Tetra Tech Inc (TTEK)
Inventory turnover
| Sep 30, 2024 | Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 88,293 | 86,192 | 39,427 | 34,567 | 46,824 |
| Inventory | US$ in thousands | 129,678 | 0 | 0 | — | 0 |
| Inventory turnover | 0.68 | — | — | — | — |
September 30, 2024 calculation
Inventory turnover = Cost of revenue ÷ Inventory
= $88,293K ÷ $129,678K
= 0.68
Inventory turnover for Tetra Tech Inc in 2024 is 0.68. The inventory turnover ratio indicates how efficiently a company manages its inventory by measuring how many times the company sells and replaces its inventory during a specific period. A lower inventory turnover ratio like 0.68 may suggest that Tetra Tech Inc is holding onto its inventory for a longer period, potentially facing challenges in selling its products quickly or efficiently. This could indicate overstocking or obsolete inventory issues that may lead to increased storage costs and potential write-offs. Tetra Tech Inc should assess its inventory management practices to improve efficiency and profitability. Further comparison with industry benchmarks or historical data can provide additional insights into the company's inventory management performance.
Peer comparison
Sep 30, 2024