Teradyne Inc (TER)

Gross profit margin

		Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Gross profit (ttm)	US$ in thousands	1,536,747	1,577,653	1,664,741	1,768,638	1,867,151	1,973,749	2,059,371	2,199,971	2,206,656	2,129,397	2,017,324	1,841,808	1,785,740	1,719,189	1,605,299	1,457,744	1,339,829	1,266,126	1,254,781	1,238,197
Revenue (ttm)	US$ in thousands	2,676,297	2,737,534	2,860,875	3,017,204	3,155,045	3,308,255	3,431,683	3,676,647	3,702,883	3,576,806	3,445,789	3,198,720	3,121,469	3,017,150	2,779,704	2,505,221	2,294,965	2,159,873	2,144,683	2,107,434
Gross profit margin		57.42%	57.63%	58.19%	58.62%	59.18%	59.66%	60.01%	59.84%	59.59%	59.53%	58.54%	57.58%	57.21%	56.98%	57.75%	58.19%	58.38%	58.62%	58.51%	58.75%

December 31, 2023 calculation

Gross profit margin = Gross profit (ttm) ÷ Revenue (ttm)
= $1,536,747K ÷ $2,676,297K
= 57.42%

The gross profit margin of Teradyne, Inc. has shown a decreasing trend over the past quarters, declining from 59.18% in Q4 2022 to 57.42% in Q4 2023. This indicates that the company's ability to generate profit from its core business operations has weakened. Despite slight fluctuations, the gross profit margin has generally been on a downward trajectory since Q2 2022 when it stood at 60.01%.

The decreasing trend in gross profit margin may be a cause for concern as it suggests that Teradyne may be facing challenges in maintaining profitability amid changing market conditions or cost pressures. Management should closely monitor and address the factors contributing to this trend to ensure the company's financial health and sustainability in the long run.