Teradyne Inc (TER)

Operating profit margin

		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	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Operating income (ttm)	US$ in thousands	501,067	543,331	630,866	738,948	831,939	921,787	1,012,680	1,153,562	1,200,720	1,178,365	1,125,626	954,703	928,408	865,984	751,244	667,289	553,656	494,273	482,942	469,348
Revenue (ttm)	US$ in thousands	2,676,297	2,737,534	2,860,875	3,017,204	3,155,045	3,308,255	3,431,683	3,676,647	3,702,883	3,576,806	3,445,789	3,198,720	3,121,469	3,017,150	2,779,704	2,505,221	2,294,965	2,159,873	2,144,683	2,107,434
Operating profit margin		18.72%	19.85%	22.05%	24.49%	26.37%	27.86%	29.51%	31.38%	32.43%	32.94%	32.67%	29.85%	29.74%	28.70%	27.03%	26.64%	24.12%	22.88%	22.52%	22.27%

December 31, 2023 calculation

Operating profit margin = Operating income (ttm) ÷ Revenue (ttm)
= $501,067K ÷ $2,676,297K
= 18.72%

Teradyne, Inc.'s operating profit margin has shown a decreasing trend over the past eight quarters. The margin has declined from 32.25% in Q1 2022 to 19.52% in Q4 2023. This decline indicates that the company's ability to generate profits from its core operations has weakened over time.

The gradual decrease in operating profit margin could be a cause for concern, as it may suggest inefficiencies in cost management or pricing strategies. It is important for Teradyne to closely monitor its operating expenses and pricing structures to improve profitability.

Furthermore, the decreasing trend in operating profit margin may also indicate potential challenges in maintaining competitive advantages or adapting to changes in the industry landscape. Teradyne should conduct a thorough analysis of its operations to identify areas for improvement and implement strategies to enhance operational efficiency.

Overall, the declining operating profit margin for Teradyne, Inc. highlights the need for the company to take proactive measures to address profitability challenges and sustain long-term financial performance.