Forensic Analysis · Industrials / Manufacturing / Defense · as of Aug 7, 2026
Teradyne, Inc (TER)
A forensic read on Teradyne, Inc built from its complete SEC filings — financial-health screens, earnings quality, red flags and a price-aware rating. Reproducible math, not opinion.
A · High-quality compounder
Forensic grade
Safe
Financial health
15.5
Distress distance
Clean
Earnings quality
2
Forensic signals
52.3
P / E (ttm)
19.8%
ROE
$59.3B
Market cap
0.14%
Dividend yield
13.1%
Revenue growth
This free snapshot doesn't read filing or proxy text, so the auditor-quality and governance checks that can lower a grade were not evaluated (red flags, auditor quality, say on pay, board independence). Those checks only ever lower a grade, so the full analysis can land below the grade above but never above it — treat it as the most favourable reading, not the settled one.
Teradyne, Inc earns an A (High-quality compounder) forensic quality grade, and its balance-sheet distress test reads 15.5, placing it in the Safe zone. 2 forensic signals were flagged in its latest SEC filings, led by shareholder returns.
What the filings flag
173% of FCF
FY2025
Shareholder returns.Returned $778M to shareholders (buybacks + dividends) in FY2025 — 173% of free cash flow. More than free cash flow generated — and beyond operating cash too, so the extra is coming from debt or cash reserves, which isn't sustainable indefinitely. Counting the $64M of stock-based comp paid out in shares on top of that, the combined claim on free cash flow is 187%.
+17.6%
FY2024→FY2025
Accruals ratio (% of NOA).Net operating assets grew +17.6% relative to their own average in FY2025 — scaled by NOA itself, not total assets (see the Forensic Screens card's differently-scaled Sloan Accrual Ratio for that read). Accruals are building faster than is comfortable — part of profit is sitting in the balance sheet rather than turning to cash. The build is led by receivables up +67% against revenue +13% and inventory up +27% against +14% in cost of sales. This is the seventh straight fiscal year of building accruals — an even longer streak than the 3-year mark that already signals a materially stronger tell. The cash-flow cross-check is more mixed: reported earnings ran in line with operating cash by 5% of net operating assets, diverging from the balance-sheet accrual read.
Key fundamentals
Latest Revenue$3.19B
Revenue Growth YoY+13.1%
Net Margin17.4%
Free Cash Flow$450.4M
Return on Equity19.8%
Debt / Equity0.07x
The forensic grade and screens above are free — no account needed. Want the AI investment read on top — the 0–100 rating, thesis, bull-vs-bear, red flags and the 12-month scenario, written from Teradyne, Inc's actual 10-K/10-Q/8-K filings?