Teradyne Inc (TER)

Net profit margin

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Net income	US$ in thousands	448,752	715,501	1,014,590	784,147	467,468
Revenue	US$ in thousands	2,676,300	3,155,040	3,702,880	3,121,470	2,294,960
Net profit margin		16.77%	22.68%	27.40%	25.12%	20.37%

December 31, 2023 calculation

Net profit margin = Net income ÷ Revenue
= $448,752K ÷ $2,676,300K
= 16.77%

The net profit margin of Teradyne, Inc. has exhibited a declining trend over the past five years. The margin decreased from 20.37% in 2019 to 16.77% in 2023. This downward trend may indicate challenges in effectively controlling costs and/or maintaining profitability levels relative to revenue. A lower net profit margin suggests that the company is retaining a smaller portion of each dollar of revenue as profit. It is important for Teradyne to closely monitor its cost structure and revenue generation strategies to improve its profitability and sustain long-term financial health.