Teradyne, Inc. — Earnings Quality Grade D
TER · Technology
Significant concerns
Screening Summary
Financial Trends
Revenue & Net Income ($B)
Margins (%)
18-Point Screening
Revenue Quality
DSO surged by 29 days (61 → 90)
AR outpaced revenue for 2 consecutive years
Revenue grew 13.1% but CFFO only 0.3%
Expense Quality
Inventory 27.2% vs COGS 13.8%. Normal
CapEx growth 13.1% vs revenue 13.1%. Normal
SG&A/Gross Profit = 34.9%. Normal
Gross margin 58.2%, change -0.3pp. Stable
Cash Flow Quality
CFFO/NI = 1.22. Profits backed by cash
FCF $0.5B, FCF/NI = 0.81
Accruals ratio = -2.9%. Low accruals
Cash $0.3B covers debt $0.3B
Balance Sheet Health
Goodwill+Intangibles $0.6B = 20% of equity. Manageable
Debt/EBITDA = 0.4x. Healthy
Other assets grew 44.5% vs revenue 13.1%
No write-off data
Acquisition Risk
FCF after acquisitions positive
Goodwill+Intangibles surged 39% YoY
Manipulation Score
M-Score = -2.20 (grey zone)
Beneish M-Score
Altman Z-Score
Generated from public financial data using forensic accounting frameworks. Not investment advice. Data: Yahoo Finance · 2026-04-10