Teradyne Inc (TER)

Operating 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
Operating income (ttm)	US$ in thousands	540,461	517,228	512,031	502,989	514,434	550,669	636,508	738,646	833,138	930,988	1,020,681	1,161,563	1,208,721	1,178,365	1,125,626	954,703	928,408	865,984	751,244	667,289
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
Operating profit margin		19.18%	18.91%	18.98%	18.97%	19.26%	20.16%	22.26%	24.49%	26.41%	28.14%	29.74%	31.59%	32.64%	32.94%	32.67%	29.85%	29.74%	28.70%	27.03%	26.64%

December 31, 2024 calculation

Operating profit margin = Operating income (ttm) ÷ Revenue (ttm)
= $540,461K ÷ $2,817,600K
= 19.18%

Teradyne Inc's operating profit margin has displayed some fluctuations over the quarters from March 31, 2020, to December 31, 2024. The margin started at 26.64% in March 2020 and showed a steady increase until June 2021, where it peaked at 32.67%. Following this peak, there was a slight decline in the margin but remained relatively stable until June 2022.

From June 2022 onwards, the operating profit margin began to decrease more noticeably, reaching 18.91% by September 30, 2024. However, there was a slight uptick by the end of December 31, 2024, standing at 19.18%. This suggests that while the company experienced a period of strong profitability, there has been a recent decline in operating profit margin. It would be important for the company to investigate the factors contributing to this decline and take appropriate measures to maintain or improve profitability in the future.