Operating Profit Margin
since 2005
Calculation
Teradyne Inc., operating profit margin, long-term trends, calculation
| Operating profit margin | = | 100 | × | Income (loss) from operations1 | ÷ | Revenues1 | |
|---|---|---|---|---|---|---|---|
| Dec 31, 2023 | 18.72% | = | 100 | × | 501,068) | ÷ | 2,676,298) |
| Dec 31, 2022 | 26.37% | = | 100 | × | 831,939) | ÷ | 3,155,045) |
| Dec 31, 2021 | 32.43% | = | 100 | × | 1,200,720) | ÷ | 3,702,881) |
| Dec 31, 2020 | 29.74% | = | 100 | × | 928,407) | ÷ | 3,121,469) |
| Dec 31, 2019 | 24.12% | = | 100 | × | 553,654) | ÷ | 2,294,965) |
| Dec 31, 2018 | 22.55% | = | 100 | × | 473,797) | ÷ | 2,100,802) |
| Dec 31, 2017 | 24.81% | = | 100 | × | 530,028) | ÷ | 2,136,606) |
| Dec 31, 2016 | -3.42% | = | 100 | × | (60,015) | ÷ | 1,753,250) |
| Dec 31, 2015 | 14.82% | = | 100 | × | 242,969) | ÷ | 1,639,578) |
| Dec 31, 2014 | 5.85% | = | 100 | × | 96,423) | ÷ | 1,647,824) |
| Dec 31, 2013 | 13.35% | = | 100 | × | 190,659) | ÷ | 1,427,933) |
| Dec 31, 2012 | 17.35% | = | 100 | × | 287,368) | ÷ | 1,656,750) |
| Dec 30, 2011 | 16.49% | = | 100 | × | 235,714) | ÷ | 1,429,061) |
| Dec 31, 2010 | 25.70% | = | 100 | × | 413,468) | ÷ | 1,608,650) |
| Dec 31, 2009 | -14.94% | = | 100 | × | (122,421) | ÷ | 819,407) |
| Dec 31, 2008 | -34.72% | = | 100 | × | (384,347) | ÷ | 1,107,042) |
| Dec 31, 2007 | 3.83% | = | 100 | × | 42,207) | ÷ | 1,102,280) |
| Dec 31, 2006 | 14.30% | = | 100 | × | 196,831) | ÷ | 1,376,818) |
| Dec 31, 2005 | -7.60% | = | 100 | × | (81,698) | ÷ | 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
- Revenue Trend
- Revenues exhibit fluctuations over the analyzed period, initially rising from approximately 1.07 billion USD in 2005 to a high above 1.6 billion USD by 2010. Subsequently, revenues peak significantly in 2021 at over 3.7 billion USD before declining in the last two years to roughly 2.68 billion USD in 2023. This pattern indicates a general growth trajectory with notable volatility and a recent downward adjustment.
- Operating Income (Loss) Trend
- The income from operations shows considerable variability, marked by periods of losses and profits. Initial losses in 2005 and 2008 indicate operational challenges during these years. Post-2008, operating income mostly remains positive, reaching a peak near 1.2 billion USD in 2021. However, the operating income diminishes sharply by 2023, reflecting reduced profitability despite generally high revenue levels. These swings suggest sensitive operational performance subject to market or internal factors.
- Operating Profit Margin
- The operating profit margin reveals significant volatility, starting negative at -7.6% in 2005, peaking at 32.43% in 2021, and declining thereafter to approximately 18.72% in 2023. The margin dipped dramatically into negative territory during 2008 and 2009, aligning with operational losses in those years. Positive margins from 2010 onwards depict improved operational efficiency, although recent decreases indicate either rising costs or margin pressures.
- Overall Insights
- The data illustrate a cyclical pattern with phases of robust growth and profitability interspersed with periods of financial stress. The strong growth in revenues and operating income up to 2021 suggests successful expansion or favorable market conditions. The subsequent declines in both revenues and operating margin highlight emerging challenges that may affect future performance. Careful attention to cost management and revenue quality will be important to sustain profitability going forward.
Comparison to Competitors
Teradyne Inc., operating profit margin, long-term trends, comparison to competitors
| Teradyne Inc. | Advanced Micro Devices Inc. | Analog Devices Inc. | Applied Materials Inc. | Broadcom Inc. | Intel Corp. | Lam Research Corp. | Micron Technology Inc. | NVIDIA Corp. | Qualcomm Inc. | Texas Instruments Inc. | |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Dec 31, 2023 | 18.72% | 1.77% | 31.07% | 28.86% | 45.25% | 0.17% | 29.69% | -36.97% | 15.66% | 21.74% | 41.85% |
| Dec 31, 2022 | 26.37% | 5.36% | 27.29% | 30.20% | 42.84% | 3.70% | 31.24% | 31.54% | 37.31% | 35.88% | 50.63% |
| Dec 31, 2021 | 32.43% | 22.20% | 23.12% | 29.87% | 31.03% | 24.62% | 30.64% | 22.68% | 27.18% | 29.16% | 48.84% |
| Dec 31, 2020 | 29.74% | 14.02% | 26.74% | 25.37% | 16.80% | 30.41% | 26.62% | 14.01% | 26.07% | 26.58% | 40.76% |
| Dec 31, 2019 | 24.12% | 9.37% | 28.55% | 22.93% | 15.24% | 30.62% | 25.53% | 31.51% | 32.47% | 31.59% | 39.79% |
| Dec 31, 2018 | 22.55% | 6.97% | 30.35% | 27.80% | 24.63% | 32.91% | 29.01% | 49.34% | 33.05% | 3.26% | 42.53% |
| Dec 31, 2017 | 24.81% | 3.83% | 20.66% | 26.61% | 13.51% | 28.58% | 23.74% | 28.88% | 27.99% | 11.73% | 40.66% |
| Dec 31, 2016 | -3.42% | -8.71% | 30.05% | 19.88% | -3.09% | 21.68% | 18.25% | 1.35% | 14.91% | 27.57% | 35.89% |
| Dec 31, 2015 | 14.82% | -12.05% | 24.19% | 17.53% | 23.92% | 25.29% | 14.98% | 18.52% | 16.21% | 22.85% | 32.88% |
| Dec 31, 2014 | 5.85% | -2.82% | 26.27% | 16.75% | 10.26% | 27.47% | 14.71% | 18.87% | 12.01% | 28.50% | 30.26% |
| Dec 31, 2013 | 13.35% | 1.94% | 28.59% | 5.75% | 21.90% | 23.32% | 3.28% | 2.60% | 15.15% | 29.08% | 23.20% |
| Dec 31, 2012 | 17.35% | -19.48% | 30.51% | 4.71% | 24.62% | 27.44% | 8.92% | -7.51% | 16.22% | 29.72% | 15.38% |
| Dec 30, 2011 | 16.49% | 5.60% | 35.81% | 22.80% | 25.00% | 32.37% | 24.84% | 8.59% | 7.22% | 33.60% | 21.78% |
| Dec 31, 2010 | 25.70% | 13.06% | 32.59% | 14.49% | 22.26% | 35.73% | 19.94% | 18.73% | -2.97% | 29.87% | 32.32% |
| Dec 31, 2009 | -14.94% | 12.29% | 14.14% | -7.85% | 3.23% | 16.26% | -25.20% | -34.87% | -2.06% | 21.37% | 19.09% |
| Dec 31, 2008 | -34.72% | -33.66% | 24.20% | 16.67% | — | 23.82% | 20.58% | -27.31% | 20.41% | 33.48% | 19.49% |
| Dec 31, 2007 | 3.83% | -47.65% | 22.24% | 24.36% | — | 21.43% | 30.34% | -4.92% | 14.78% | 32.50% | 25.28% |
| Dec 31, 2006 | 14.30% | -0.83% | 21.44% | 22.04% | — | 15.97% | 24.74% | 6.64% | 14.32% | 35.74% | 23.62% |
| Dec 31, 2005 | -7.60% | 3.96% | 21.60% | 20.71% | — | 31.14% | 26.02% | 4.46% | 5.65% | 42.06% | 20.84% |
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).