Teradyne Inc (TER)

Operating profit margin

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Operating income	US$ in thousands	501,068	831,939	1,200,720	928,407	553,654
Revenue	US$ in thousands	2,676,300	3,155,040	3,702,880	3,121,470	2,294,960
Operating profit margin		18.72%	26.37%	32.43%	29.74%	24.12%

December 31, 2023 calculation

Operating profit margin = Operating income ÷ Revenue
= $501,068K ÷ $2,676,300K
= 18.72%

Teradyne, Inc.'s operating profit margin has exhibited fluctuations over the past five years. In 2023, the operating profit margin decreased to 19.52% from 26.91% in 2022, indicating a decline in profitability. Comparing to the peak performance in 2021 with a margin of 32.68%, the company experienced a notable decrease. Despite the downward trend, Teradyne's operating profit margin in 2023 still remains higher than the margins in 2020 (29.32%) and 2019 (23.52%). This suggests that the company has maintained relatively strong profitability levels, although there has been some recent volatility. Further analysis and evaluation of the company's operational efficiency and cost management strategies would provide additional insights into the factors influencing these margin fluctuations.