Teradyne Inc (TER)
Profitability ratios
Return on sales
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Gross profit margin | 58.48% | 57.42% | 59.18% | 59.59% | 57.21% |
| Operating profit margin | 21.06% | 18.72% | 26.37% | 32.64% | 29.74% |
| Pretax margin | 21.60% | 19.64% | 26.64% | 31.57% | 28.87% |
| Net profit margin | 19.23% | 16.77% | 22.68% | 27.40% | 25.12% |
Teradyne Inc's profitability ratios demonstrate fluctuations over the five-year period from 2020 to 2024.
- The Gross Profit Margin has shown an overall increasing trend, starting at 57.21% in 2020 and reaching 58.48% in 2024. This indicates the company's ability to efficiently manage production costs and pricing strategies.
- The Operating Profit Margin experienced variability, with a peak of 32.64% in 2021 and a decline to 18.72% in 2023 before recovering to 21.06% in 2024. This suggests fluctuations in operating expenses and efficiency in generating profits from core business operations.
- The Pretax Margin has also shown fluctuations, starting at 28.87% in 2020, peaking at 31.57% in 2021, and then declining to 19.64% in 2023, before slightly increasing to 21.60% in 2024. This reflects the company's ability to manage taxes and other non-operating expenses.
- The Net Profit Margin followed a similar trend, starting at 25.12% in 2020, reaching its peak at 27.40% in 2021, and declining to 16.77% in 2023, before increasing to 19.23% in 2024. This ratio indicates the company's overall profitability after accounting for all expenses, including taxes and interest.
In conclusion, while Teradyne Inc has shown fluctuations in its profitability margins over the years, the company has managed to maintain a relatively healthy level of profitability, showcasing its ability to adapt to changing market conditions and effectively manage expenses.
Return on investment
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 16.01% | 14.37% | 23.76% | 31.74% | 25.42% |
| Return on assets (ROA) | 14.62% | 12.87% | 20.44% | 26.65% | 21.47% |
| Return on total capital | 0.00% | 19.84% | 34.44% | 45.89% | 41.92% |
| Return on equity (ROE) | 14.62% | 17.77% | 29.19% | 39.50% | 35.53% |
Teradyne Inc's profitability ratios show a fluctuating trend over the years.
1. Operating return on assets (Operating ROA) increased from 25.42% in 2020 to 31.74% in 2021, indicating the company's ability to generate operating profits from its assets. However, there was a decline to 23.76% in 2022 and a further drop to 14.37% in 2023, which may raise concerns about operational efficiency. The ratio improved slightly to 16.01% in 2024.
2. Return on assets (ROA) also followed a similar pattern, starting at 21.47% in 2020 and rising to 26.65% in 2021. However, there was a decrease to 20.44% in 2022 and a significant drop to 12.87% in 2023. The ratio slightly recovered to 14.62% in 2024.
3. Return on total capital saw a steady decrease over the years, from 41.92% in 2020 to 0.00% in 2024. This significant drop indicates a decline in the company's ability to generate returns from all capital sources.
4. Return on equity (ROE) also showed a declining trend, starting at 35.53% in 2020 and decreasing to 14.62% in 2024. This suggests a decrease in profitability for the company's shareholders over the years.
Overall, Teradyne Inc's profitability ratios demonstrate mixed performance, with some ratios showing improvement while others experienced significant declines. Investors and analysts should closely monitor these trends to assess the company's financial health and performance.