Tetra Tech Inc (TTEK)
Fixed asset turnover
| Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | Sep 30, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 4,470,860 | 3,490,830 | 3,200,980 | 2,991,130 | 3,107,350 |
| Property, plant and equipment | US$ in thousands | 74,832 | 32,316 | 37,733 | 35,507 | 39,441 |
| Fixed asset turnover | 59.75 | 108.02 | 84.83 | 84.24 | 78.78 |
September 30, 2023 calculation
Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $4,470,860K ÷ $74,832K
= 59.75
Fixed asset turnover is a key ratio that measures how efficiently a company is generating sales revenue from its investment in fixed assets. A higher fixed asset turnover ratio indicates that the company is utilizing its fixed assets effectively to generate sales.
Looking at the trend of Tetra Tech Inc's fixed asset turnover over the past five years, we can see fluctuations in the ratio. In 2019, the fixed asset turnover was 78.78, indicating that for every dollar invested in fixed assets, the company generated $78.78 in sales. This ratio increased in 2020 to 84.24, showing improved efficiency in utilizing fixed assets to generate revenue.
The trend continued in 2021 with a fixed asset turnover of 84.83, signaling a further improvement in efficiency. However, in 2022, there was a significant increase in the ratio to 108.02, indicating a substantial improvement in generating sales from fixed assets. This sharp increase could be attributed to better asset management and operational efficiency.
In the latest period, as of September 30, 2023, the fixed asset turnover ratio further increased to 59.75. While the ratio decreased compared to the previous year, it remains at a relatively high level, suggesting that Tetra Tech Inc is still effectively utilizing its fixed assets to generate sales revenue.
Overall, despite some fluctuations, Tetra Tech Inc has shown a general trend of improving efficiency in generating sales from its fixed assets over the past five years, which is a positive indicator of effective asset utilization and operational performance.
Peer comparison
Sep 30, 2023