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.

Analysis of Profitability Ratios 

Microsoft Excel

Profitability Ratios (Summary)

Teradyne Inc., profitability ratios

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Return on Sales
Gross profit margin 57.42% 59.18% 59.59% 57.21% 58.38%
Operating profit margin 18.72% 26.37% 32.43% 29.74% 24.12%
Net profit margin 16.77% 22.68% 27.40% 25.12% 20.37%
Return on Investment
Return on equity (ROE) 17.77% 29.19% 39.59% 35.53% 31.58%
Return on assets (ROA) 12.87% 20.44% 26.63% 21.47% 16.77%

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).

Profitability ratio Description The company
Gross profit margin Gross profit margin indicates the percentage of revenue available to cover operating and other expenditures. Teradyne Inc. gross profit margin ratio deteriorated from 2021 to 2022 and from 2022 to 2023.
Operating profit margin A profitability ratio calculated as operating income divided by revenue. Teradyne Inc. operating profit margin ratio deteriorated from 2021 to 2022 and from 2022 to 2023.
Net profit margin An indicator of profitability, calculated as net income divided by revenue. Teradyne Inc. net profit margin ratio deteriorated from 2021 to 2022 and from 2022 to 2023.

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

Gross Profit Margin

Teradyne Inc., gross profit margin calculation, comparison to benchmarks

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Selected Financial Data (US$ in thousands)
Gross profit 1,536,748 1,867,151 2,206,656 1,785,741 1,339,829
Revenues 2,676,298 3,155,045 3,702,881 3,121,469 2,294,965
Profitability Ratio
Gross profit margin1 57.42% 59.18% 59.59% 57.21% 58.38%
Benchmarks
Gross Profit Margin, Competitors2
Advanced Micro Devices Inc. 46.12% 44.93% 48.25% 44.53% 42.61%
Analog Devices Inc. 64.01% 62.70% 61.83% 65.87% 67.00%
Applied Materials Inc. 46.70% 46.51% 47.32% 44.72% 43.72%
Broadcom Inc. 68.93% 66.55% 61.36% 56.58% 55.24%
First Solar Inc. 39.19% 2.67% 24.97% 25.10% 17.93%
Intel Corp. 40.04% 42.61% 55.45% 56.01% 58.56%
KLA Corp. 59.81% 61.00% 59.93% 57.81% 59.08%
Lam Research Corp. 44.62% 45.69% 46.53% 45.88% 45.15%
Micron Technology Inc. -9.11% 45.18% 37.62% 30.57% 45.72%
NVIDIA Corp. 56.93% 64.93% 62.34% 61.99% 61.21%
Qualcomm Inc. 55.70% 57.84% 57.51% 60.67% 64.57%
Texas Instruments Inc. 62.90% 68.76% 67.47% 64.10% 63.71%

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).

1 2023 Calculation
Gross profit margin = 100 × Gross profit ÷ Revenues
= 100 × 1,536,748 ÷ 2,676,298 = 57.42%

2 Click competitor name to see calculations.

Profitability ratio Description The company
Gross profit margin Gross profit margin indicates the percentage of revenue available to cover operating and other expenditures. Teradyne Inc. gross profit margin ratio deteriorated from 2021 to 2022 and from 2022 to 2023.

Operating Profit Margin

Teradyne Inc., operating profit margin calculation, comparison to benchmarks

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Selected Financial Data (US$ in thousands)
Income from operations 501,068 831,939 1,200,720 928,407 553,654
Revenues 2,676,298 3,155,045 3,702,881 3,121,469 2,294,965
Profitability Ratio
Operating profit margin1 18.72% 26.37% 32.43% 29.74% 24.12%
Benchmarks
Operating Profit Margin, Competitors2
Advanced Micro Devices Inc. 1.77% 5.36% 22.20% 14.02% 9.37%
Analog Devices Inc. 31.07% 27.29% 23.12% 26.74% 28.55%
Applied Materials Inc. 28.86% 30.20% 29.87% 25.37% 22.93%
Broadcom Inc. 45.25% 42.84% 31.03% 16.80% 15.24%
First Solar Inc. 25.83% -1.04% 20.07% 11.71% -5.28%
Intel Corp. 0.17% 3.70% 24.62% 30.41% 30.62%
KLA Corp. 38.06% 39.67% 35.97% 25.87% 30.41%
Lam Research Corp. 29.69% 31.24% 30.64% 26.62% 25.53%
Micron Technology Inc. -36.97% 31.54% 22.68% 14.01% 31.51%
NVIDIA Corp. 15.66% 37.31% 27.18% 26.07% 32.47%
Qualcomm Inc. 21.74% 35.88% 29.16% 26.58% 31.59%
Texas Instruments Inc. 41.85% 50.63% 48.84% 40.76% 39.79%
Operating Profit Margin, Sector
Semiconductors & Semiconductor Equipment 18.59% 27.10% 28.22% 25.72% 27.91%
Operating Profit Margin, Industry
Information Technology 26.21% 28.31% 28.72% 24.93% 25.33%

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).

1 2023 Calculation
Operating profit margin = 100 × Income from operations ÷ Revenues
= 100 × 501,068 ÷ 2,676,298 = 18.72%

2 Click competitor name to see calculations.

Profitability ratio Description The company
Operating profit margin A profitability ratio calculated as operating income divided by revenue. Teradyne Inc. operating profit margin ratio deteriorated from 2021 to 2022 and from 2022 to 2023.

Net Profit Margin

Teradyne Inc., net profit margin calculation, comparison to benchmarks

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
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%
Benchmarks
Net Profit Margin, Competitors2
Advanced Micro Devices Inc. 3.77% 5.59% 19.24% 25.50% 5.07%
Analog Devices Inc. 26.94% 22.88% 19.00% 21.79% 22.75%
Applied Materials Inc. 25.86% 25.31% 25.53% 21.04% 18.52%
Broadcom Inc. 39.31% 34.62% 24.54% 12.39% 12.05%
First Solar Inc. 25.03% -1.69% 16.03% 14.69% -3.75%
Intel Corp. 3.11% 12.71% 25.14% 26.84% 29.25%
KLA Corp. 32.27% 36.06% 30.04% 20.96% 25.73%
Lam Research Corp. 25.88% 26.73% 26.72% 22.42% 22.70%
Micron Technology Inc. -37.54% 28.24% 21.16% 12.54% 26.97%
NVIDIA Corp. 16.19% 36.23% 25.98% 25.61% 35.34%
Qualcomm Inc. 20.19% 29.27% 26.94% 22.09% 18.07%
Texas Instruments Inc. 37.16% 43.68% 42.35% 38.69% 34.88%
Net Profit Margin, Sector
Semiconductors & Semiconductor Equipment 17.15% 25.31% 25.73% 22.99% 24.09%
Net Profit Margin, Industry
Information Technology 22.04% 23.93% 25.58% 21.38% 22.17%

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).

1 2023 Calculation
Net profit margin = 100 × Net income ÷ Revenues
= 100 × 448,752 ÷ 2,676,298 = 16.77%

2 Click competitor name to see calculations.

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

Return on Equity (ROE)

Teradyne Inc., ROE calculation, comparison to benchmarks

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
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%
Benchmarks
ROE, Competitors2
Advanced Micro Devices Inc. 1.53% 2.41% 42.18% 42.66% 12.06%
Analog Devices Inc. 9.32% 7.54% 3.66% 10.17% 11.64%
Applied Materials Inc. 41.94% 53.51% 48.08% 34.21% 32.94%
Broadcom Inc. 58.70% 50.62% 26.99% 12.40% 10.92%
First Solar Inc. 12.42% -0.76% 7.86% 7.22% -2.26%
Intel Corp. 1.60% 7.90% 20.83% 25.79% 27.16%
KLA Corp. 116.01% 237.04% 61.53% 45.65% 44.21%
Lam Research Corp. 54.94% 73.35% 64.85% 43.53% 46.89%
Micron Technology Inc. -13.22% 17.41% 13.34% 6.89% 17.59%
NVIDIA Corp. 19.76% 36.65% 25.64% 22.91% 44.33%
Qualcomm Inc. 33.51% 71.81% 90.88% 85.54% 89.35%
Texas Instruments Inc. 38.53% 60.02% 58.27% 60.90% 56.33%
ROE, Sector
Semiconductors & Semiconductor Equipment 13.28% 22.31% 25.40% 24.08% 26.08%
ROE, Industry
Information Technology 31.78% 38.36% 42.36% 35.12% 36.53%

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).

1 2023 Calculation
ROE = 100 × Net income ÷ Shareholders’ equity
= 100 × 448,752 ÷ 2,525,897 = 17.77%

2 Click competitor name to see calculations.

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

Return on Assets (ROA)

Teradyne Inc., ROA calculation, comparison to benchmarks

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
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%
Benchmarks
ROA, Competitors2
Advanced Micro Devices Inc. 1.26% 1.95% 25.46% 27.78% 5.66%
Analog Devices Inc. 6.79% 5.46% 2.66% 5.69% 6.37%
Applied Materials Inc. 22.31% 24.41% 22.80% 16.19% 14.22%
Broadcom Inc. 19.33% 15.69% 8.91% 3.90% 4.04%
First Solar Inc. 8.02% -0.54% 6.32% 5.60% -1.53%
Intel Corp. 0.88% 4.40% 11.80% 13.65% 15.42%
KLA Corp. 24.07% 26.37% 20.23% 13.11% 13.05%
Lam Research Corp. 24.02% 26.78% 24.59% 15.47% 18.26%
Micron Technology Inc. -9.08% 13.11% 9.96% 5.01% 12.91%
NVIDIA Corp. 10.61% 22.07% 15.05% 16.15% 31.15%
Qualcomm Inc. 14.17% 26.39% 21.93% 14.60% 13.31%
Texas Instruments Inc. 20.12% 32.16% 31.48% 28.91% 27.84%
ROA, Sector
Semiconductors & Semiconductor Equipment 7.42% 12.50% 13.52% 11.70% 13.08%
ROA, Industry
Information Technology 13.01% 14.99% 15.62% 12.12% 12.78%

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).

1 2023 Calculation
ROA = 100 × Net income ÷ Total assets
= 100 × 448,752 ÷ 3,486,824 = 12.87%

2 Click competitor name to see calculations.

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