Teradyne Inc (TER)

Operating profit margin

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Operating income	US$ in thousands	593,788	501,068	831,939	1,208,720	928,407
Revenue	US$ in thousands	2,819,880	2,676,300	3,155,040	3,702,880	3,121,470
Operating profit margin		21.06%	18.72%	26.37%	32.64%	29.74%

December 31, 2024 calculation

Operating profit margin = Operating income ÷ Revenue
= $593,788K ÷ $2,819,880K
= 21.06%

Based on the provided data, Teradyne Inc's operating profit margin has exhibited fluctuations over the years. The operating profit margin increased from 29.74% on December 31, 2020, to 32.64% on December 31, 2021, suggesting improved operational efficiency. However, there was a decline in the operating profit margin to 26.37% on December 31, 2022, followed by a notable decrease to 18.72% on December 31, 2023. This decline may indicate challenges in controlling operating expenses relative to revenue during that period.

The operating profit margin then rebounded to 21.06% on December 31, 2024, but it remained below the levels seen in the earlier years. It is essential for Teradyne to closely monitor its operating expenses and revenue generation strategies to sustain and improve its operating profit margin over time. fluctuations in this key metric may reflect changes in the company's cost structure, pricing strategy, or overall operating performance.