Common-Size Income Statement
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- Statement of Comprehensive Income
- Balance Sheet: Assets
- Analysis of Long-term (Investment) Activity Ratios
- DuPont Analysis: Disaggregation of ROE, ROA, and Net Profit Margin
- Analysis of Geographic Areas
- Selected Financial Data since 2005
- Operating Profit Margin since 2005
- Return on Assets (ROA) since 2005
- Current Ratio since 2005
- Price to Operating Profit (P/OP) since 2005
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Teradyne Inc., common-size consolidated income statement
Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).
- Revenue Composition
- The proportion of revenue derived from products demonstrated a declining trend, decreasing from 82.25% in 2019 to 78.33% in 2023. Conversely, services revenue increased from 17.75% to 21.67% over the same period, indicating a gradual shift towards a higher contribution from services.
- Cost Analysis
- Cost of products as a percentage of revenues initially rose from -34.08% in 2019 to -37.08% in 2020, then steadily decreased to -32.99% by 2023, suggesting an improvement in product cost efficiency post-2020. Cost of services fluctuated but increased notably from -5.3% in 2021 to -9.59% in 2023, implying rising service delivery costs. Overall cost of revenues (exclusive of acquired intangible assets amortization) remained relatively stable around the low 40% range, ending slightly higher at -42.58% in 2023 compared to -41.62% in 2019.
- Profitability
- Gross profit margin stayed within a constrained range, peaking at 59.59% in 2021 and dipping to 57.42% in 2023, reflecting fluctuating but generally high profitability on sales. Operating expenses, broken down into selling and administrative, engineering and development, amortization, and restructuring costs, showed upward pressure overall. Selling and administrative expenses decreased notably in 2020 and 2021 but increased substantially to -21.57% in 2023. Engineering and development costs followed a similar pattern, dropping in 2020 and 2021 but rising again to -15.62% in 2023. Amortization expenses showed a consistent decline until 2021 but modestly increased afterwards. Restructuring and other costs fluctuated slightly below zero in recent years, indicating occasional income or reduced charges from these categories.
- Operating Income and Margins
- Income from operations improved from 24.12% in 2019 to a high of 32.43% in 2021 but declined thereafter to 18.72% in 2023. This drop corresponds with the rising operating expenses in the last two years, suggesting margin compression at the operating level.
- Non-operating Items
- Interest income was highest in 2019 (1.08%) and 2023 (1.02%) but remained low and inconsistent in intervening years. Interest expense steadily decreased, reaching a minimal -0.14% in 2023, signaling lower borrowing costs or reduced debt. Other non-operating income/(expense) showed a transition from negative to slightly positive figures by 2023, supporting modest additional net income contributions. Overall non-operating income shifted from negative percentages in earlier years to positive percentages in 2022 and 2023.
- Income Before Taxes and Net Income
- Income before income taxes increased from 22.91% in 2019 to a peak of 31.35% in 2021, followed by a decrease to 19.64% in 2023. Similarly, net income margin rose from 20.37% in 2019 to 27.4% in 2021, but then declined to 16.77% in 2023. The income tax provision remained relatively steady in proportion to revenues, with a slight reduction observed in 2023 to -2.87%. The overall trend indicates strong profitability in 2021, followed by margin declines in the subsequent two years, likely influenced by increasing operating expenses and cost pressures.