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
The operating profit margin from 2005 to 2023 is characterized by extreme volatility in the first decade, followed by a period of significant expansion and a recent contraction.
- Period of High Volatility (2005–2009)
- The initial five-year window exhibited severe fluctuations, with margins oscillating between modest profitability and deep operational losses. A significant nadir occurred in 2008, when the operating profit margin dropped to -34.72%, indicating a period of substantial operational distress relative to revenue.
- Inconsistent Recovery Phase (2010–2016)
- Operational efficiency showed signs of recovery starting in 2010 with a margin of 25.70%, yet consistency remained elusive. The margin trended downward to 5.85% by 2014, experienced a brief rebound to 14.82% in 2015, and returned to negative territory in 2016 at -3.42%.
- Sustained Expansion and Peak Efficiency (2017–2021)
- A period of strong, sustained growth began in 2017, with operating margins remaining consistently above 22%. This trend culminated in a historical peak of 32.43% in 2021, which coincided with the highest revenue levels recorded in the analyzed timeframe, suggesting high operational leverage.
- Recent Margin Contraction (2022–2023)
- Following the 2021 peak, a downward trajectory is evident. The operating profit margin compressed to 26.37% in 2022 and further declined to 18.72% by the end of 2023, paralleling a reduction in overall revenue.
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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. | Marvell Technology Inc. | 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% | 4.02% | -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% | -7.79% | 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% | -8.70% | 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% | -9.02% | 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% | 1.51% | 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% | 17.84% | 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% | 4.31% | 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% | -29.96% | 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% | 11.03% | 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% | 8.24% | 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% | 9.30% | 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% | 17.81% | -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% | 24.95% | 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% | 11.90% | 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% | 5.60% | -34.87% | -2.06% | 21.37% | 19.09% |
| Dec 31, 2008 | -34.72% | -33.66% | 24.20% | 16.67% | — | 23.82% | 20.58% | -3.65% | -27.31% | 20.41% | 33.48% | 19.49% |
| Dec 31, 2007 | 3.83% | -47.65% | 22.24% | 24.36% | — | 21.43% | 30.34% | 0.05% | -4.92% | 14.78% | 32.50% | 25.28% |
| Dec 31, 2006 | 14.30% | -0.83% | 21.44% | 22.04% | — | 15.97% | 24.74% | 21.54% | 6.64% | 14.32% | 35.74% | 23.62% |
| Dec 31, 2005 | -7.60% | 3.96% | 21.60% | 20.71% | — | 31.14% | 26.02% | 13.22% | 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).