Stock Analysis on Net
Stock Analysis on Net

Teradyne Inc. (NASDAQ:TER)

This company has been moved to the archive! The financial data has not been updated since May 3, 2024.

DuPont Analysis: Disaggregation of ROE, ROA, and Net Profit Margin

Microsoft Excel

Decomposing ROE involves expressing net income divided by shareholders’ equity as the product of component ratios.

Two-Component Disaggregation of ROE

Teradyne Inc., decomposition of ROE

Microsoft Excel
ROE = ROA × Financial Leverage
Dec 31, 2023 17.77% = 12.87% × 1.38
Dec 31, 2022 29.19% = 20.44% × 1.43
Dec 31, 2021 39.59% = 26.63% × 1.49
Dec 31, 2020 35.53% = 21.47% × 1.65
Dec 31, 2019 31.58% = 16.77% × 1.88

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).

The primary reason for the decrease in return on equity ratio (ROE) over 2023 year is the decrease in profitability measured by return on assets ratio (ROA).

Three-Component Disaggregation of ROE

Teradyne Inc., decomposition of ROE

Microsoft Excel
ROE = Net Profit Margin × Asset Turnover × Financial Leverage
Dec 31, 2023 17.77% = 16.77% × 0.77 × 1.38
Dec 31, 2022 29.19% = 22.68% × 0.90 × 1.43
Dec 31, 2021 39.59% = 27.40% × 0.97 × 1.49
Dec 31, 2020 35.53% = 25.12% × 0.85 × 1.65
Dec 31, 2019 31.58% = 20.37% × 0.82 × 1.88

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).

The primary reason for the decrease in return on equity ratio (ROE) over 2023 year is the decrease in profitability measured by net profit margin ratio.

Five-Component Disaggregation of ROE

Teradyne Inc., decomposition of ROE

Microsoft Excel
ROE = Tax Burden × Interest Burden × EBIT Margin × Asset Turnover × Financial Leverage
Dec 31, 2023 17.77% = 0.85 × 0.99 × 19.78% × 0.77 × 1.38
Dec 31, 2022 29.19% = 0.85 × 1.00 × 26.75% × 0.90 × 1.43
Dec 31, 2021 39.59% = 0.87 × 0.98 × 31.83% × 0.97 × 1.49
Dec 31, 2020 35.53% = 0.87 × 0.97 × 29.64% × 0.85 × 1.65
Dec 31, 2019 31.58% = 0.89 × 0.96 × 23.92% × 0.82 × 1.88

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).

The primary reason for the decrease in return on equity ratio (ROE) over 2023 year is the decrease in operating profitability measured by EBIT margin ratio.

Two-Component Disaggregation of ROA

Teradyne Inc., decomposition of ROA

Microsoft Excel
ROA = Net Profit Margin × Asset Turnover
Dec 31, 2023 12.87% = 16.77% × 0.77
Dec 31, 2022 20.44% = 22.68% × 0.90
Dec 31, 2021 26.63% = 27.40% × 0.97
Dec 31, 2020 21.47% = 25.12% × 0.85
Dec 31, 2019 16.77% = 20.37% × 0.82

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).

The primary reason for the decrease in return on assets ratio (ROA) over 2023 year is the decrease in profitability measured by net profit margin ratio.

Four-Component Disaggregation of ROA

Teradyne Inc., decomposition of ROA

Microsoft Excel
ROA = Tax Burden × Interest Burden × EBIT Margin × Asset Turnover
Dec 31, 2023 12.87% = 0.85 × 0.99 × 19.78% × 0.77
Dec 31, 2022 20.44% = 0.85 × 1.00 × 26.75% × 0.90
Dec 31, 2021 26.63% = 0.87 × 0.98 × 31.83% × 0.97
Dec 31, 2020 21.47% = 0.87 × 0.97 × 29.64% × 0.85
Dec 31, 2019 16.77% = 0.89 × 0.96 × 23.92% × 0.82

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).

The primary reason for the decrease in return on assets ratio (ROA) over 2023 year is the decrease in operating profitability measured by EBIT margin ratio.

Disaggregation of Net Profit Margin

Teradyne Inc., decomposition of net profit margin ratio

Microsoft Excel
Net Profit Margin = Tax Burden × Interest Burden × EBIT Margin
Dec 31, 2023 16.77% = 0.85 × 0.99 × 19.78%
Dec 31, 2022 22.68% = 0.85 × 1.00 × 26.75%
Dec 31, 2021 27.40% = 0.87 × 0.98 × 31.83%
Dec 31, 2020 25.12% = 0.87 × 0.97 × 29.64%
Dec 31, 2019 20.37% = 0.89 × 0.96 × 23.92%

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).

The primary reason for the decrease in net profit margin ratio over 2023 year is the decrease in operating profitability measured by EBIT margin ratio.