

34.19

41.03

30.30

18.70

Teradyne Quarterly Data
	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23	Mar24
ROCE %	Get a 7-Day Free Trial															14.16	21.11	21.46	20.03	11.58

Teradyne ROCE % Calculation

Teradyne's annualized ROCE % for the fiscal year that ended in Dec. 2023 is calculated as:

ROCE %	=	EBIT	/	( (Capital Employed	+	Capital Employed)	/ count )
		(A: Dec. 2023 )		(A: Dec. 2022 )		(A: Dec. 2023 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(A: Dec. 2023 )		(A: Dec. 2022 )		(A: Dec. 2023 )
	=	485.44	/	( ( (3305.182 - 704.472)	+	(3197.418 - 605.175) )	/ 2 )
	=	485.44	/	( (2600.71	+	2592.243)	/ 2 )
	=	485.44	/	2596.4765
	=	18.70 %

Teradyne's ROCE % of for the quarter that ended in Mar. 2024 is calculated as:

ROCE %	=	EBIT ⁽¹⁾	/	( (Capital Employed	+	Capital Employed)	/ count )
		(Q: Mar. 2024 )		(Q: Dec. 2023 )		(Q: Mar. 2024 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(Q: Mar. 2024 )		(Q: Dec. 2023 )		(Q: Mar. 2024 )
	=	302.488	/	( ( (3197.418 - 605.175)	+	(3137.862 - 506.662) )	/ 2 )
	=	302.488	/	( ( 2592.243	+	2631.2 )	/ 2 )
	=	302.488	/	2611.7215
	=	11.58 %

(1) Note: The EBIT data used here is four times the quarterly (Mar. 2024) EBIT data.

Teradyne (FRA:TEY) ROCE % Explanation

ROCE % can be especially useful when comparing the performance of capital-intensive companies. Unlike ROE %, which indicates the profitability of Shareholders Equity, ROCE % also considers long-term debt in Capital Employed. This can be helpful when analyzing companies with significant debt, as the result is neutralized by taking debt into consideration.

Generally speaking, a higher ROCE % indicates a stonger profitability for a company. Moreover, it is important to look at the ratio from a long term perspective. Investors tend to favor companies with stable and rising ROCE % trend over those with volatile ones.

Teradyne ROCE % Related Terms

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Teradyne (FRA:TEY) Business Description

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GURUFOCUS.COM » STOCK LIST » Technology » Semiconductors » Teradyne Inc (FRA:TEY) » Definitions » ROCE %

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TER:USA TER:Mexico

Address

600 Riverpark Drive, North Reading, MA, USA, 01864

Website

https://www.teradyne.com

Teradyne provides testing equipment, including automated test equipment for semiconductors, system testing for hard disk drives, circuit boards, and electronics systems and wireless testing for devices. The firm entered the industrial automation market in 2015, into which it sells collaborative and autonomous robots for factory applications. Teradyne serves numerous end markets and geographies directly and indirectly with its products, but its most significant exposure is to semiconductor testing. Teradyne serves vertically integrated, fabless, and foundry chipmakers with its equipment.

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