Teradyne Inc (TER)
Profitability ratios
Return on sales
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross profit margin | 57.42% | 57.63% | 58.19% | 58.62% | 59.18% | 59.66% | 60.01% | 59.84% | 59.59% | 59.53% | 58.54% | 57.58% | 57.21% | 56.98% | 57.75% | 58.19% | 58.38% | 58.62% | 58.51% | 58.75% |
| 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% |
| Pretax margin | 19.64% | 21.22% | 23.17% | 25.09% | 26.64% | 27.21% | 28.32% | 30.39% | 31.35% | 31.56% | 31.77% | 29.01% | 28.87% | 27.41% | 25.72% | 25.10% | 22.91% | 22.59% | 22.25% | 22.11% |
| Net profit margin | 16.77% | 18.41% | 19.55% | 21.12% | 22.68% | 23.19% | 24.49% | 26.41% | 27.40% | 27.59% | 27.65% | 25.43% | 25.12% | 23.63% | 22.52% | 21.34% | 20.37% | 22.51% | 21.93% | 22.49% |
Teradyne, Inc. has shown a gradual decline in profitability margins over the quarters. The gross profit margin decreased from 59.18% in Q4 2022 to 57.42% in Q4 2023. This downward trend continued through the operating profit margin, which decreased from 26.91% in Q4 2022 to 19.52% in Q4 2023. The pretax margin also experienced a decline from 26.64% in Q4 2022 to 19.64% in Q4 2023. Furthermore, the net profit margin followed a similar downward trend, dropping from 22.68% in Q4 2022 to 16.77% in Q4 2023.
These declining profitability ratios suggest that Teradyne's ability to generate profits from its operations has weakened over recent quarters. It is essential for the company to analyze the factors contributing to this trend and implement strategies to improve profitability and efficiency in its business operations.
Return on investment
| 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 return on assets (Operating ROA) | 14.37% | 16.12% | 18.58% | 21.84% | 23.76% | 27.77% | 29.03% | 31.96% | 31.52% | 31.32% | 28.13% | 25.67% | 25.42% | 25.20% | 23.12% | 23.66% | 19.87% | 18.31% | 18.08% | 17.94% |
| Return on assets (ROA) | 12.87% | 14.95% | 16.48% | 18.83% | 20.44% | 23.11% | 24.09% | 26.90% | 26.63% | 26.23% | 23.82% | 21.87% | 21.47% | 20.74% | 19.27% | 18.95% | 16.77% | 18.01% | 17.60% | 18.11% |
| Return on total capital | 20.96% | 23.96% | 27.38% | 31.06% | 34.44% | 40.17% | 42.64% | 45.67% | 44.45% | 45.34% | 44.87% | 40.98% | 35.81% | 35.43% | 34.35% | 33.41% | 29.23% | 27.65% | 27.17% | 26.75% |
| Return on equity (ROE) | 17.77% | 20.64% | 22.97% | 26.01% | 29.19% | 34.04% | 36.56% | 39.24% | 39.59% | 38.89% | 38.22% | 34.99% | 35.53% | 35.76% | 35.89% | 34.47% | 31.58% | 32.79% | 31.79% | 32.24% |
Teradyne, Inc. has demonstrated a consistent profitability performance over the past 8 quarters based on the profitability ratios provided.
1. Operating return on assets (Operating ROA): The Operating ROA has shown a decreasing trend from 32.85% in Q1 2022 to 14.98% in Q4 2023. This indicates that the company's ability to generate operating income from its assets has declined over the quarters.
2. Return on assets (ROA): The ROA has also exhibited a downward trajectory from 26.90% in Q1 2022 to 12.87% in Q4 2023. This suggests that Teradyne's overall efficiency in generating profits from its total assets has weakened over time.
3. Return on total capital: The Return on Total Capital has followed a similar pattern as the ROA and Operating ROA, declining from 46.13% in Q1 2022 to 20.68% in Q4 2023. This indicates that the company's ability to generate returns for both equity and debt holders has been decreasing.
4. Return on equity (ROE): The ROE has also experienced a decline from 39.24% in Q1 2022 to 17.77% in Q4 2023, signaling a reduction in the profitability of equity shareholders' investments in the company.
Overall, the downward trend in profitability ratios suggests that Teradyne, Inc. may be facing challenges in effectively utilizing its assets and capital to generate returns for its investors. Further analysis of the company's financial performance and operational strategies may be necessary to address these declining profitability metrics.