Teradyne, Inc. (TER) Return on Invested Capital (ROIC): 18.45%
Is Teradyne, Inc.’s return on invested capital (ROIC) high or low?
Teradyne, Inc.'s return on invested capital (ROIC) of 18.45% is 19% below its 5-year average of 22.86%, near the low end of its 5-year range (15.04%–34.48%).
The return on invested capital (ROIC) for Teradyne, Inc. (TER) is 18.45% as of Wednesday, June 10, 2026. It is above its 12-month average by 3.36% (17.85%).
TER Return on Invested Capital (ROIC) Chart
TER Average Return on Invested Capital (ROIC) Chart
TER Current vs Average Return on Invested Capital (ROIC) Chart
TER Return on Invested Capital (ROIC) Metrics
RETURN ON INVESTED CAPITAL (ROIC)
18.45%
RETURN ON INVESTED CAPITAL (ROIC) AVG TTM
17.85%
RETURN ON INVESTED CAPITAL (ROIC) AVG 3Y
18.95%
RETURN ON INVESTED CAPITAL (ROIC) AVG 5Y
22.86%
RETURN ON INVESTED CAPITAL (ROIC) AVG 10Y
17.83%
RETURN ON INVESTED CAPITAL (ROIC) AVG 15Y
16.10%
RETURN ON INVESTED CAPITAL (ROIC) AVG 20Y
10.40%
CURRENT VS TTM AVG
+3.36%
CURRENT VS 3Y AVG
-2.66%
CURRENT VS 5Y AVG
-19.30%
CURRENT VS 10Y AVG
+3.46%
CURRENT VS 15Y AVG
+14.58%
CURRENT VS 20Y AVG
+77.47%
TER Competitors' Return on Invested Capital (ROIC)
| NAME | MARKET CAP | RETURN ON INVESTED CAPITAL (ROIC) | TTM | 3Y | 5Y |
|---|---|---|---|---|---|
| Teradyne, Inc. (TER) | — | 18.45% | 17.85% | 18.95% | 22.86% |
| Keysight Technologies, Inc. (KEYS) | $55.79B | 8.02% | 7.76% | 11.85% | 12.05% |
| Block, Inc. (SQ) | $51.73B | -12.82% | -4.90% | -3.29% | -1.18% |
| Hewlett Packard Enterprise Company (HPE) | $60.85B | -0.59% | 1.82% | 3.45% | 3.64% |
| Microchip Technology Incorporated (MCHP) | $47.58B | 3.11% | 1.54% | 8.45% | 8.51% |
| ON Semiconductor Corporation (ON) | $42.96B | 6.24% | 9.06% | 13.87% | 12.29% |
| Block, Inc. (XYZ) | $39.66B | 7.52% | 6.62% | 3.56% | 2.62% |
| NXP Semiconductors N.V. (NXPI) | $72.02B | 11.03% | 11.97% | 13.63% | 0.71% |
| Monolithic Power Systems, Inc. (MPWR) | $72.71B | 15.30% | 15.76% | 18.62% | 17.70% |
| Workday, Inc. (WDAY) | $36.01B | 5.95% | 4.34% | 1.95% | 0.28% |
Capital Efficiency
ROIC
18.4%
ROE
27.2%
Teradyne, Inc. Return on Invested Capital (ROIC) Formula & Definition
ROIC = NOPAT / Invested Capital
Return on invested capital measures the after-tax return a company earns on all capital (debt and equity) invested in the business.
Expanded definitions: Investopedia, Wikipedia, Corporate Finance Institute
Teradyne, Inc. Return on Invested Capital (ROIC) FAQ
- What is the return on invested capital (ROIC) for Teradyne, Inc. (TER)?
- The return on invested capital (ROIC) for TER stock is 18.45%.
- Is Teradyne, Inc.'s return on invested capital (ROIC) high or low?
- Teradyne, Inc.'s return on invested capital (ROIC) of 18.45% is 19% below its 5-year average of 22.86%, near the low end of its 5-year range (15.04%–34.48%).
- What is the TTM average return on invested capital (ROIC) for Teradyne, Inc. (TER)?
- The TTM average return on invested capital (ROIC) for TER stock is 17.85%.
- What is the 3Y average return on invested capital (ROIC) for Teradyne, Inc. (TER)?
- The 3Y average return on invested capital (ROIC) for TER stock is 18.95%.
- What is the 5Y average return on invested capital (ROIC) for Teradyne, Inc. (TER)?
- The 5Y average return on invested capital (ROIC) for TER stock is 22.86%.
- What is the 10Y average return on invested capital (ROIC) for Teradyne, Inc. (TER)?
- The 10Y average return on invested capital (ROIC) for TER stock is 17.83%.
- What is the 15Y average return on invested capital (ROIC) for Teradyne, Inc. (TER)?
- The 15Y average return on invested capital (ROIC) for TER stock is 16.10%.
- What is the 20Y average return on invested capital (ROIC) for Teradyne, Inc. (TER)?
- The 20Y average return on invested capital (ROIC) for TER stock is 10.40%.
Teradyne, Inc. Return on Invested Capital (ROIC) History
| DATE | RETURN ON INVESTED CAPITAL (ROIC) |
|---|---|
| 2025-12-31 | 18.45% |
| 2024-12-31 | 17.25% |
| 2023-12-31 | 15.04% |
| 2022-12-31 | 25.08% |
| 2021-12-31 | 34.48% |
| 2020-12-31 | 26.88% |
| 2019-12-31 | 21.71% |
| 2018-12-31 | 20.52% |
| 2017-12-31 | 9.72% |
| 2016-12-31 | -2.08% |
| 2015-12-31 | 9.11% |
| 2014-12-31 | 3.66% |
| 2013-12-31 | 6.65% |
| 2012-12-31 | 10.99% |
| 2011-12-31 | 12.74% |
| 2010-12-31 | 27.43% |
| 2009-12-31 | -12.04% |
| 2008-12-31 | -38.43% |
| 2007-12-31 | 2.87% |
| 2006-12-31 | 12.18% |
| 2005-12-31 | -3.89% |
| 2004-12-31 | 8.08% |
| 2003-12-31 | -11.67% |
| 2002-12-31 | -34.24% |
| 2001-12-31 | -9.71% |
| 2000-12-31 | 28.53% |
| 1999-12-31 | 15.20% |
| 1998-12-31 | 8.79% |
| 1997-12-31 | 11.78% |
| 1996-12-31 | 9.34% |
Related Metrics
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.
- Sector
- Technology
- Industry
- Semiconductors
- CEO
- Gregory Stephen Smith