TER Current Ratio Analysis
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 percentileTER
2.12x
Sector Median
1.26x
Sector Avg
2.60x
Prior Period
2.15x(Jul 2026)
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.
Learn More About Current Ratio
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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2.12x
Sector Median
1.26x
Sector Avg
2.60x
How TER's Current Ratio compares to sector peers.
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Not financial advice. Research tool only. Data may be delayed.