Tetra Tech Inc (TTEK)
Days of sales outstanding (DSO)
| Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Receivables turnover | 4.82 | 4.81 | 4.74 | 4.64 | 4.58 | 4.14 | — | — | 4.64 | — | — | — | 4.69 | 4.48 | 4.54 | 4.30 | 4.48 | 4.78 | 4.69 | 4.27 | |
| DSO | days | 75.65 | 75.93 | 77.07 | 78.60 | 79.69 | 88.14 | — | — | 78.66 | — | — | — | 77.81 | 81.53 | 80.39 | 84.97 | 81.54 | 76.30 | 77.84 | 85.43 |
September 30, 2024 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 4.82
= 75.65
Days Sales Outstanding (DSO) is a financial ratio that measures the average number of days a company takes to collect revenue after a sale has been made. A lower DSO indicates that a company is able to collect its accounts receivable more quickly, which implies more efficient cash flow management.
Analyzing Tetra Tech Inc's DSO over the past few quarters, we observe some fluctuations in the metric. The DSO has ranged from a low of 75.65 days to a high of 88.14 days over the past few quarters. A decreasing trend in DSO would generally be seen as positive, as it indicates that the company is collecting its accounts receivable more efficiently.
It is also important to compare Tetra Tech Inc's DSO to industry benchmarks and peers to assess its relative performance in managing accounts receivable. An unusually high DSO compared to industry peers could indicate potential inefficiencies in the company's credit and collections policies.
Overall, closely monitoring and managing the DSO can provide insights into Tetra Tech Inc's liquidity, collection efficiency, and overall financial health. Additional analysis and comparison with industry standards can provide a more comprehensive understanding of the company's performance in this aspect.
Peer comparison
Sep 30, 2024