Net Profit Margin
since 2005
Calculation
Teradyne Inc., net profit margin, long-term trends, calculation
| Net profit margin | = | 100 | × | Net income (loss)1 | ÷ | Revenues1 | |
|---|---|---|---|---|---|---|---|
| Dec 31, 2023 | 16.77% | = | 100 | × | 448,752) | ÷ | 2,676,298) |
| Dec 31, 2022 | 22.68% | = | 100 | × | 715,501) | ÷ | 3,155,045) |
| Dec 31, 2021 | 27.40% | = | 100 | × | 1,014,589) | ÷ | 3,702,881) |
| Dec 31, 2020 | 25.12% | = | 100 | × | 784,147) | ÷ | 3,121,469) |
| Dec 31, 2019 | 20.37% | = | 100 | × | 467,468) | ÷ | 2,294,965) |
| Dec 31, 2018 | 21.51% | = | 100 | × | 451,779) | ÷ | 2,100,802) |
| Dec 31, 2017 | 12.06% | = | 100 | × | 257,692) | ÷ | 2,136,606) |
| Dec 31, 2016 | -2.48% | = | 100 | × | (43,421) | ÷ | 1,753,250) |
| Dec 31, 2015 | 12.59% | = | 100 | × | 206,477) | ÷ | 1,639,578) |
| Dec 31, 2014 | 4.93% | = | 100 | × | 81,272) | ÷ | 1,647,824) |
| Dec 31, 2013 | 11.55% | = | 100 | × | 164,947) | ÷ | 1,427,933) |
| Dec 31, 2012 | 13.10% | = | 100 | × | 217,049) | ÷ | 1,656,750) |
| Dec 30, 2011 | 26.16% | = | 100 | × | 373,809) | ÷ | 1,429,061) |
| Dec 31, 2010 | 23.61% | = | 100 | × | 379,730) | ÷ | 1,608,650) |
| Dec 31, 2009 | -16.33% | = | 100 | × | (133,837) | ÷ | 819,407) |
| Dec 31, 2008 | -35.94% | = | 100 | × | (397,834) | ÷ | 1,107,042) |
| Dec 31, 2007 | 7.05% | = | 100 | × | 77,711) | ÷ | 1,102,280) |
| Dec 31, 2006 | 14.44% | = | 100 | × | 198,757) | ÷ | 1,376,818) |
| Dec 31, 2005 | 8.43% | = | 100 | × | 90,648) | ÷ | 1,075,232) |
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), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-30), 10-K (reporting date: 2010-12-31), 10-K (reporting date: 2009-12-31), 10-K (reporting date: 2008-12-31), 10-K (reporting date: 2007-12-31), 10-K (reporting date: 2006-12-31), 10-K (reporting date: 2005-12-31).
1 US$ in thousands
The financial performance of the entity from 2005 to 2023 is characterized by significant volatility in net profit margins, alternating between periods of severe contraction and robust expansion.
- Periods of Financial Instability and Contraction
- A substantial decline in profitability occurred between 2008 and 2009, with net profit margins falling to -35.94% and -16.33%, respectively. These years represent the most significant losses in the observed period, with net income dropping to negative US$397.8 million in 2008. A second, though less severe, instance of negative profitability was recorded in 2016, where the net profit margin reached -2.48% despite revenues reaching US$1.75 billion.
- Growth and Peak Profitability Phase
- Following the 2016 downturn, a sustained upward trend in profitability was observed from 2017 through 2021. The net profit margin climbed steadily from 12.06% in 2017 to a peak of 27.40% in 2021. This period coincided with a substantial increase in both revenues and net income, with net income peaking at approximately US$1.01 billion in 2021, indicating strong operational efficiency and scaling capabilities.
- Recent Performance and Margin Compression
- Since the 2021 peak, a downward trend in both revenue and profitability has emerged. Revenues declined from US$3.70 billion in 2021 to US$2.68 billion by 2023. Concurrently, the net profit margin compressed from 27.40% in 2021 to 22.68% in 2022, and further decreased to 16.77% by the end of 2023. This indicates a reduction in the percentage of revenue retained as profit during the most recent two-year cycle.
- Revenue and Income Correlation
- The correlation between revenue growth and net profit margin has been inconsistent. For example, between 2010 and 2011, revenues decreased while the net profit margin increased from 23.61% to 26.16%. Conversely, the 2017-2021 period showed a strong positive correlation where increasing revenues directly supported expanding profit margins.
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Comparison to Competitors
Teradyne Inc., net profit margin, long-term trends, comparison to competitors
| Teradyne Inc. | Advanced Micro Devices Inc. | Analog Devices Inc. | Applied Materials Inc. | Broadcom Inc. | Intel Corp. | KLA Corp. | Lam Research Corp. | Marvell Technology Inc. | Micron Technology Inc. | NVIDIA Corp. | Qualcomm Inc. | Texas Instruments Inc. | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Dec 31, 2023 | 16.77% | 3.77% | 26.94% | 25.86% | 39.31% | 3.11% | 32.27% | 25.88% | -2.76% | -37.54% | 16.19% | 20.19% | 37.16% |
| Dec 31, 2022 | 22.68% | 5.59% | 22.88% | 25.31% | 34.62% | 12.71% | 36.06% | 26.73% | -9.44% | 28.24% | 36.23% | 29.27% | 43.68% |
| Dec 31, 2021 | 27.40% | 19.24% | 19.00% | 25.53% | 24.54% | 25.14% | 30.04% | 26.72% | -9.34% | 21.16% | 25.98% | 26.94% | 42.35% |
| Dec 31, 2020 | 25.12% | 25.50% | 21.79% | 21.04% | 12.39% | 26.84% | 20.96% | 22.42% | 58.70% | 12.54% | 25.61% | 22.09% | 38.69% |
| Dec 31, 2019 | 20.37% | 5.07% | 22.75% | 18.52% | 12.05% | 29.25% | 25.73% | 22.70% | -6.25% | 26.97% | 35.34% | 18.07% | 34.88% |
| Dec 31, 2018 | 21.51% | 5.20% | 24.12% | 19.20% | 58.80% | 29.72% | 19.87% | 21.49% | 21.62% | 46.51% | 31.37% | -21.40% | 35.35% |
| Dec 31, 2017 | 12.06% | 0.81% | 14.24% | 23.62% | 9.59% | 15.30% | 26.61% | 21.19% | 0.91% | 25.04% | 24.11% | 11.06% | 24.61% |
| Dec 31, 2016 | -2.48% | -11.63% | 25.18% | 15.90% | -13.13% | 17.37% | 23.60% | 15.53% | -29.77% | -2.23% | 12.26% | 24.22% | 26.89% |
| Dec 31, 2015 | 12.59% | -16.54% | 20.29% | 14.26% | 19.99% | 20.63% | 13.01% | 12.47% | 11.74% | 17.90% | 13.47% | 20.85% | 22.97% |
| Dec 31, 2014 | 4.93% | -7.32% | 21.97% | 11.82% | 6.16% | 20.95% | 19.89% | 13.72% | 9.26% | 18.61% | 10.65% | 30.08% | 21.63% |
| Dec 31, 2013 | 11.55% | -1.57% | 25.57% | 3.41% | 21.90% | 18.25% | 19.11% | 3.16% | 9.68% | 13.12% | 13.14% | 27.56% | 17.71% |
| Dec 31, 2012 | 13.10% | -21.82% | 24.11% | 1.25% | 23.82% | 20.63% | 23.83% | 6.33% | 18.13% | -12.53% | 14.53% | 31.95% | 13.72% |
| Dec 30, 2011 | 26.16% | 7.48% | 28.98% | 18.31% | 23.63% | 23.97% | 25.02% | 22.35% | 25.03% | 1.90% | 7.14% | 28.48% | 16.28% |
| Dec 31, 2010 | 23.61% | 7.25% | 25.79% | 9.82% | 19.83% | 26.28% | 11.66% | 16.25% | 12.59% | 21.81% | -2.04% | 29.54% | 23.11% |
| Dec 31, 2009 | -16.33% | 5.63% | 12.30% | -6.09% | -2.96% | 12.44% | -34.43% | -27.08% | 4.99% | -38.21% | -0.88% | 15.28% | 14.10% |
| Dec 31, 2008 | -35.94% | -53.34% | 30.44% | 11.82% | — | 14.08% | 14.24% | 17.75% | -3.95% | -27.72% | 19.46% | 28.36% | 15.36% |
| Dec 31, 2007 | 7.05% | -56.19% | 19.52% | 17.57% | — | 18.20% | 19.34% | 26.72% | -0.54% | -5.63% | 14.63% | 37.23% | 19.20% |
| Dec 31, 2006 | 14.44% | -2.94% | 21.35% | 16.54% | — | 14.26% | 18.37% | 20.45% | 19.84% | 7.74% | 12.74% | 32.82% | 30.45% |
| Dec 31, 2005 | 8.43% | 2.83% | 17.36% | 17.30% | — | 22.31% | 22.38% | 19.92% | 11.57% | 3.85% | 4.99% | 37.78% | 17.35% |
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), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-30), 10-K (reporting date: 2010-12-31), 10-K (reporting date: 2009-12-31), 10-K (reporting date: 2008-12-31), 10-K (reporting date: 2007-12-31), 10-K (reporting date: 2006-12-31), 10-K (reporting date: 2005-12-31).
Comparison to Sector (Semiconductors & Semiconductor Equipment)
Teradyne Inc., net profit margin, long-term trends, comparison to sector (semiconductors & semiconductor equipment)
| Teradyne Inc. | Semiconductors & Semiconductor Equipment | |
|---|---|---|
| Dec 31, 2023 | 16.77% | 16.64% |
| Dec 31, 2022 | 22.68% | 25.04% |
| Dec 31, 2021 | 27.40% | 25.45% |
| Dec 31, 2020 | 25.12% | 23.53% |
| Dec 31, 2019 | 20.37% | 24.08% |
| Dec 31, 2018 | 21.51% | 27.58% |
| Dec 31, 2017 | 12.06% | 16.90% |
| Dec 31, 2016 | -2.48% | 13.44% |
| Dec 31, 2015 | 12.59% | 18.27% |
| Dec 31, 2014 | 4.93% | 19.57% |
| Dec 31, 2013 | 11.55% | 17.41% |
| Dec 31, 2012 | 13.10% | 15.96% |
| Dec 30, 2011 | 26.16% | 20.49% |
| Dec 31, 2010 | 23.61% | 21.44% |
| Dec 31, 2009 | -16.33% | 6.08% |
| Dec 31, 2008 | -35.94% | 9.29% |
| Dec 31, 2007 | 7.05% | 13.69% |
| Dec 31, 2006 | 14.44% | 17.71% |
| Dec 31, 2005 | 8.43% | 19.00% |
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), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-30), 10-K (reporting date: 2010-12-31), 10-K (reporting date: 2009-12-31), 10-K (reporting date: 2008-12-31), 10-K (reporting date: 2007-12-31), 10-K (reporting date: 2006-12-31), 10-K (reporting date: 2005-12-31).
Comparison to Industry (Information Technology)
Teradyne Inc., net profit margin, long-term trends, comparison to industry (information technology)
| Teradyne Inc. | Information Technology | |
|---|---|---|
| Dec 31, 2023 | 16.77% | 20.24% |
| Dec 31, 2022 | 22.68% | 22.27% |
| Dec 31, 2021 | 27.40% | 23.48% |
| Dec 31, 2020 | 25.12% | 19.76% |
| Dec 31, 2019 | 20.37% | 19.73% |
| Dec 31, 2018 | 21.51% | 18.59% |
| Dec 31, 2017 | 12.06% | 17.77% |
| Dec 31, 2016 | -2.48% | 17.58% |
| Dec 31, 2015 | 12.59% | 18.32% |
| Dec 31, 2014 | 4.93% | 19.33% |
| Dec 31, 2013 | 11.55% | 20.15% |
| Dec 31, 2012 | 13.10% | 20.07% |
| Dec 30, 2011 | 26.16% | 20.71% |
| Dec 31, 2010 | 23.61% | 20.19% |
| Dec 31, 2009 | -16.33% | 14.45% |
| Dec 31, 2008 | -35.94% | 15.07% |
| Dec 31, 2007 | 7.05% | 15.71% |
| Dec 31, 2006 | 14.44% | 16.26% |
| Dec 31, 2005 | 8.43% | 16.64% |
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), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-30), 10-K (reporting date: 2010-12-31), 10-K (reporting date: 2009-12-31), 10-K (reporting date: 2008-12-31), 10-K (reporting date: 2007-12-31), 10-K (reporting date: 2006-12-31), 10-K (reporting date: 2005-12-31).