Analysis of Reportable Segments
Teradyne Inc. operates in 4 segments: Semiconductor Test; System Test; Wireless Test; and Robotics.
Segment Profit Margin
Teradyne Inc., profit margin by reportable segment
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Semiconductor Test | 24.93% | 30.50% | 36.97% | 32.74% | 26.86% |
| System Test | 27.82% | 35.56% | 34.86% | 37.12% | 32.54% |
| Wireless Test | 21.19% | 33.13% | 38.52% | 24.25% | 22.62% |
| Robotics | -14.46% | -4.03% | -2.17% | -8.59% | -1.98% |
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).
An analysis of segment profit margins from 2019 to 2023 reveals a general pattern of margin expansion across the testing business units during the mid-period, followed by a synchronized contraction in the most recent fiscal year. While the three testing segments remained profitable, the robotics segment consistently operated with negative margins throughout the entire period.
- Semiconductor Test
- Profit margins exhibited an upward trajectory from 26.86% in 2019 to a peak of 36.97% in 2021. This was followed by a steady decline, with the margin contracting to 24.93% by December 31, 2023, falling below the initial 2019 levels.
- System Test
- This segment demonstrated relative stability and the highest average profitability for the first four years, peaking at 37.12% in 2020. However, a sharp decline was observed in 2023, where the profit margin dropped to 27.82%.
- Wireless Test
- The highest degree of volatility was observed in the Wireless Test segment. Margins surged from 22.62% in 2019 to a peak of 38.52% in 2021. This was followed by a significant downward trend, resulting in a margin of 21.19% by the end of 2023, the lowest recorded for this segment.
- Robotics
- The robotics segment remained consistently unprofitable. Although losses were minimized in 2021 at -2.17%, a substantial deterioration in profitability occurred in 2023, with margins reaching a period low of -14.46%.
The overarching trend indicates that the peak profitability experienced across all testing segments in 2021 was not sustained, with 2023 marking a widespread compression of margins. The robotics segment continues to face operational challenges, as evidenced by the widening losses in the final year of the analyzed period.
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Segment Profit Margin: Semiconductor Test
Teradyne Inc.; Semiconductor Test; segment profit margin calculation
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | |||||
| Income (loss) before taxes | 453,320) | 634,488) | 976,988) | 739,695) | 416,973) |
| Revenues | 1,818,636) | 2,080,590) | 2,642,342) | 2,259,597) | 1,552,571) |
| Segment Profitability Ratio | |||||
| Segment profit margin1 | 24.93% | 30.50% | 36.97% | 32.74% | 26.86% |
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
Segment profit margin = 100 × Income (loss) before taxes ÷ Revenues
= 100 × 453,320 ÷ 1,818,636 = 24.93%
The Semiconductor Test segment exhibited a cyclical performance pattern between 2019 and 2023, characterized by a period of significant expansion followed by a progressive contraction in both operational scale and profitability.
- Revenue Trajectory
- Revenues experienced a strong upward trend during the first three years of the period, increasing from US$ 1.55 billion in 2019 to a peak of US$ 2.64 billion in 2021. This growth was followed by a consistent decline, with revenues falling to US$ 2.08 billion in 2022 and further contracting to US$ 1.82 billion by the end of 2023.
- Income Performance
- Income before taxes mirrored the revenue trend, rising from US$ 416.97 million in 2019 to a high of US$ 976.99 million in 2021. A subsequent downturn saw income decrease to US$ 634.49 million in 2022 and US$ 453.32 million in 2023. While the 2023 income remains slightly above 2019 levels, the decline from the 2021 peak is substantial.
- Segment Profit Margin Analysis
- The segment profit margin followed a bell-shaped curve, expanding from 26.86% in 2019 to a peak of 36.97% in 2021. This expansion suggests improved operational efficiency or pricing power during the growth phase. However, a sharp contraction occurred thereafter, with margins dropping to 30.50% in 2022 and further declining to 24.93% in 2023. The 2023 margin represents the lowest point in the observed period, indicating that profitability has contracted more severely than the decline in overall revenue.
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Segment Profit Margin: System Test
Teradyne Inc.; System Test; segment profit margin calculation
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | |||||
| Income (loss) before taxes | 94,073) | 166,879) | 163,064) | 152,092) | 93,543) |
| Revenues | 338,197) | 469,346) | 467,739) | 409,729) | 287,455) |
| Segment Profitability Ratio | |||||
| Segment profit margin1 | 27.82% | 35.56% | 34.86% | 37.12% | 32.54% |
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
Segment profit margin = 100 × Income (loss) before taxes ÷ Revenues
= 100 × 94,073 ÷ 338,197 = 27.82%
The System Test segment experienced a period of growth in both revenue and profitability between 2019 and 2022, followed by a notable contraction in 2023. While revenues reached their peak in 2022, the segment's operational efficiency, as measured by the profit margin, reached its highest point in 2020.
- Revenue and Income Trajectory
- Revenues grew steadily from US$ 287.5 million in 2019 to US$ 469.3 million by the end of 2022. Income before taxes followed a similar upward trend, increasing from US$ 93.5 million in 2019 to a peak of US$ 166.9 million in 2022. This period indicates a phase of substantial expansion in both top-line growth and absolute profitability.
- Profit Margin Fluctuations
- The segment profit margin exhibited volatility, peaking at 37.12% in 2020. In the subsequent two years, the margin remained relatively stable, recording 34.86% in 2021 and 35.56% in 2022. The initial spike in 2020 suggests a period of high operational leverage where income grew at a faster rate than revenue.
- Recent Performance Contraction
- A significant decline is observed in 2023, with revenues decreasing to US$ 338.2 million and income before taxes falling to US$ 94.1 million. This contraction resulted in the segment profit margin dropping to 27.82%, the lowest level recorded in the five-year period. The sharp decrease in margin indicates that the reduction in income was more severe than the reduction in revenue, suggesting an increase in the relative cost of operations or a shift in product mix.
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Segment Profit Margin: Wireless Test
Teradyne Inc.; Wireless Test; segment profit margin calculation
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | |||||
| Income (loss) before taxes | 30,568) | 66,820) | 83,543) | 41,950) | 35,585) |
| Revenues | 144,282) | 201,720) | 216,895) | 173,016) | 157,315) |
| Segment Profitability Ratio | |||||
| Segment profit margin1 | 21.19% | 33.13% | 38.52% | 24.25% | 22.62% |
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
Segment profit margin = 100 × Income (loss) before taxes ÷ Revenues
= 100 × 30,568 ÷ 144,282 = 21.19%
The Wireless Test segment exhibited a cyclical performance pattern between 2019 and 2023, characterized by a period of rapid expansion in both scale and efficiency followed by a subsequent contraction.
- Revenue Performance
- Revenues grew consistently from 2019 to 2021, rising from US$ 157.3 million to a peak of US$ 216.9 million. However, a downward trend emerged after 2021, with revenues falling to US$ 144.3 million by December 31, 2023, representing a decline below the 2019 baseline.
- Income before Taxes
- Income before taxes followed a trajectory similar to revenue but with more pronounced volatility. Profits more than doubled between 2019 and 2021, peaking at US$ 83.5 million. This was followed by a sharp decrease, ending at US$ 30.6 million in 2023, which constitutes the lowest income level within the observed five-year period.
- Segment Profit Margin
- The segment profit margin demonstrated a significant peak in 2021 at 38.52%, compared to 22.62% in 2019. Following this peak, the margin contracted to 33.13% in 2022 and further declined to 21.19% in 2023. This indicates a complete reversal of the margin expansion observed during the 2019-2021 period, with the 2023 margin falling slightly below the 2019 level.
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Segment Profit Margin: Robotics
Teradyne Inc.; Robotics; segment profit margin calculation
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | |||||
| Income (loss) before taxes | (54,251) | (16,244) | (8,167) | (24,019) | (5,916) |
| Revenues | 375,183) | 403,138) | 375,905) | 279,731) | 298,139) |
| Segment Profitability Ratio | |||||
| Segment profit margin1 | -14.46% | -4.03% | -2.17% | -8.59% | -1.98% |
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
Segment profit margin = 100 × Income (loss) before taxes ÷ Revenues
= 100 × -54,251 ÷ 375,183 = -14.46%
The Robotics segment has operated at a loss consistently from 2019 through 2023, characterized by volatile profit margins and an intensifying deficit in the most recent fiscal year. While revenue experienced growth for much of the period, this expansion did not correlate with improved profitability, as losses accelerated significantly in 2023.
- Revenue Trends
- Revenues exhibited a general upward trajectory between 2019 and 2022, increasing from 298.1 million USD to a peak of 403.1 million USD. However, this growth trend reversed in 2023, with revenues declining to 375.2 million USD, returning to levels similar to those seen in 2021.
- Operating Loss Trajectory
- Losses before taxes remained persistent throughout the five-year period. After a widening loss in 2020 and a partial recovery in 2021, losses expanded again in 2022. A significant deterioration occurred in 2023, where the loss before taxes increased to 54.3 million USD, representing a more than three-fold increase compared to the prior year.
- Segment Profit Margin Analysis
- The segment profit margin has remained negative, reflecting a failure to reach a break-even point. The margin fluctuated between -1.98% in 2019 and -8.59% in 2020, before stabilizing slightly in 2021 and 2022. The most severe contraction occurred in 2023, with the margin dropping to -14.46%, indicating that expenses increased sharply relative to the slight decline in revenue.
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Segment Return on Assets (Segment ROA)
Teradyne Inc., ROA by reportable segment
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Semiconductor Test | 34.10% | 45.89% | 78.44% | 69.11% | 53.13% |
| System Test | 51.66% | 100.57% | 95.38% | 109.98% | 71.17% |
| Wireless Test | 44.76% | 70.86% | 77.71% | 39.47% | 36.57% |
| Robotics | -7.36% | -2.44% | -1.16% | -3.37% | -0.88% |
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 asset utilization across the primary testing segments exhibited a cyclical trend, characterized by a period of significant expansion between 2020 and 2022, followed by a synchronized decline in 2023. While the testing divisions maintained high positive returns for the majority of the period, the robotics division consistently operated with negative returns on assets.
- Semiconductor Test
- This segment experienced a steady increase in efficiency from 2019 to 2021, reaching a peak return on assets of 78.44%. However, a sharp reversal occurred thereafter, with returns falling to 45.89% in 2022 and further declining to 34.10% by the end of 2023.
- System Test
- The System Test segment demonstrated the highest overall asset efficiency, with returns exceeding 100% for three consecutive years between 2020 and 2022. The peak was observed in 2020 at 109.98%. Similar to other testing segments, a significant contraction occurred in 2023, where the return on assets dropped to 51.66%.
- Wireless Test
- Returns in the Wireless Test segment remained relatively stable between 2019 and 2020 before surging to a peak of 77.71% in 2021. A subsequent downward trend was observed, with returns moderating to 70.86% in 2022 and decreasing to 44.76% in 2023.
- Robotics
- The Robotics segment consistently reported negative returns on assets throughout the five-year period. After fluctuating between -0.88% and -3.37% from 2019 to 2022, the segment saw a notable deterioration in performance in 2023, reaching its lowest point at -7.36%.
Overall, the data indicates a period of peak operational efficiency across the testing portfolio that culminated in 2021 and 2022, followed by a broad decline in 2023. The Robotics segment remains an outlier, failing to achieve positive asset returns and showing signs of increasing inefficiency toward the end of the period.
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Segment ROA: Semiconductor Test
Teradyne Inc.; Semiconductor Test; segment ROA calculation
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | |||||
| Income (loss) before taxes | 453,320) | 634,488) | 976,988) | 739,695) | 416,973) |
| Total assets | 1,329,522) | 1,382,623) | 1,245,596) | 1,070,378) | 784,808) |
| Segment Profitability Ratio | |||||
| Segment ROA1 | 34.10% | 45.89% | 78.44% | 69.11% | 53.13% |
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
Segment ROA = 100 × Income (loss) before taxes ÷ Total assets
= 100 × 453,320 ÷ 1,329,522 = 34.10%
The Semiconductor Test segment experienced a period of significant growth in profitability and asset utilization between 2019 and 2021, followed by a notable decline in both earnings and operational efficiency through 2023.
- Income before Taxes Trend
- Income before taxes exhibited a strong upward trajectory in the early part of the period, rising from 416,973 thousand US dollars in 2019 to a peak of 976,988 thousand US dollars in 2021. However, this growth reversed sharply in 2022 and 2023, with income falling to 453,320 thousand US dollars by the end of 2023, representing a contraction of approximately 53.6% from the 2021 peak.
- Asset Base Expansion
- Total assets grew consistently from 784,808 thousand US dollars in 2019 to a maximum of 1,382,623 thousand US dollars in 2022. While there was a slight reduction to 1,329,522 thousand US dollars in 2023, the overall asset base remained substantially higher than 2019 levels, indicating a period of significant capital investment or asset accumulation.
- Segment Return on Assets (ROA) Analysis
- The Segment ROA mirrored the profitability trend, increasing from 53.13% in 2019 to a peak of 78.44% in 2021. This indicates high efficiency in generating profit from the asset base during the growth phase. Conversely, ROA declined precipitously to 45.89% in 2022 and further to 34.10% in 2023. This decline was driven by the combination of falling income and a sustained high asset base, suggesting a decrease in the productivity of the segment's invested capital.
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Segment ROA: System Test
Teradyne Inc.; System Test; segment ROA calculation
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | |||||
| Income (loss) before taxes | 94,073) | 166,879) | 163,064) | 152,092) | 93,543) |
| Total assets | 182,084) | 165,925) | 170,954) | 138,295) | 131,428) |
| Segment Profitability Ratio | |||||
| Segment ROA1 | 51.66% | 100.57% | 95.38% | 109.98% | 71.17% |
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
Segment ROA = 100 × Income (loss) before taxes ÷ Total assets
= 100 × 94,073 ÷ 182,084 = 51.66%
The System Test segment exhibited a period of substantial profitability and capital efficiency from 2020 through 2022, followed by a sharp contraction in 2023. While the segment maintained high returns for several consecutive years, the most recent fiscal period indicates a notable decline in both absolute income and the efficiency of asset utilization.
- Income Before Taxes Trend
- Pre-tax income demonstrated strong growth between 2019 and 2022, rising from $93.54 million to a peak of $166.88 million. This growth phase was characterized by a steady upward trajectory. However, this trend reversed sharply in 2023, with income falling to $94.07 million, which effectively returned the segment's profitability to 2019 levels.
- Asset Base Expansion
- Total assets for the segment increased from $131.43 million in 2019 to $182.08 million by the end of 2023. The most significant expansion occurred between 2020 and 2021, with assets growing by approximately 23%. The asset base continued to expand in 2023 despite the decline in income, which intensified the downward pressure on return ratios.
- Segment Return on Assets (ROA) Analysis
- The Segment ROA peaked in 2020 at 109.98%, reflecting exceptional capital efficiency. Although the ratio remained robust, fluctuating between 95.38% and 100.57% during 2021 and 2022, a significant contraction occurred in 2023, with the ROA dropping to 51.66%. This represents the lowest efficiency level within the observed five-year period, resulting from the simultaneous occurrence of reduced pre-tax earnings and a larger asset footprint.
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Segment ROA: Wireless Test
Teradyne Inc.; Wireless Test; segment ROA calculation
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | |||||
| Income (loss) before taxes | 30,568) | 66,820) | 83,543) | 41,950) | 35,585) |
| Total assets | 68,291) | 94,298) | 107,513) | 106,273) | 97,299) |
| Segment Profitability Ratio | |||||
| Segment ROA1 | 44.76% | 70.86% | 77.71% | 39.47% | 36.57% |
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
Segment ROA = 100 × Income (loss) before taxes ÷ Total assets
= 100 × 30,568 ÷ 68,291 = 44.76%
The Wireless Test segment experienced a period of significant volatility between 2019 and 2023, characterized by a substantial peak in profitability and asset efficiency in 2021, followed by a marked contraction in both earnings and the asset base through 2023.
- Income Trends
- Pre-tax income exhibited strong growth from 2019 to 2021, rising from US$ 35.6 million to a peak of US$ 83.5 million. This upward momentum reversed after 2021, with income declining to US$ 66.8 million in 2022 and further dropping to US$ 30.6 million in 2023, representing the lowest income level within the observed five-year period.
- Asset Utilization and Base
- Total assets grew steadily from US$ 97.3 million in 2019 to a peak of US$ 107.5 million in 2021. A subsequent contraction occurred, with assets falling to US$ 94.3 million in 2022 and decreasing sharply to US$ 68.3 million in 2023. This indicates a significant reduction in the segment's resource footprint during the latter part of the period.
- Segment Return on Assets (ROA)
- The segment ROA showed a dramatic increase, climbing from 36.57% in 2019 to a peak of 77.71% in 2021. Although the ROA retreated to 44.76% by 2023, it remains above the 2019 starting point. The sharp spike in 2021 and 2022 suggests a period of exceptional asset productivity, while the 2023 figures reflect a correction in profitability that outpaced the reduction in total assets.
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Segment ROA: Robotics
Teradyne Inc.; Robotics; segment ROA calculation
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | |||||
| Income (loss) before taxes | (54,251) | (16,244) | (8,167) | (24,019) | (5,916) |
| Total assets | 737,323) | 665,638) | 701,196) | 712,936) | 671,559) |
| Segment Profitability Ratio | |||||
| Segment ROA1 | -7.36% | -2.44% | -1.16% | -3.37% | -0.88% |
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).
1 2023 Calculation
Segment ROA = 100 × Income (loss) before taxes ÷ Total assets
= 100 × -54,251 ÷ 737,323 = -7.36%
The Robotics segment has consistently operated at a loss from 2019 through 2023, characterized by increasing volatility in pre-tax income and a deteriorating return on assets. While the asset base remained relatively stable over the five-year period, the scale of operational losses expanded significantly by the end of the period.
- Income Performance
- Pre-tax losses demonstrated a fluctuating but overall downward trajectory. After an initial loss of 5.9 million US dollars in 2019, losses deepened to 24.0 million US dollars in 2020, followed by a partial recovery in 2021. However, this improvement was short-lived, as losses widened again in 2022 and culminated in a substantial loss of 54.3 million US dollars in 2023, representing the most significant decline in the period analyzed.
- Asset Base Stability
- Total assets within the segment exhibited relative stability, fluctuating within a narrow range between 665.6 million and 737.3 million US dollars. The asset base grew slightly from 2019 to 2023, suggesting that the increasing losses were not driven by a massive expansion of the asset base, but rather by a decline in the operational efficiency or profitability of existing assets.
- Segment Return on Assets (ROA)
- The Segment ROA remained negative throughout the entire period, reflecting a persistent inability to generate positive returns from the segment's assets. The ratio shifted from -0.88% in 2019 to -7.36% in 2023. The most acute deterioration occurred between 2022 and 2023, where the ROA dropped from -2.44% to -7.36%, correlating directly with the sharp increase in pre-tax losses during the final year.
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Segment Asset Turnover
Teradyne Inc., asset turnover by reportable segment
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Semiconductor Test | 1.37 | 1.50 | 2.12 | 2.11 | 1.98 |
| System Test | 1.86 | 2.83 | 2.74 | 2.96 | 2.19 |
| Wireless Test | 2.11 | 2.14 | 2.02 | 1.63 | 1.62 |
| Robotics | 0.51 | 0.61 | 0.54 | 0.39 | 0.44 |
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 asset turnover ratios across the four reportable segments demonstrate diverging trends in operational efficiency and asset utilization between 2019 and 2023.
- Semiconductor Test
- The segment experienced a period of improvement in asset utilization, peaking at 2.12 in 2021. However, a significant downward trend followed, with the ratio declining to 1.50 in 2022 and further to 1.37 by the end of 2023, indicating a decrease in the revenue generated per unit of asset.
- System Test
- A sharp increase in turnover was observed from 2.19 in 2019 to a peak of 2.96 in 2020. Efficiency remained relatively high through 2022, though a substantial contraction occurred in 2023, where the ratio fell to 1.86, the lowest level since 2019.
- Wireless Test
- This segment exhibits a consistent growth profile. Asset turnover increased steadily from 1.62 in 2019 to a peak of 2.14 in 2022, remaining stable at 2.11 in 2023. This suggests a sustained improvement in the efficiency of asset deployment within this business unit.
- Robotics
- The Robotics segment maintains significantly lower asset turnover ratios compared to the test segments, reflecting a higher capital intensity or a different stage of business maturity. Following a slight dip to 0.39 in 2020, the ratio improved to 0.61 in 2022 before moderating to 0.51 in 2023.
In summary, while the Wireless Test segment shows a positive trajectory in asset efficiency, both the Semiconductor and System Test segments experienced notable declines in their turnover ratios during 2023. The Robotics segment continues to operate with the lowest asset utilization rate among all reportable segments.
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Segment Asset Turnover: Semiconductor Test
Teradyne Inc.; Semiconductor Test; segment asset turnover calculation
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | |||||
| Revenues | 1,818,636) | 2,080,590) | 2,642,342) | 2,259,597) | 1,552,571) |
| Total assets | 1,329,522) | 1,382,623) | 1,245,596) | 1,070,378) | 784,808) |
| Segment Activity Ratio | |||||
| Segment asset turnover1 | 1.37 | 1.50 | 2.12 | 2.11 | 1.98 |
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
Segment asset turnover = Revenues ÷ Total assets
= 1,818,636 ÷ 1,329,522 = 1.37
The Semiconductor Test segment experienced a period of significant growth and subsequent contraction between 2019 and 2023. Revenue peaked in 2021 before entering a downward trend, while total assets grew steadily for most of the period, leading to a decline in asset utilization efficiency in the later years.
- Revenue Trends
- Revenues grew substantially from US$ 1.55 billion in 2019 to a peak of US$ 2.64 billion in 2021. Following this peak, a contraction occurred, with revenues decreasing to US$ 2.08 billion in 2022 and further declining to US$ 1.82 billion by the end of 2023.
- Asset Accumulation
- Total assets showed a consistent upward trajectory from 2019 through 2022, rising from US$ 784.8 million to US$ 1.38 billion. A slight reduction in the asset base was observed in 2023, with total assets ending at US$ 1.33 billion.
- Segment Asset Turnover Analysis
- The asset turnover ratio increased from 1.98 in 2019 to a peak of 2.12 in 2021, indicating high operational efficiency during the period of rapid revenue growth. However, the ratio declined sharply to 1.50 in 2022 and further to 1.37 in 2023. This downward trend suggests that the increase in the asset base was not matched by proportional revenue growth in the latter two years, resulting in diminished efficiency in generating sales from the segment's assets.
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Segment Asset Turnover: System Test
Teradyne Inc.; System Test; segment asset turnover calculation
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | |||||
| Revenues | 338,197) | 469,346) | 467,739) | 409,729) | 287,455) |
| Total assets | 182,084) | 165,925) | 170,954) | 138,295) | 131,428) |
| Segment Activity Ratio | |||||
| Segment asset turnover1 | 1.86 | 2.83 | 2.74 | 2.96 | 2.19 |
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
Segment asset turnover = Revenues ÷ Total assets
= 338,197 ÷ 182,084 = 1.86
The System Test segment exhibited significant volatility in asset utilization and revenue generation between 2019 and 2023. After a period of strong growth and efficiency gains from 2020 through 2022, the segment experienced a sharp contraction in operational efficiency in 2023.
- Revenue Trajectory
- Revenues grew substantially from US$ 287.5 million in 2019 to a peak of US$ 469.3 million in 2022. This growth trend reversed abruptly in 2023, with revenues falling to US$ 338.2 million, reflecting a decrease of approximately 28% from the previous year.
- Asset Base Evolution
- Total assets showed a general upward trend over the five-year period, increasing from US$ 131.4 million in 2019 to US$ 182.1 million in 2023. Notably, the asset base reached its highest level in 2023, coinciding with the lowest period of revenue generation within the analyzed timeframe.
- Segment Asset Turnover Analysis
- The asset turnover ratio peaked at 2.96 in 2020, indicating high efficiency in generating sales from the segment's assets. While the ratio remained robust through 2022 at 2.83, it declined sharply to 1.86 in 2023. This represents the lowest turnover rate in the five-year series, signaling a significant decrease in asset productivity as the segment struggled to maintain revenue levels despite a larger asset footprint.
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Segment Asset Turnover: Wireless Test
Teradyne Inc.; Wireless Test; segment asset turnover calculation
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | |||||
| Revenues | 144,282) | 201,720) | 216,895) | 173,016) | 157,315) |
| Total assets | 68,291) | 94,298) | 107,513) | 106,273) | 97,299) |
| Segment Activity Ratio | |||||
| Segment asset turnover1 | 2.11 | 2.14 | 2.02 | 1.63 | 1.62 |
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
Segment asset turnover = Revenues ÷ Total assets
= 144,282 ÷ 68,291 = 2.11
The Wireless Test segment demonstrates a general trajectory of increasing asset efficiency between 2019 and 2023, characterized by a significant improvement in the asset turnover ratio despite substantial fluctuations in both revenue and the asset base.
- Revenue and Asset Trends
- Revenues grew steadily from 157.3 million in 2019 to a peak of 216.9 million in 2021, followed by a contraction to 144.3 million by the end of 2023. Concurrently, total assets remained relatively stable from 2019 through 2021, before experiencing a sharp decline from 94.3 million in 2022 to 68.3 million in 2023.
- Asset Turnover Performance
- The segment asset turnover ratio improved from 1.62 in 2019 to a peak of 2.14 in 2022. This upward trend indicates a heightened capability to generate revenue from the segment's invested assets over this four-year period.
- Efficiency Analysis in the Final Period
- In 2023, a slight decrease in the turnover ratio to 2.11 was observed. However, this ratio remains substantially higher than 2019 and 2020 levels. The stability of the ratio in 2023, despite a significant drop in revenue, is attributable to a proportional and aggressive reduction in total assets, which mitigated the impact of falling sales on overall asset efficiency.
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Segment Asset Turnover: Robotics
Teradyne Inc.; Robotics; segment asset turnover calculation
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | |||||
| Revenues | 375,183) | 403,138) | 375,905) | 279,731) | 298,139) |
| Total assets | 737,323) | 665,638) | 701,196) | 712,936) | 671,559) |
| Segment Activity Ratio | |||||
| Segment asset turnover1 | 0.51 | 0.61 | 0.54 | 0.39 | 0.44 |
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
Segment asset turnover = Revenues ÷ Total assets
= 375,183 ÷ 737,323 = 0.51
The Robotics segment exhibited fluctuating asset utilization efficiency between 2019 and 2023, characterized by a period of growth peaking in 2022 followed by a decline in 2023.
- Revenue Performance
- Revenues experienced a moderate decline in 2020, dropping to US$ 279.7 million from US$ 298.1 million in 2019. A strong recovery followed, with revenues climbing to US$ 375.9 million in 2021 and reaching a five-year peak of US$ 403.1 million in 2022. In 2023, revenues contracted to US$ 375.2 million.
- Asset Base Dynamics
- Total assets showed an inconsistent trend, rising to US$ 712.9 million in 2020 before gradually decreasing to a low of US$ 665.6 million in 2022. A significant increase occurred in 2023, with total assets rising to US$ 737.3 million, the highest level recorded during the period.
- Segment Asset Turnover Analysis
- The asset turnover ratio mirrored the relationship between revenue fluctuations and asset levels. A dip to 0.39 in 2020 resulted from the combination of lower revenues and higher assets. Efficiency improved substantially over the subsequent two years, peaking at 0.61 in 2022, which was driven by peak revenues occurring alongside the lowest asset base. The ratio then fell to 0.51 in 2023, reflecting a simultaneous decrease in revenue and a sharp increase in the asset base, suggesting a decrease in the efficiency of asset deployment to generate sales.
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Segment Capital Expenditures to Depreciation
Teradyne Inc., capital expenditures to depreciation by reportable segment
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Semiconductor Test | 1.46 | 1.66 | 1.52 | 2.59 | 1.89 |
| System Test | 0.96 | 2.25 | 1.24 | 0.90 | 0.55 |
| Wireless Test | 0.46 | 0.67 | 0.52 | 0.79 | 1.93 |
| Robotics | 1.60 | 1.01 | 0.36 | 0.25 | 0.22 |
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 ratio of capital expenditures to depreciation across the reportable segments reveals divergent investment trajectories between 2019 and 2023. While certain segments have reduced their investment levels relative to asset depreciation, others have shifted toward an aggressive expansionary phase, signaling a strategic reallocation of capital.
- Semiconductor Test
- Investment levels in this segment remained consistently above the depreciation threshold throughout the period, suggesting a sustained commitment to capacity expansion or technological upgrades. A peak ratio of 2.59 was reached in 2020, followed by a corrective decline and subsequent stabilization, ending at 1.46 in 2023.
- System Test
- A significant upward trend was observed from 2019 to 2022, with the ratio climbing from 0.55 to a peak of 2.25. This indicates a period of intensified capital investment that far exceeded the rate of asset depreciation. However, a sharp contraction occurred in 2023, with the ratio falling to 0.96, suggesting a pivot toward maintaining existing assets rather than expanding.
- Wireless Test
- A pronounced downward trend is evident in this segment. Starting at a high of 1.93 in 2019, the ratio fell below 1.0 in 2020 and continued to decline, reaching a period low of 0.46 by 2023. This pattern indicates a strategic reduction in capital spending relative to the depreciation of the existing asset base.
- Robotics
- This segment demonstrates the most consistent growth in investment intensity. The ratio grew steadily from 0.22 in 2019 to 1.60 in 2023. The transition from a ratio below 1.0 to a ratio significantly above 1.0 by 2022 highlights a transition from minimal maintenance spending to an aggressive investment phase.
Overall, the data indicates a shift in capital priority, moving away from the Wireless Test segment and toward the Robotics segment, while Semiconductor and System Test segments experienced periods of high volatility in their investment cycles.
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Segment Capital Expenditures to Depreciation: Semiconductor Test
Teradyne Inc.; Semiconductor Test; segment capital expenditures to depreciation calculation
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | |||||
| Property additions | 113,415) | 126,898) | 115,618) | 168,055) | 112,145) |
| Depreciation and amortization expense | 77,745) | 76,532) | 75,982) | 64,998) | 59,197) |
| Segment Financial Ratio | |||||
| Segment capital expenditures to depreciation1 | 1.46 | 1.66 | 1.52 | 2.59 | 1.89 |
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
Segment capital expenditures to depreciation = Property additions ÷ Depreciation and amortization expense
= 113,415 ÷ 77,745 = 1.46
The investment profile of the Semiconductor Test segment is characterized by a significant volatility in property additions contrasted with a consistent, linear increase in depreciation and amortization expenses. While capital expenditures spiked in 2020, the overall trend since that peak indicates a transition toward a more conservative investment posture relative to the asset base.
- Capital Expenditure Trends
- Property additions experienced a sharp increase in 2020, reaching a period high of 168,055 thousand US$. Following this peak, investment levels normalized, fluctuating between 113,415 thousand US$ and 126,898 thousand US$ from 2021 through 2023. This suggests a concentrated period of expansion or equipment upgrading in 2020, followed by a return to baseline maintenance and incremental growth.
- Depreciation and Amortization Growth
- Depreciation and amortization expenses demonstrated a steady upward trajectory over the five-year period, rising from 59,197 thousand US$ in 2019 to 77,745 thousand US$ in 2023. This consistent growth reflects an expanding cumulative base of depreciable assets, indicating that previous capital investments have successfully integrated into the segment's operational infrastructure.
- Capital Expenditures to Depreciation Ratio Analysis
- The ratio of capital expenditures to depreciation peaked at 2.59 in 2020, confirming that investment heavily outpaced asset consumption during that fiscal year. However, a general downward trend is observed thereafter, with the ratio declining to 1.46 by December 31, 2023. Although the ratio remains above 1.0—indicating that the segment continues to invest more in new assets than it loses to depreciation—the narrowing margin suggests a shift from aggressive capacity expansion toward a sustainable replacement cycle.
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Segment Capital Expenditures to Depreciation: System Test
Teradyne Inc.; System Test; segment capital expenditures to depreciation calculation
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | |||||
| Property additions | 3,643) | 7,275) | 3,905) | 3,092) | 3,059) |
| Depreciation and amortization expense | 3,801) | 3,235) | 3,156) | 3,426) | 5,518) |
| Segment Financial Ratio | |||||
| Segment capital expenditures to depreciation1 | 0.96 | 2.25 | 1.24 | 0.90 | 0.55 |
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
Segment capital expenditures to depreciation = Property additions ÷ Depreciation and amortization expense
= 3,643 ÷ 3,801 = 0.96
The System Test segment exhibited a period of accelerating capital investment from 2019 through 2022, followed by a significant contraction in 2023. This volatility is primarily driven by fluctuations in property additions relative to a more stable, though varying, depreciation expense base.
- Property Additions Trend
- Capital spending remained relatively stable between 2019 and 2020 before increasing to $3.9 million in 2021. A substantial peak occurred in 2022, with expenditures reaching $7.275 million, representing an 86% increase over the prior year. In 2023, spending normalized significantly, falling to $3.643 million, which is approximately half of the previous year's peak.
- Depreciation and Amortization Patterns
- Depreciation expenses were highest in 2019 at $5.518 million, followed by a consistent decline to a trough of $3.156 million in 2021. A moderate recovery began in 2022 and continued into 2023, where expenses reached $3.801 million, likely reflecting the integration of the assets acquired during the 2021 and 2022 expansion phase.
- Capital Expenditure to Depreciation Ratio Analysis
- The ratio demonstrated a steady upward trajectory from 0.55 in 2019 to a peak of 2.25 in 2022. The ratios below 1.0 observed in 2019 (0.55) and 2023 (0.96) indicate periods where capital reinvestment was lower than the depreciation of the existing asset base. In contrast, the ratios of 1.24 in 2021 and 2.25 in 2022 signify a phase of aggressive capacity expansion or modernization. The sharp reversion to 0.96 in 2023 suggests a strategic shift from growth-oriented investment back to a maintenance-level spending profile.
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Segment Capital Expenditures to Depreciation: Wireless Test
Teradyne Inc.; Wireless Test; segment capital expenditures to depreciation calculation
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | |||||
| Property additions | 1,845) | 3,364) | 3,128) | 4,931) | 10,362) |
| Depreciation and amortization expense | 4,043) | 4,991) | 6,055) | 6,258) | 5,365) |
| Segment Financial Ratio | |||||
| Segment capital expenditures to depreciation1 | 0.46 | 0.67 | 0.52 | 0.79 | 1.93 |
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
Segment capital expenditures to depreciation = Property additions ÷ Depreciation and amortization expense
= 1,845 ÷ 4,043 = 0.46
A consistent reduction in capital investment relative to depreciation is evident within the Wireless Test segment over the five-year period ending December 31, 2023. The segment transitioned from a phase of aggressive asset expansion in 2019 to a period of constrained capital expenditure, with investment levels failing to keep pace with the consumption of existing assets for four consecutive years.
- Property Additions Trend
- Property additions experienced a significant downward trajectory, falling from US$ 10,362 thousand in 2019 to US$ 1,845 thousand in 2023. The most substantial contraction occurred between 2019 and 2020, where expenditures decreased by approximately 52%.
- Depreciation and Amortization Dynamics
- Depreciation and amortization expenses exhibited more stability than capital spending, though a gradual decline is observed in the later years. After reaching a peak of US$ 6,258 thousand in 2020, expenses decreased to US$ 4,043 thousand by the end of 2023.
- Capital Expenditure to Depreciation Ratio Analysis
- The ratio of capital expenditures to depreciation declined sharply from 1.93 in 2019 to 0.46 in 2023. The 2019 ratio indicates that the segment was investing nearly twice the amount of its annual depreciation, suggesting a growth-oriented investment strategy. Conversely, the ratio remained below 1.0 from 2020 through 2023, with a slight temporary recovery to 0.67 in 2022. This prolonged period of sub-1.0 ratios suggests that the segment is not replacing its depreciating assets at a full replacement cost, indicating a shift toward capital preservation or a reduction in the required asset base.
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Segment Capital Expenditures to Depreciation: Robotics
Teradyne Inc.; Robotics; segment capital expenditures to depreciation calculation
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | |||||
| Property additions | 40,739) | 25,712) | 9,821) | 8,899) | 9,076) |
| Depreciation and amortization expense | 25,527) | 25,339) | 27,336) | 36,242) | 40,904) |
| Segment Financial Ratio | |||||
| Segment capital expenditures to depreciation1 | 1.60 | 1.01 | 0.36 | 0.25 | 0.22 |
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
Segment capital expenditures to depreciation = Property additions ÷ Depreciation and amortization expense
= 40,739 ÷ 25,527 = 1.60
The Robotics segment exhibits a significant strategic shift in capital allocation over the five-year period ending December 31, 2023. A transition from a phase of minimal investment to a period of aggressive expansion is evident, characterized by a sharp increase in property additions coinciding with a general decline in depreciation and amortization expenses.
- Property Additions
- Capital expenditures remained relatively stagnant between 2019 and 2021, fluctuating between 8.8 million and 9.8 million US dollars. A substantial acceleration occurred in 2022, with expenditures rising to 25.7 million US dollars, followed by a further increase to 40.7 million US dollars by the end of 2023. This trajectory represents a growth of approximately 348% from the 2019 baseline.
- Depreciation and Amortization Expense
- A consistent downward trajectory was observed in depreciation and amortization expenses from 2019 to 2022, decreasing from 40.9 million US dollars to 25.3 million US dollars. The expense stabilized in 2023 at 25.5 million US dollars. This decline indicates that the historical asset base was being written down without equivalent replacement until the recent surge in spending.
- Segment Capital Expenditures to Depreciation Ratio
- The ratio of capital expenditures to depreciation demonstrates an exponential upward trend. From 2019 to 2021, the ratio remained well below 1.0, ranging from 0.22 to 0.36, which suggests that investment was not keeping pace with the wear and tear of existing assets. A critical inflection point occurred in 2022 when the ratio reached 1.01, and it further climbed to 1.60 in 2023. This shift signifies that the segment has transitioned from a period of capital consumption to a period of active capacity expansion.
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Revenues
Teradyne Inc., revenues by reportable segment
US$ in thousands
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Semiconductor Test | 1,818,636) | 2,080,590) | 2,642,342) | 2,259,597) | 1,552,571) |
| System Test | 338,197) | 469,346) | 467,739) | 409,729) | 287,455) |
| Wireless Test | 144,282) | 201,720) | 216,895) | 173,016) | 157,315) |
| Robotics | 375,183) | 403,138) | 375,905) | 279,731) | 298,139) |
| Corporate and Eliminations | —) | 251) | —) | (604) | (515) |
| Total | 2,676,298) | 3,155,045) | 3,702,881) | 3,121,469) | 2,294,965) |
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).
Total revenue exhibited a cyclical trajectory between 2019 and 2023, characterized by a significant expansion phase followed by a period of contraction. Aggregate revenues grew from $2.29 billion in 2019 to a peak of $3.70 billion in 2021, before declining to $2.68 billion by the end of 2023. This volatility is primarily attributed to the fluctuations within the core testing segments.
- Semiconductor Test
- As the dominant revenue contributor, this segment drove the overall corporate trend. Revenues rose sharply from $1.55 billion in 2019 to a peak of $2.64 billion in 2021. However, a downward trend followed, with revenues decreasing to $1.82 billion in 2023, though remaining above 2019 levels.
- System Test
- This segment showed consistent growth through 2022, increasing from $287 million in 2019 to a peak of $469 million. A sharp contraction occurred in 2023, with revenues falling to $338 million, indicating a late-cycle downturn compared to the semiconductor segment.
- Wireless Test
- The wireless segment experienced moderate growth peaking in 2021 at $217 million. Subsequently, a steady decline was observed, with 2023 revenues reaching $144 million, which represents a decrease below the 2019 baseline of $157 million.
- Robotics
- The robotics segment demonstrated the highest relative stability and resilience. After a slight dip in 2020, revenues grew steadily to a peak of $403 million in 2022. The 2023 figure of $375 million indicates a minimal decline, allowing this segment to increase its proportional contribution to total revenue as other segments contracted.
The overall revenue profile indicates a heavy reliance on the semiconductor and system test markets, which experienced synchronized growth through 2021 and 2022. The divergence in the robotics segment suggests a decoupling from the cyclicality of the test equipment markets, providing a more stable revenue base during the downturn observed in 2023.
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Income (loss) before taxes
Teradyne Inc., income (loss) before taxes by reportable segment
US$ in thousands
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Semiconductor Test | 453,320) | 634,488) | 976,988) | 739,695) | 416,973) |
| System Test | 94,073) | 166,879) | 163,064) | 152,092) | 93,543) |
| Wireless Test | 30,568) | 66,820) | 83,543) | 41,950) | 35,585) |
| Robotics | (54,251) | (16,244) | (8,167) | (24,019) | (5,916) |
| Corporate and Eliminations | 1,862) | (11,558) | (54,473) | (8,703) | (14,413) |
| Total | 525,572) | 840,385) | 1,160,955) | 901,015) | 525,772) |
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).
Total income before taxes exhibited a cyclical trajectory over the five-year period, peaking in 2021 at 1,160,955 thousand US dollars before contracting to 525,572 thousand US dollars by the end of 2023. This final figure represents a return to profitability levels nearly identical to those recorded in 2019.
- Semiconductor Test Performance
- As the primary driver of total income, this segment experienced significant volatility. Income rose from 416,973 thousand US dollars in 2019 to a peak of 976,988 thousand US dollars in 2021. Subsequently, a downward trend occurred, with income falling to 453,320 thousand US dollars by 2023.
- System and Wireless Test Trends
- Both segments mirrored the broader growth and contraction patterns of the semiconductor business. System Test income peaked in 2022 at 166,879 thousand US dollars before dropping to 94,073 thousand US dollars in 2023. Wireless Test income peaked earlier in 2021 at 83,543 thousand US dollars and declined sharply to 30,568 thousand US dollars by the end of the period.
- Robotics Segment Analysis
- The Robotics division consistently reported losses throughout the five-year window. While losses fluctuated between 2019 and 2022, a substantial increase in deficit was observed in 2023, with losses widening to 54,251 thousand US dollars, the highest deficit recorded across all periods.
- Corporate and Eliminations
- Corporate expenses remained predominantly negative, with the most significant deficit occurring in 2021 at 54,473 thousand US dollars. This item shifted to a marginal positive balance of 1,862 thousand US dollars in 2023.
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Total assets
Teradyne Inc., total assets by reportable segment
US$ in thousands
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Semiconductor Test | 1,329,522) | 1,382,623) | 1,245,596) | 1,070,378) | 784,808) |
| System Test | 182,084) | 165,925) | 170,954) | 138,295) | 131,428) |
| Wireless Test | 68,291) | 94,298) | 107,513) | 106,273) | 97,299) |
| Robotics | 737,323) | 665,638) | 701,196) | 712,936) | 671,559) |
| Corporate and Eliminations | 1,169,604) | 1,192,768) | 1,584,166) | 1,624,464) | 1,101,920) |
| Total | 3,486,824) | 3,501,252) | 3,809,425) | 3,652,346) | 2,787,014) |
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).
Total assets exhibited a period of rapid expansion between 2019 and 2021, increasing from approximately $2.79 billion to a peak of $3.81 billion. This growth trend reversed slightly after 2021, with total assets contracting to $3.50 billion in 2022 and further stabilizing at $3.49 billion by the end of 2023.
- Semiconductor Test
- This segment demonstrated the most significant growth among the operational units, with assets rising from $784.8 million in 2019 to a peak of $1.38 billion in 2022. A slight contraction occurred in 2023, bringing the asset total to $1.33 billion, though the segment remains substantially larger than its 2019 baseline.
- System Test
- A general upward trajectory is observed for the System Test segment. Assets grew from $131.4 million in 2019 to $182.1 million in 2023. Despite a minor dip in 2022, the segment maintains a positive long-term growth trend.
- Wireless Test
- The Wireless Test segment experienced a peak in assets of $107.5 million in 2021. Following this peak, a pronounced downward trend is evident, with assets declining to $68.3 million by the end of 2023, representing a significant reduction in the segment's asset base compared to 2019.
- Robotics
- Assets within the Robotics segment remained relatively stable over the five-year period. Values fluctuated between a low of $665.6 million in 2022 and a high of $737.3 million in 2023, indicating a consistent level of investment and resource allocation.
- Corporate and Eliminations
- A substantial increase in corporate assets was recorded in 2020, jumping from $1.10 billion to $1.62 billion. This was followed by a steady three-year decline, with the balance ending at $1.17 billion in 2023, returning nearly to 2019 levels.
The overall asset distribution indicates a strategic shift toward the Semiconductor Test segment, which has become a primary driver of the asset base. Conversely, the contraction in Wireless Test assets and the normalization of Corporate and Eliminations suggest a reallocation of resources or a reduction in specific capital requirements within those areas.
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Property additions
Teradyne Inc., property additions by reportable segment
US$ in thousands
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Semiconductor Test | 113,415) | 126,898) | 115,618) | 168,055) | 112,145) |
| System Test | 3,643) | 7,275) | 3,905) | 3,092) | 3,059) |
| Wireless Test | 1,845) | 3,364) | 3,128) | 4,931) | 10,362) |
| Robotics | 40,739) | 25,712) | 9,821) | 8,899) | 9,076) |
| Total | 159,642) | 163,249) | 132,472) | 184,977) | 134,642) |
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).
Total property additions exhibited volatility over the five-year period, peaking in 2020 at 184.98 million USD before stabilizing at 159.64 million USD by the end of 2023. The overall expenditure pattern indicates a strategic pivot in capital allocation, shifting focus from traditional testing segments toward robotics.
- Semiconductor Test Investment
- As the primary driver of capital expenditure, this segment saw a significant surge in 2020, reaching 168.06 million USD. Following this peak, investments corrected and stabilized, fluctuating between 113.42 million USD and 126.90 million USD from 2021 through 2023.
- Robotics Growth Trajectory
- An aggressive upward trend is observed in the Robotics segment. Property additions remained modest between 2019 and 2021, averaging approximately 9.23 million USD. However, expenditures accelerated sharply in 2022 to 25.71 million USD and continued to climb to 40.74 million USD in 2023, marking the most significant growth rate among all segments.
- Wireless Test Decline
- A consistent downward trend is evident in the Wireless Test segment. Capital additions fell from 10.36 million USD in 2019 to 1.85 million USD in 2023, representing a substantial reduction in the allocation of resources to this business line.
- System Test Volatility
- Investment in the System Test segment remained relatively low, characterized by a baseline of approximately 3 million USD with a notable, temporary increase to 7.28 million USD in 2022 before returning to 3.64 million USD in 2023.
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Depreciation and amortization expense
Teradyne Inc., depreciation and amortization expense by reportable segment
US$ in thousands
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Semiconductor Test | 77,745) | 76,532) | 75,982) | 64,998) | 59,197) |
| System Test | 3,801) | 3,235) | 3,156) | 3,426) | 5,518) |
| Wireless Test | 4,043) | 4,991) | 6,055) | 6,258) | 5,365) |
| Robotics | 25,527) | 25,339) | 27,336) | 36,242) | 40,904) |
| Corporate and Eliminations | (230) | 578) | 12,956) | 15,819) | 9,671) |
| Total | 110,886) | 110,675) | 125,485) | 126,743) | 120,655) |
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).
Total depreciation and amortization expenses remained relatively stable over the five-year period from 2019 to 2023, fluctuating within a range of approximately $110.6 million to $126.7 million. While the aggregate figures show minimal volatility, a significant reallocation of expense weight occurred across the reportable segments.
- Semiconductor Test
- This segment exhibits a consistent upward trend in depreciation and amortization expenses, rising from $59.2 million in 2019 to $77.7 million in 2023. This steady increase indicates sustained capital investment or the acquisition of new assets within this specific business line, positioning it as the primary driver of the company's total depreciation costs.
- Robotics
- A pronounced downward trend is observed in the Robotics segment, where expenses decreased from $40.9 million in 2019 to $25.5 million in 2023. This decline suggests that a significant portion of the segment's prior asset base has been fully depreciated or that capital expenditures in this area have slowed relative to previous years.
- Wireless and System Test
- Both segments represent a small fraction of total expenses. Wireless Test peaked in 2020 at $6.3 million before declining to $4.0 million by 2023. System Test experienced an initial decline from $5.5 million in 2019 to a low of $3.2 million in 2022, with a slight recovery to $3.8 million in 2023.
- Corporate and Eliminations
- Expenses in the Corporate and Eliminations category show high volatility, peaking at $15.8 million in 2020 before dropping sharply to a negative value of $230 thousand in 2023. This transition from a significant expense to a net credit reflects changes in internal accounting allocations or the realization of elimination adjustments.
The overall stability of the total depreciation and amortization expense is the result of offsetting trends between the primary segments. The growth in the Semiconductor Test segment has been largely neutralized by the contraction of expenses within the Robotics and Corporate categories, maintaining the total annual expense level near $111 million by the end of the period.
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