Name: Teradyne Inc. (NASDAQ:TER) | Common-Size Income Statement (Quarterly)
Creator: Stock Analysis on Net

Common-Size Income Statement
Quarterly Data

Teradyne Inc., common-size consolidated income statement (quarterly data)

3 months ended:	Mar 31, 2024	Dec 31, 2023	Oct 1, 2023	Jul 2, 2023	Apr 2, 2023	Dec 31, 2022	Oct 2, 2022	Jul 3, 2022	Apr 3, 2022	Dec 31, 2021	Oct 3, 2021	Jul 4, 2021	Apr 4, 2021	Dec 31, 2020	Sep 27, 2020	Jun 28, 2020	Mar 29, 2020	Dec 31, 2019	Sep 29, 2019	Jun 30, 2019	Mar 31, 2019
Products	76.43%	79.11%	78.44%	78.95%	76.66%	80.82%	81.76%	83.01%	82.86%	85.72%	86.84%	87.68%	84.51%	85.33%	85.14%	87.60%	86.73%	83.79%	83.87%	81.09%	79.63%
Services	23.57%	20.89%	21.56%	21.05%	23.34%	19.18%	18.24%	16.99%	17.14%	14.28%	13.16%	12.32%	15.49%	14.67%	14.86%	12.40%	13.27%	16.21%	16.13%	18.91%	20.37%
Revenues	100.00%	100.00%	100.00%	100.00%	100.00%	100.00%	100.00%	100.00%	100.00%	100.00%	100.00%	100.00%	100.00%	100.00%	100.00%	100.00%	100.00%	100.00%	100.00%	100.00%	100.00%
Cost of products	-33.47%	-33.91%	-34.08%	-31.71%	-32.17%	-33.80%	-33.56%	-32.67%	-32.17%	-35.05%	-35.06%	-35.81%	-34.26%	-36.18%	-36.63%	-38.48%	-36.91%	-34.55%	-33.88%	-34.26%	-33.47%
Cost of services	-9.97%	-9.49%	-9.32%	-9.49%	-10.11%	-8.75%	-7.76%	-7.10%	-7.60%	-5.40%	-4.87%	-4.60%	-6.68%	-4.56%	-7.37%	-5.30%	-5.51%	-6.91%	-6.84%	-8.32%	-8.32%
Cost of revenues, exclusive of acquired intangible assets amortization	-43.44%	-43.40%	-43.40%	-41.19%	-42.28%	-42.55%	-41.31%	-39.77%	-39.77%	-40.45%	-39.93%	-40.41%	-40.94%	-40.74%	-44.00%	-43.78%	-42.42%	-41.46%	-40.72%	-42.59%	-41.79%
Gross profit	56.56%	56.60%	56.60%	58.81%	57.72%	57.45%	58.69%	60.23%	60.23%	59.55%	60.07%	59.59%	59.06%	59.26%	56.00%	56.22%	57.58%	58.54%	59.28%	57.41%	58.21%
Selling and administrative	-24.87%	-21.23%	-19.66%	-21.29%	-24.45%	-19.51%	-16.40%	-16.60%	-18.56%	-16.13%	-14.19%	-12.91%	-16.61%	-16.38%	-14.14%	-13.50%	-15.81%	-17.89%	-18.76%	-19.29%	-20.65%
Engineering and development	-17.21%	-15.24%	-14.84%	-15.44%	-17.13%	-14.87%	-13.51%	-13.32%	-14.31%	-12.42%	-11.28%	-10.13%	-12.85%	-13.28%	-11.58%	-11.22%	-12.09%	-13.26%	-13.37%	-14.43%	-15.54%
Acquired intangible assets amortization	-0.78%	-0.69%	-0.67%	-0.70%	-0.78%	-0.64%	-0.57%	-0.58%	-0.67%	-0.58%	-0.56%	-0.50%	-0.71%	-0.76%	-0.76%	-1.07%	-1.40%	-1.49%	-1.66%	-1.79%	-2.15%
Restructuring and other	-0.74%	-0.90%	-0.97%	-0.93%	-0.33%	0.32%	-0.22%	-0.24%	-2.08%	-1.44%	-0.13%	-0.23%	0.91%	1.99%	3.38%	-4.44%	1.08%	0.32%	1.12%	1.84%	-1.03%
Operating expenses	-43.60%	-38.06%	-36.14%	-38.36%	-42.68%	-34.69%	-30.70%	-30.73%	-35.62%	-30.58%	-26.15%	-23.77%	-29.25%	-28.42%	-23.10%	-30.23%	-28.23%	-32.32%	-32.66%	-33.66%	-39.37%
Income from operations	12.97%	18.54%	20.46%	20.44%	15.04%	22.76%	27.99%	29.50%	24.60%	28.97%	33.92%	35.82%	29.81%	30.84%	32.91%	25.99%	29.35%	26.22%	26.62%	23.75%	18.84%
Interest income	1.31%	1.32%	0.98%	0.93%	0.85%	0.47%	0.16%	0.11%	0.09%	0.06%	0.07%	0.06%	0.10%	0.10%	0.13%	0.16%	0.39%	0.94%	0.89%	0.96%	1.63%
Interest expense	-0.11%	-0.12%	-0.14%	-0.15%	-0.16%	-0.14%	-0.09%	-0.11%	-0.13%	-0.28%	-0.40%	-0.51%	-0.77%	-0.84%	-0.76%	-0.72%	-0.79%	-0.91%	-0.98%	-1.03%	-1.16%
Other income (expense), net	-2.01%	1.11%	-0.80%	-0.12%	-0.01%	3.59%	-0.71%	-1.12%	-0.69%	0.07%	-2.26%	0.01%	-0.49%	-0.74%	-0.09%	0.48%	-0.97%	-3.51%	-0.46%	-0.43%	-0.29%
Non-operating income (expense)	-0.81%	2.31%	0.04%	0.66%	0.68%	3.91%	-0.64%	-1.12%	-0.73%	-0.14%	-2.59%	-0.45%	-1.15%	-1.47%	-0.72%	-0.08%	-1.37%	-3.48%	-0.55%	-0.50%	0.18%
Income before income taxes	12.15%	20.85%	20.50%	21.10%	15.72%	26.68%	27.35%	28.38%	23.88%	28.83%	31.33%	35.37%	28.66%	29.37%	32.18%	25.91%	27.98%	22.74%	26.07%	23.25%	19.02%
Income tax (provision) benefit	-1.45%	-3.39%	-2.30%	-3.56%	-2.19%	-3.13%	-5.16%	-4.85%	-2.44%	-3.52%	-4.32%	-5.13%	-2.36%	-3.50%	-5.00%	-3.38%	-2.96%	-3.64%	-2.73%	-5.99%	3.07%
Net income	10.70%	17.46%	18.21%	17.54%	13.53%	23.54%	22.18%	23.52%	21.44%	25.31%	27.01%	30.24%	26.29%	25.87%	27.18%	22.52%	25.01%	19.11%	23.34%	17.26%	22.09%

Analysis of the common-size income statement reveals a significant shift in revenue composition and a compression of operating margins over the observed period from March 2019 to March 2024. While gross profit margins remained relatively stable, a marked increase in operating expenses has led to a downward trend in both operating and net income margins.

Revenue Mix and Composition: A structural shift in revenue streams is evident. Product revenues, which peaked at 87.60% in June 2020, have declined to 76.43% by March 2024. Conversely, service revenues have expanded from a low of 12.32% in July 2021 to a period high of 23.57% in March 2024. This indicates an increasing reliance on services as a proportion of total revenue.
Gross Profitability and Cost of Revenue: Gross profit margins exhibited relative resilience, generally fluctuating between 56% and 60%. The peak margin of 60.23% was achieved in mid-2022. However, the cost of services as a percentage of revenue has trended upward, rising from 4.60% in July 2021 to 9.97% in March 2024, mirroring the growth in service revenue. The cost of products has remained more stable, hovering around 32% to 35%.
Operating Expense Trends: Operating expenses have exerted significant downward pressure on profitability. Total operating expenses rose from a low of 23.10% in September 2020 to 43.60% in March 2024. This increase is primarily driven by Selling and Administrative expenses, which climbed from 12.91% in July 2021 to 24.87% in March 2024, and Engineering and Development costs, which increased from 10.13% in July 2021 to 17.21% in March 2024.
Operating and Net Income Performance: Income from operations showed strong growth in 2020 and 2021, peaking at 35.82% in July 2021. Following this peak, a consistent decline is observed, with operating income falling to 12.97% by March 2024. Net income margins followed a similar trajectory, reaching a peak of 30.24% in July 2021 before contracting to 10.70% in the final quarter of the analysis.
Non-Operating Items and Taxation: Interest income has trended upward, increasing from 0.10% in late 2020 to 1.31% by March 2024, while interest expenses have steadily decreased from 1.16% in March 2019 to 0.11% in March 2024. Income tax provisions have generally remained as a benefit (negative percentage) throughout the majority of the period, though the impact varies by quarter.

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Teradyne Inc. (NASDAQ:TER)

Common-Size Income StatementQuarterly Data

Common-Size Income Statement
Quarterly Data