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- Statement of Comprehensive Income
- Cash Flow Statement
- Common-Size Income Statement
- DuPont Analysis: Disaggregation of ROE, ROA, and Net Profit Margin
- Analysis of Geographic Areas
- Common Stock Valuation Ratios
- Enterprise Value to FCFF (EV/FCFF)
- Capital Asset Pricing Model (CAPM)
- Operating Profit Margin since 2005
- Return on Equity (ROE) since 2005
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Adjustment to Net Income (Loss): Mark to Market Available-for-sale Securities
Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).
- Net Income Trends
- The reported net income showed a significant increase from 467,468 thousand USD in 2019 to a peak of 1,014,589 thousand USD in 2021. Following this peak, there was a notable decline in reported net income to 715,501 thousand USD in 2022 and a further decrease to 448,752 thousand USD in 2023.
- The adjusted net income closely follows the trend of the reported net income, starting at 472,793 thousand USD in 2019 and reaching 1,011,339 thousand USD in 2021. It then declined to 703,136 thousand USD in 2022 and slightly increased to 451,219 thousand USD in 2023.
- Comparison Between Reported and Adjusted Net Income
- The adjusted net income figures are consistently slightly higher than the reported net income in each period, although the differences are minimal. This suggests minor adjustments to net income after accounting for certain non-recurring items or other adjustments.
- Overall Analysis
- Both reported and adjusted net incomes demonstrate strong growth until 2021, followed by a downward trend over the subsequent two years. Despite the decrease after 2021, the net income levels in 2023 remain close to the 2019 figures, indicating volatility but a return to near original levels. The close alignment between reported and adjusted net incomes indicates stable adjustment practices with no material deviations.
Adjusted Profitability Ratios: Mark to Market Available-for-sale Securities (Summary)
Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).
The data across the analyzed periods indicates notable fluctuations in profitability and returns efficiency. Several key financial ratios are reported and adjusted versions, providing insight into the underlying performance trends.
- Net Profit Margin
- The reported net profit margin exhibited a rising trend from 20.37% in 2019 to a peak of 27.4% in 2021, suggesting increasing profitability during that period. However, in the subsequent years, a decline is observed, dropping to 22.68% in 2022 and further to 16.77% in 2023. The adjusted net profit margin follows a similar pattern, with values closely aligned to the reported figures, indicating that adjustments had minimal impact on the profitability measure.
- Return on Equity (ROE)
- The reported ROE increased steadily from 31.58% in 2019 to its highest point in 2021 at 39.59%, demonstrating strong returns generated on shareholders' equity. After 2021, there is a marked decrease to 29.19% in 2022 and a sharper decline to 17.77% in 2023. The adjusted ROE mirrors this trajectory, with marginally different values, suggesting that adjustments did not significantly alter the overall return profile for equity holders.
- Return on Assets (ROA)
- Reported ROA mirrored the trend of other profitability metrics, increasing from 16.77% in 2019 to 26.63% in 2021, indicating enhanced asset utilization and operational efficiency. The ratio then declined to 20.44% in 2022 and dropped further to 12.87% in 2023. The adjusted ROA is consistent with the reported figures, pointing to stability between adjusted and reported operational performance measures.
Overall, the data demonstrates a period of improving profitability and returns from 2019 through 2021, followed by a substantial reduction in all measured indicators in the two most recent years. The closeness of adjusted and reported figures suggests that the company's core operational and financial conditions are reliably reflected in reported metrics. The pronounced downward trend since 2021 may warrant further investigation into underlying causes such as market conditions, cost structure, or investment impacts.
Teradyne Inc., Profitability Ratios: Reported vs. Adjusted
Adjusted Net Profit Margin
Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).
2023 Calculations
1 Net profit margin = 100 × Net income ÷ Revenues
= 100 × ÷ =
2 Adjusted net profit margin = 100 × Adjusted net income ÷ Revenues
= 100 × ÷ =
- Net Income Trends
- Both reported and adjusted net income exhibit a notable upward trajectory from 2019 to 2021, increasing from approximately $467 million to over $1 billion. This denotes a period of significant profitability growth. However, starting in 2022, there is a marked decline in net income figures across both reported and adjusted measures, dropping to roughly $715 million in 2022 and further down to around $449 million by 2023. This reversal suggests challenges impacting profitability in the most recent years.
- Net Profit Margin Evolution
- The reported net profit margin follows a similar pattern to net income, rising steadily from 20.37% in 2019 to a peak of 27.4% in 2021. This indicates improving operational efficiency or favorable market conditions during this period. In 2022, the margin decreases significantly to 22.68%, with a further decline to 16.77% in 2023, signaling pressure on profitability margins possibly due to increased costs, pricing pressures, or other adverse factors.
- Comparison of Reported versus Adjusted Figures
- The adjusted figures closely mirror the reported values throughout the period, with only marginal differences. Both adjusted net income and adjusted net profit margin follow the same trend of growth until 2021, followed by a decline in 2022 and 2023. This indicates that adjustments made to net income have little impact on the overall profitability trends, suggesting that exceptional items or one-time adjustments were not a dominant driver of changes in reported earnings.
- Summary of Financial Performance
- The financial data reveals a period of strong growth and profitability improvement up to 2021, followed by a significant downturn in both income and margin measures in the subsequent two years. This pattern points to a shift in financial performance dynamics, warranting further investigation into the factors influencing the decline experienced in 2022 and 2023.
Adjusted Return on Equity (ROE)
Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).
2023 Calculations
1 ROE = 100 × Net income ÷ Shareholders’ equity
= 100 × ÷ =
2 Adjusted ROE = 100 × Adjusted net income ÷ Shareholders’ equity
= 100 × ÷ =
The financial data reflects notable changes over the reported five-year period, revealing distinct trends in both income and return metrics.
- Net Income Trends
- Reported net income exhibited a positive growth trajectory from 2019 through 2021, increasing significantly from approximately 467 million US dollars in 2019 to over 1 billion US dollars in 2021. However, this upward trend reversed sharply from 2022 onward, with reported net income declining to about 715 million US dollars in 2022 and further down to approximately 449 million US dollars in 2023. Adjusted net income followed a very similar pattern, reaching its peak in 2021 and experiencing substantial decreases in 2022 and 2023, closely mirroring the reported income values.
- Return on Equity (ROE) Analysis
- Both reported and adjusted ROE values increased from 2019 to their peak around 2021, indicating improving profitability and efficient use of equity during this period. Reported ROE reached nearly 40% in 2021 before falling to just under 30% in 2022 and approximately 18% in 2023. Adjusted ROE largely parallels the reported values, peaking in 2021 and then declining through 2022 and 2023, albeit with slightly lower values in the later two years in comparison to reported ROE.
- Insights and Summary
- The data suggests the company experienced strong performance gains leading up to 2021, followed by a noticeable downturn in subsequent years. The consistent pattern between reported and adjusted figures implies limited impact from exceptional or one-time adjustments on overall profitability trends. The decline in ROE alongside net income points to reduced returns on equity investment, which may warrant attention to operational efficiency, market conditions, or other underlying factors influencing profitability after 2021.
Adjusted Return on Assets (ROA)
Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).
2023 Calculations
1 ROA = 100 × Net income ÷ Total assets
= 100 × ÷ =
2 Adjusted ROA = 100 × Adjusted net income ÷ Total assets
= 100 × ÷ =
The financial data presents a comprehensive view of the company's profitability and return on assets over a five-year period ending in 2023. Both reported and adjusted net income figures indicate significant fluctuations, which provide insights into the company’s operational and financial performance trends.
- Net Income Trends
- Reported net income shows a strong upward trajectory from 2019 through 2021, increasing from approximately $467 million to over $1 billion. However, this positive growth trend reverses in 2022 and continues declining into 2023, with net income decreasing to $715 million and further down to roughly $449 million, respectively.
- Adjusted net income follows a similar pattern, closely mirroring the reported figures throughout the period. This suggests that adjustments to net income do not dramatically alter the overall profitability trend and imply consistency in the company’s underlying performance.
- Return on Assets (ROA) Trends
- The reported ROA percentage demonstrates strong improvement from 2019 to 2021, moving from 16.77% up to a peak of 26.63%. Following this peak, a notable decline occurs in 2022, with ROA dropping to just over 20%, and further decreasing in 2023 to below 13%. This pattern closely aligns with the changes in net income, reflecting the impact of profitability on asset returns.
- Adjusted ROA percentages maintain a consistent proximity to reported ROA, confirming the stability of asset returns after adjustment. The similarity between reported and adjusted ROA percentages supports the reliability of the reported performance metrics.
- Overall Insights
- The data illustrates a period of accelerated growth and improved profitability performance through 2021, followed by a contraction phase in the subsequent two years. The substantial decline in both net income and ROA in 2022 and 2023 indicates potential challenges that could be linked to market conditions, operational costs, or other external factors affecting profitability. The consistency between reported and adjusted figures suggests that extraordinary items or accounting adjustments have a limited impact on the overall trends observed.