Teradyne Inc., adjustment to net income

US$ in thousands

12 months ended:	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Net income (as reported)	448,752)	715,501)	1,014,589)	784,147)	467,468)
Add: Unrealized gains (losses) on marketable securities arising during period, net of tax	2,423)	(12,666)	(2,255)	5,839)	6,015)
Less: Reclassification adjustment for (gains) losses included in net income, net of tax	44)	301)	(995)	(2,365)	(690)
Net income (adjusted)	451,219)	703,136)	1,011,339)	787,621)	472,793)

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Teradyne Inc., adjusted profitability ratios

	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Net Profit Margin
Reported net profit margin	16.77%	22.68%	27.40%	25.12%	20.37%
Adjusted net profit margin	16.86%	22.29%	27.31%	25.23%	20.60%
Return on Equity (ROE)
Reported ROE	17.77%	29.19%	39.59%	35.53%	31.58%
Adjusted ROE	17.86%	28.68%	39.47%	35.69%	31.94%
Return on Assets (ROA)
Reported ROA	12.87%	20.44%	26.63%	21.47%	16.77%
Adjusted ROA	12.94%	20.08%	26.55%	21.56%	16.96%

Profitability ratio	Description	The company
Adjusted net profit margin	An indicator of profitability, calculated as adjusted net income divided by revenue.	Teradyne Inc. adjusted net profit margin ratio deteriorated from 2021 to 2022 and from 2022 to 2023.
Adjusted ROE	A profitability ratio calculated as adjusted net income divided by shareholders’ equity.	Teradyne Inc. adjusted ROE deteriorated from 2021 to 2022 and from 2022 to 2023.
Adjusted ROA	A profitability ratio calculated as adjusted net income divided by total assets.	Teradyne Inc. adjusted ROA deteriorated from 2021 to 2022 and from 2022 to 2023.

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	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
As Reported
Selected Financial Data (US$ in thousands)
Net income	448,752)	715,501)	1,014,589)	784,147)	467,468)
Revenues	2,676,298)	3,155,045)	3,702,881)	3,121,469)	2,294,965)
Profitability Ratio
Net profit margin¹	16.77%	22.68%	27.40%	25.12%	20.37%
Adjusted: Mark to Market Available-for-sale Securities
Selected Financial Data (US$ in thousands)
Adjusted net income	451,219)	703,136)	1,011,339)	787,621)	472,793)
Revenues	2,676,298)	3,155,045)	3,702,881)	3,121,469)	2,294,965)
Profitability Ratio
Adjusted net profit margin²	16.86%	22.29%	27.31%	25.23%	20.60%

2023 Calculations

¹ Net profit margin = 100 × Net income ÷ Revenues
= 100 × 448,752 ÷ 2,676,298 = 16.77%

² Adjusted net profit margin = 100 × Adjusted net income ÷ Revenues
= 100 × 451,219 ÷ 2,676,298 = 16.86%

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Profitability ratio	Description	The company
Adjusted net profit margin	An indicator of profitability, calculated as adjusted net income divided by revenue.	Teradyne Inc. adjusted net profit margin ratio deteriorated from 2021 to 2022 and from 2022 to 2023.

	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
As Reported
Selected Financial Data (US$ in thousands)
Net income	448,752)	715,501)	1,014,589)	784,147)	467,468)
Shareholders’ equity	2,525,897)	2,451,294)	2,562,444)	2,207,018)	1,480,158)
Profitability Ratio
ROE¹	17.77%	29.19%	39.59%	35.53%	31.58%
Adjusted: Mark to Market Available-for-sale Securities
Selected Financial Data (US$ in thousands)
Adjusted net income	451,219)	703,136)	1,011,339)	787,621)	472,793)
Shareholders’ equity	2,525,897)	2,451,294)	2,562,444)	2,207,018)	1,480,158)
Profitability Ratio
Adjusted ROE²	17.86%	28.68%	39.47%	35.69%	31.94%

2023 Calculations

¹ ROE = 100 × Net income ÷ Shareholders’ equity
= 100 × 448,752 ÷ 2,525,897 = 17.77%

² Adjusted ROE = 100 × Adjusted net income ÷ Shareholders’ equity
= 100 × 451,219 ÷ 2,525,897 = 17.86%

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Profitability ratio	Description	The company
Adjusted ROE	A profitability ratio calculated as adjusted net income divided by shareholders’ equity.	Teradyne Inc. adjusted ROE deteriorated from 2021 to 2022 and from 2022 to 2023.

	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
As Reported
Selected Financial Data (US$ in thousands)
Net income	448,752)	715,501)	1,014,589)	784,147)	467,468)
Total assets	3,486,824)	3,501,252)	3,809,425)	3,652,346)	2,787,014)
Profitability Ratio
ROA¹	12.87%	20.44%	26.63%	21.47%	16.77%
Adjusted: Mark to Market Available-for-sale Securities
Selected Financial Data (US$ in thousands)
Adjusted net income	451,219)	703,136)	1,011,339)	787,621)	472,793)
Total assets	3,486,824)	3,501,252)	3,809,425)	3,652,346)	2,787,014)
Profitability Ratio
Adjusted ROA²	12.94%	20.08%	26.55%	21.56%	16.96%

2023 Calculations

¹ ROA = 100 × Net income ÷ Total assets
= 100 × 448,752 ÷ 3,486,824 = 12.87%

² Adjusted ROA = 100 × Adjusted net income ÷ Total assets
= 100 × 451,219 ÷ 3,486,824 = 12.94%

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Profitability ratio	Description	The company
Adjusted ROA	A profitability ratio calculated as adjusted net income divided by total assets.	Teradyne Inc. adjusted ROA deteriorated from 2021 to 2022 and from 2022 to 2023.

Teradyne Inc. (NASDAQ:TER)

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