Teradyne Inc (TER)

Net profit margin

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Net income	US$ in thousands	542,372	448,752	715,501	1,014,590	784,147
Revenue	US$ in thousands	2,819,880	2,676,300	3,155,040	3,702,880	3,121,470
Net profit margin		19.23%	16.77%	22.68%	27.40%	25.12%

December 31, 2024 calculation

Net profit margin = Net income ÷ Revenue
= $542,372K ÷ $2,819,880K
= 19.23%

The net profit margin of Teradyne Inc has experienced fluctuations over the past five years. In December 2020, the net profit margin stood at 25.12%, showing a positive trend. This trend continued into December 2021, where the net profit margin increased to 27.40%, indicating improved profitability. However, in December 2022, there was a decline in the net profit margin to 22.68%, suggesting potential challenges in controlling costs or generating revenue.

Subsequently, the net profit margin dropped further to 16.77% by December 2023, signaling a significant decrease in profitability. However, there was a slight recovery in December 2024, with the net profit margin rising to 19.23%. This indicates some improvement in the company's ability to translate revenue into profit, although it remains below the levels seen in the earlier years.

Overall, Teradyne Inc's net profit margin has shown fluctuations, with periods of improvement followed by declines. It is crucial for the company to address any underlying issues affecting profitability to ensure sustainable financial performance in the future.