Forensic Analysis · Industrial & Scientific Instruments · as of Nov 9, 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
5.0
Distress distance
2
Forensic signals
19.7%
ROE
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 (auditor quality, say on pay, board independence, going concern). 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 5.0, 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. That is $328M (73%) more than free cash flow covered, and more than operating cash flow as well. The balance sheet's own liquid holdings covered part of it: cash fell $260M over FY2025 — $260M of the $328M; total debt is not on file on the same basis at both year ends, so whether new borrowing also covered part of it cannot be read. The FY2025 cash-flow statement filed $49M of investments sold or matured; net cash used in investing activities of $369M; net cash used in financing activities of $562M. A payout past free cash flow draws the balance sheet down in every year it continues, 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%.
+11.1%
FY2024→FY2025
Accruals ratio (% of NOA).Net operating assets grew +11.1% relative to their own average in FY2025 — scaled by NOA itself, not by total assets, which is what the Forensic Screens card's own accrual row divides by. Accruals are building faster than is comfortable — part of profit is sitting in the balance sheet rather than turning to cash. Net operating assets also rose $161.0M through acquisitions (increase in goodwill and intangibles); that purchase is investing and is excluded from this ratio. The build is led by receivables up +67% against revenue +13% and inventory up +27% against +14% in cost of sales. A cash-flow measure on the same base disagrees: reported earnings ran in line with operating cash by 5% of net operating assets, against an accruals ratio of 11.1%. The two are computed differently: the accruals ratio is the change in net operating assets over average net operating assets, while the cash-flow figure is net income less operating cash flow over that same average. Read them as two results, not one.Accruals ratio: the year-over-year change in net operating assets, relative to their own average.NOA (net operating assets): the money tied up in running the business, operating assets minus operating liabilities.
Key fundamentals
Latest Revenue$3.19B
Revenue Growth YoY+13.1%
Revenue CAGR (2yr)+9.2%
Net Margin17.4%
Free Cash Flow$450.4M
Return on Equity19.7%
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?