Tetra Tech Inc (TTEK)
Days of sales outstanding (DSO)
| Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Receivables turnover | 4.64 | 4.58 | 4.14 | — | — | 4.64 | — | — | — | 4.69 | 4.48 | 4.54 | 4.30 | 4.48 | 4.78 | 4.69 | 4.27 | 3.97 | 4.08 | 4.62 | |
| DSO | days | 78.60 | 79.69 | 88.14 | — | — | 78.66 | — | — | — | 77.81 | 81.53 | 80.39 | 84.97 | 81.54 | 76.30 | 77.84 | 85.43 | 91.92 | 89.36 | 79.07 |
December 31, 2023 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 4.64
= 78.60
To analyze Tetra Tech, Inc.'s days of sales outstanding (DSO) trend, we can observe fluctuations in the DSO metric over the past quarters. The DSO measures the average number of days it takes for a company to collect revenue after a sale has been made.
From Q2 2022 to Q1 2024, Tetra Tech's DSO shows a generally increasing trend, indicating potential challenges in collecting accounts receivable in a timely manner. The DSO increased from 72.00 days in Q2 2022 to 78.21 days in Q1 2024. The peak DSO of 93.96 days in Q2 2023 suggests a significant delay in collecting sales revenue during that period.
The rise in DSO could be attributed to various factors such as changes in customer payment behavior, credit policies, or potential issues with accounts receivable management. It is essential for the company to closely monitor DSO and implement strategies to improve collections efficiency to maintain healthy cash flow and financial stability.
Overall, Tetra Tech, Inc.'s increasing trend in DSO warrants further analysis and proactive management to ensure effective accounts receivable practices and optimize working capital management.
Peer comparison
Dec 31, 2023