Teradyne Inc (TER)
Profitability ratios
Return on sales
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross profit margin | 58.37% | 57.63% | 57.11% | 57.29% | 57.47% | 57.69% | 58.09% | 58.52% | 59.18% | 59.66% | 60.01% | 59.84% | 59.59% | 59.53% | 58.54% | 57.58% | 57.21% | 56.98% | 57.75% | 58.19% |
| 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% |
| Pretax margin | 21.62% | 21.61% | 21.37% | 18.91% | 19.68% | 21.27% | 23.19% | 25.11% | 26.64% | 27.46% | 28.55% | 30.61% | 31.57% | 31.56% | 31.77% | 29.01% | 28.87% | 27.91% | 26.26% | 25.70% |
| Net profit margin | 19.25% | 18.76% | 18.37% | 16.19% | 16.80% | 18.45% | 19.57% | 21.13% | 22.68% | 23.19% | 24.49% | 26.41% | 27.40% | 27.59% | 27.65% | 25.43% | 25.12% | 23.63% | 22.52% | 21.34% |
Teradyne Inc's profitability ratios demonstrate a fluctuating trend over the periods analyzed.
1. Gross profit margin: The company's gross profit margin shows a slight increase from 58.19% in March 2020 to a peak of 60.01% in June 2022, before experiencing some volatility and ending at 58.37% in December 2024.
2. Operating profit margin: Teradyne's operating profit margin has shown significant fluctuations, starting at 26.64% in March 2020, reaching a peak of 32.94% in September 2021, and then declining to 19.18% by December 2024.
3. Pretax margin: The pretax margin started at 25.70% in March 2020, peaked at 31.77% in June 2021, and gradually decreased to 21.62% by December 2024, reflecting fluctuations in the company's pre-tax profitability.
4. Net profit margin: The net profit margin has experienced a downward trend, starting at 21.34% in March 2020, peaking at 27.65% in June 2021, and then declining to 19.25% by December 2024.
Overall, the analysis indicates that while Teradyne Inc's gross profit margin has shown some stability, its operating, pretax, and net profit margins have been more volatile, with fluctuations in profitability levels over the years. It is important for stakeholders to monitor these ratios closely to understand the company's overall profitability performance.
Return on investment
| 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 return on assets (Operating ROA) | 14.57% | 13.72% | 14.10% | 14.75% | 14.75% | 16.34% | 18.75% | 21.83% | 23.80% | 28.04% | 29.22% | 32.18% | 31.74% | 31.32% | 28.13% | 25.67% | 25.42% | 25.20% | 23.10% | 23.66% |
| Return on assets (ROA) | 14.62% | 13.61% | 13.65% | 12.59% | 12.87% | 14.95% | 16.48% | 18.83% | 20.44% | 23.11% | 24.06% | 26.90% | 26.65% | 26.23% | 23.82% | 21.87% | 21.47% | 20.74% | 19.25% | 18.95% |
| Return on total capital | 12.25% | 20.50% | 21.25% | 19.74% | 20.96% | 23.96% | 27.38% | 31.40% | 34.77% | 40.89% | 43.35% | 46.13% | 46.15% | 44.57% | 42.84% | 39.99% | 40.91% | 42.72% | 43.62% | 40.65% |
| Return on equity (ROE) | 14.62% | 17.68% | 18.15% | 16.79% | 17.77% | 20.64% | 22.97% | 26.01% | 29.19% | 34.04% | 36.56% | 39.24% | 39.50% | 38.89% | 38.22% | 34.99% | 35.53% | 35.76% | 35.89% | 34.47% |
Teradyne Inc's profitability ratios have shown some fluctuations over the reporting period.
The Operating Return on Assets (Operating ROA) increased from 23.66% as of March 31, 2020, to a peak of 32.18% as of March 31, 2022, before declining to 13.72% by September 30, 2024. This indicates that the company's operating profit relative to its total assets initially improved but declined significantly in the latter years.
Similarly, the Return on Assets (ROA) also followed a similar trend, increasing from 18.95% as of March 31, 2020, to a peak of 26.90% by March 31, 2022, before dropping to 14.62% by December 31, 2024. This ratio reflects the overall profitability of the company's assets, and the decreasing trend towards the end of the period suggests less efficient asset utilization.
The Return on Total Capital peaked at 46.15% by December 31, 2021, but declined to 12.25% by December 31, 2024. This ratio signifies the company's ability to generate returns from all capital sources, and the declining trend indicates decreasing profitability relative to the total capital invested.
Lastly, the Return on Equity (ROE) reached its highest point at 39.50% by December 31, 2021, but decreased to 14.62% by December 31, 2024. ROE reflects the returns generated for the shareholders, and the declining trend indicates a lower return on equity invested over time.
Overall, Teradyne Inc's profitability ratios have shown varying patterns, with some improvement in profitability initially followed by a decline in later years. These trends suggest fluctuations in the company's operational efficiency and profitability performance.