TERNEUTRAL

TER Current Ratio Analysis

2.12x

Updated 1011h ago·SEC filings & market data

Key Takeaway

A current ratio of 2.12x means Teradyne holds $2.12 in short-term assets (like cash and inventory) for every $1 of short-term liabilities due within a year, showing ample ability to cover near-term obligations.

Sector Performance

79th percentile

TER

2.12x

Sector Median

1.26x

Sector Avg

2.60x

Prior Period

2.15x(Jul 2026)

↓ Declining
📊

Deep Analysis

A current ratio of 2.12x means Teradyne holds $2.12 in short-term assets (like cash and inventory) for every $1 of short-term liabilities due within a year, showing ample ability to cover near-term obligations.

That level towers over the sector median of 1.26x and places the company in the 79th percentile, so it carries a much larger liquidity buffer than most peers. The ratio slipped 1.4% quarter-over-quarter from 2.15x to 2.12x, a modest pullback, while year-over-year and 8-quarter trend data are unavailable, limiting directional context. High liquidity with a slight downward drift signals low near-term solvency risk but no expanding margin of safety, so the investment angle is defensive rather than growth-oriented. This aligns with the overall NEUTRAL verdict: the ample cushion supports stability, but the

Frequently Asked Questions

What does the Current Ratio tell investors about TER?

Measures short-term financial health. A ratio above 1.5 is generally healthy; below 1.0 may indicate liquidity stress.

How is the Current Ratio calculated?

Current Ratio is calculated as: Current Assets / Current Liabilities.

The Formula

Current Assets / Current Liabilities

Why It Matters

Measures short-term financial health. A ratio above 1.5 is generally healthy; below 1.0 may indicate liquidity stress.

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TER

2.12x

Sector Median

1.26x

Sector Avg

2.60x

How TER's Current Ratio compares to sector peers.

Not financial advice. Research tool only. Data may be delayed.