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Teradyne, Inc. (TER) FCF Payout Ratio: 14.14%

Is Teradyne, Inc.’s FCF payout ratio high or low?

Teradyne, Inc.'s FCF payout ratio of 14.14% is in line with its 5-year average of 13.73%, near the high end of its 5-year range (6.83%–16.94%).

The FCF payout ratio for Teradyne, Inc. (TER) is 14.14%. It is below its 12-month average by 14.47% (16.53%).

TER FCF Payout Ratio Chart

TER FCF Payout Ratio
16.94%+5.10% 1Y
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TER Average FCF Payout Ratio Chart

TER Current vs Average FCF Payout Ratio Chart

TER FCF Payout Ratio Metrics

FCF PAYOUT RATIO

14.14%

FCF PAYOUT RATIO AVG TTM

16.53%

FCF PAYOUT RATIO AVG 3Y

16.46%

FCF PAYOUT RATIO AVG 5Y

13.73%

FCF PAYOUT RATIO AVG 10Y

14.06%

FCF PAYOUT RATIO AVG 15Y

13.86%

FCF PAYOUT RATIO AVG 20Y

13.86%

CURRENT VS TTM AVG

-14.47%

CURRENT VS 3Y AVG

-14.07%

CURRENT VS 5Y AVG

+2.99%

CURRENT VS 10Y AVG

+0.55%

CURRENT VS 15Y AVG

+2.05%

CURRENT VS 20Y AVG

+2.05%

Payout Ratio Comparison

FCF Payout Ratio

14.1%

Earnings Payout Ratio

14.3%

Dividend Yield

0.14%

FCF Yield

0.95%

Annual FCF Payout Ratio History

YearFree Cash FlowDividends PaidFCF Payout Ratio
2025$450.41M$76.31M16.9%
2024$474.08M$76.42M16.1%
2023$425.59M$67.88M15.9%
2022$414.67M$69.71M16.8%
2021$965.89M$65.98M6.8%
2020$683.96M$66.48M9.7%
2019$444.11M$61.30M13.8%
2018$362.50M$67.32M18.6%
2017$521.12M$55.45M10.6%
2016$360.53M$48.62M13.5%
2015$320.71M$50.71M15.8%
2014$323.08M$37.42M11.6%
2013$160.54M$00.0%
2012$285.45M$00.0%
2011$187.67M$00.0%
2010$490.76M$00.0%
2009$79.39M$00.0%
2008$75.93M$00.0%
2007$42.10M$00.0%
2006$339.67M$00.0%
2005($99.15M)$0N/A (Loss)
2004$100.27M$00.0%
2003$3.34M$00.0%
2002($50.68M)$0N/A (Loss)
2001($277.15M)$0N/A (Loss)
2000$235.67M$00.0%
1999$247.70M$00.0%
1998$119.16M$00.0%
1997($92.98M)$0N/A (Loss)
1996$191.33M$00.0%

Formula: FCF Payout Ratio = Dividends Paid / Free Cash Flow × 100

FCF payout and earnings payout:

  • FCF represents operating cash flow after capital expenditures
  • FCF payout compares dividends paid with free cash flow
  • FCF payout above 100% means dividends paid exceeded free cash flow for the period
  • Earnings payout compares dividends paid with net income

Reading the series: Use the chart and table to compare dividend payments with cash generation over time.

Teradyne, Inc. FCF Payout Ratio Formula & Definition

FCF Payout Ratio measures what percentage of free cash flow is paid out as dividends. Unlike earnings-based payout, it compares dividends with cash generated after capital expenditures.

Expanded definitions: Investopedia, Wikipedia, Corporate Finance Institute

Teradyne, Inc. FCF Payout Ratio FAQ

What is the FCF payout ratio for Teradyne, Inc. (TER)?
The FCF payout ratio for TER stock is 14.14%.
Is Teradyne, Inc.'s FCF payout ratio high or low?
Teradyne, Inc.'s FCF payout ratio of 14.14% is in line with its 5-year average of 13.73%, near the high end of its 5-year range (6.83%–16.94%).
What is the TTM average FCF payout ratio for Teradyne, Inc. (TER)?
The TTM average FCF payout ratio for TER stock is 16.53%.
What is the 3Y average FCF payout ratio for Teradyne, Inc. (TER)?
The 3Y average FCF payout ratio for TER stock is 16.46%.
What is the 5Y average FCF payout ratio for Teradyne, Inc. (TER)?
The 5Y average FCF payout ratio for TER stock is 13.73%.
What is the 10Y average FCF payout ratio for Teradyne, Inc. (TER)?
The 10Y average FCF payout ratio for TER stock is 14.06%.
What is the 15Y average FCF payout ratio for Teradyne, Inc. (TER)?
The 15Y average FCF payout ratio for TER stock is 13.86%.
What is the 20Y average FCF payout ratio for Teradyne, Inc. (TER)?
The 20Y average FCF payout ratio for TER stock is 13.86%.

Teradyne, Inc. FCF Payout Ratio History

DATEFCF PAYOUT RATIO
2025-12-3116.94%
2024-12-3116.12%
2023-12-3115.95%
2022-12-3116.81%
2021-12-316.83%
2020-12-319.72%
2019-12-3113.80%
2018-12-3118.57%
2017-12-3110.64%
2016-12-3113.49%
2015-12-3115.81%
2014-12-3111.58%

About Teradyne, Inc.

Teradyne, Inc., established in 1960 and headquartered in North Reading, Massachusetts, is a global leader specializing in the creation, production, sale, and maintenance of automated testing solutions. The company's operations are categorized into four principal divisions: 1. Semiconductor Test: This segment delivers solutions for testing microchips at both the wafer and finished device package stages. These capabilities serve a wide array of sectors, including automotive, industrial, telecommunications, consumer electronics, mobile devices, cloud computing, and gaming. Notable offerings include the FLEX test platform, the J750 system for high-volume semiconductor testing, the Magnum platform specialized for memory components like flash and DRAM, and the ETS platform, which caters to the analog/mixed-signal markets for chip makers and outsourced assembly/test providers. Its clientele encompasses integrated device manufacturers (IDMs), fabless chip companies, foundries, and independent semiconductor assembly and test firms. 2. System Test: This division provides instrumentation and systems for defense and aerospace applications, data storage testing apparatus, and solutions for circuit board examination and fault detection. 3. Industrial Automation: This segment supplies collaborative robotic arms, self-governing mobile robots, and sophisticated software for robotic control, primarily catering to clients in manufacturing, logistics, and lighter industrial applications. 4. Wireless Test: Operating under its LitePoint brand, this segment delivers crucial testing solutions for the development and production of various wireless products, ranging from modules and smartphones to tablets, laptops, peripherals, and Internet-of-Things (IoT) gadgets. Key offerings include IQxel for Wi-Fi and other connectivity standards, IQxstream for comprehensive cellular technology testing (including 5G), IQcell for multi-device cellular signaling verification, IQgig, and ready-to-use test software tailored for wireless chipsets.

North Reading, MA
6,500 employees
Technology / Semiconductors
Sector
Technology
Industry
Semiconductors
CEO
Gregory Stephen Smith