Tetra Tech Inc (TTEK)
Days of sales outstanding (DSO)
| Sep 30, 2024 | Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | ||
|---|---|---|---|---|---|---|
| Receivables turnover | 4.84 | 4.54 | 4.62 | 4.68 | 4.47 | |
| DSO | days | 75.36 | 80.35 | 78.95 | 77.91 | 81.58 |
September 30, 2024 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 4.84
= 75.36
The days of sales outstanding (DSO) for Tetra Tech Inc have fluctuated over the past five years. In the most recent fiscal year ending on September 30, 2024, the DSO was 75.36 days, showing an improvement from the prior year where it stood at 80.35 days. This indicates that Tetra Tech Inc collected its accounts receivable more efficiently in 2024 compared to 2023.
Looking back further, the DSO was 78.95 days in 2022, 77.91 days in 2021, and 81.58 days in 2020. The downward trend from 2020 to 2021, followed by a slight increase in 2022, suggests some volatility in the company's collection period over the years.
Overall, Tetra Tech Inc's DSO has shown some variability, with a general positive trend in recent years. Lower DSO values indicate that the company is collecting its accounts receivable more quickly, which is generally a positive sign of effective management of working capital and liquidity. However, it would be important to further analyze the company's collection policies and compare them with industry benchmarks to gain a more comprehensive understanding of its efficiency in receivables management.
Peer comparison
Sep 30, 2024