Teradyne Inc (TER)

Gross profit margin

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Gross profit	US$ in thousands	1,536,750	1,867,150	2,206,660	1,785,740	1,339,830
Revenue	US$ in thousands	2,676,300	3,155,040	3,702,880	3,121,470	2,294,960
Gross profit margin		57.42%	59.18%	59.59%	57.21%	58.38%

December 31, 2023 calculation

Gross profit margin = Gross profit ÷ Revenue
= $1,536,750K ÷ $2,676,300K
= 57.42%

Teradyne, Inc.'s gross profit margin has exhibited some fluctuations over the past five years. The margin decreased from 58.38% in 2019 to 57.21% in 2020 but then increased to 59.59% in 2021 before slightly declining to 59.18% in 2022 and further to 57.42% in 2023. Overall, the trend indicates some variability in the company's ability to generate profits from its core operations.

A declining gross profit margin could be attributed to various factors such as increased production costs, pricing pressures, or changes in product mix. Conversely, an increasing margin suggests improved cost management or pricing strategies. It is important for investors and analysts to closely monitor these changes in the gross profit margin as it can provide insights into the company's operational efficiency and competitiveness within its industry.