Teradyne Inc (TER)

Net profit margin

		Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	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
Net income (ttm)	US$ in thousands	542,372	513,173	495,640	429,417	448,751	503,998	559,367	637,104	715,501	767,240	840,473	971,005	1,014,589	986,881	952,881	813,470	784,149	712,890	626,032	534,521
Revenue (ttm)	US$ in thousands	2,817,600	2,735,316	2,697,790	2,651,934	2,670,386	2,731,622	2,858,923	3,015,666	3,155,045	3,308,256	3,431,684	3,676,648	3,702,884	3,576,805	3,445,788	3,198,719	3,121,468	3,017,150	2,779,704	2,505,221
Net profit margin		19.25%	18.76%	18.37%	16.19%	16.80%	18.45%	19.57%	21.13%	22.68%	23.19%	24.49%	26.41%	27.40%	27.59%	27.65%	25.43%	25.12%	23.63%	22.52%	21.34%

December 31, 2024 calculation

Net profit margin = Net income (ttm) ÷ Revenue (ttm)
= $542,372K ÷ $2,817,600K
= 19.25%

Net profit margin is a key profitability ratio that indicates the percentage of revenue that translates into net income. For Teradyne Inc, the net profit margin has shown some fluctuations over the past few years, starting at 21.34% as of March 31, 2020, and reaching a peak of 27.65% as of June 30, 2021.

However, the trend reversed as the net profit margin declined gradually to 19.25% by December 31, 2024. This indicates a decreasing trend in the company's ability to convert revenue into profit over the analyzed period.

It is essential for stakeholders to monitor this ratio closely as fluctuations in net profit margin can provide insights into the company's efficiency in managing its expenses and generating profit from its operations. Further analysis of the company's cost structure and revenue streams may be necessary to understand the factors contributing to the changes in net profit margin.