Tetra Tech Inc (TTEK)
Days of sales outstanding (DSO)
| Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | Sep 30, 2019 | ||
|---|---|---|---|---|---|---|
| Receivables turnover | 4.54 | 4.62 | 4.68 | 4.47 | 3.97 | |
| DSO | days | 80.35 | 78.95 | 77.91 | 81.58 | 91.92 |
September 30, 2023 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 4.54
= 80.35
Tetra Tech Inc's Days Sales Outstanding (DSO) has displayed a fluctuating trend over the past five years, standing at 80.35 days as of September 30, 2023. The DSO has increased slightly from the previous year, where it was 78.95 days.
Comparing the DSO to data from prior years, there was a gradual decrease in 2021 from 81.58 days in 2020. The most significant improvement was seen in 2019 when the DSO was 91.92 days. This indicates that Tetra Tech has become more efficient in collecting its accounts receivable over the years.
The current DSO of 80.35 days suggests that, on average, Tetra Tech takes approximately 80 days to collect its accounts receivable. A lower DSO is generally preferable as it indicates quicker collection of cash from customers.
Overall, the fluctuating trend in Tetra Tech's DSO over the years indicates the need for continued monitoring and potential strategies to further optimize the company's accounts receivable management.
Peer comparison
Sep 30, 2023