Tetra Tech Inc (TTEK)
Number of days of payables
| Sep 30, 2024 | Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | ||
|---|---|---|---|---|---|---|
| Payables turnover | 0.45 | 0.50 | 0.27 | 0.27 | 0.42 | |
| Number of days of payables | days | 816.21 | 733.76 | 1,364.91 | 1,359.68 | 871.53 |
September 30, 2024 calculation
Number of days of payables = 365 ÷ Payables turnover
= 365 ÷ 0.45
= 816.21
The number of days of payables for Tetra Tech Inc has shown fluctuations over the past five years. In 2024, the company took an average of 816.21 days to pay its suppliers, which is an increase compared to the previous year. This may indicate that Tetra Tech Inc is taking longer to settle its payables, which could strain its relationships with suppliers and affect its working capital management.
In 2023, the number of days of payables decreased to 733.76 days compared to 2022, suggesting that the company improved its efficiency in paying its suppliers. However, in 2022, the number of days of payables spiked to 1,364.91 days, indicating a significant delay in settling its accounts payable. This prolonged duration may lead to strained supplier relationships and potential cash flow challenges.
Similarly, in 2021 and 2020, the number of days of payables remained high at 1,359.68 days and 871.53 days, respectively. These figures suggest that Tetra Tech Inc maintained a pattern of slow payments to its suppliers during these years, which could impact its creditworthiness and operational flexibility.
Overall, the trend in Tetra Tech Inc's number of days of payables shows variability over the years, with periods of high and low payment durations. It is essential for the company to closely monitor and manage its payables to maintain healthy supplier relationships and optimize its working capital efficiency.
Peer comparison
Sep 30, 2024