Tetra Tech Inc (TTEK)
Payables turnover
| Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | Sep 30, 2019 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 86,192 | 39,427 | 34,567 | 46,824 | 2,699,160 |
| Payables | US$ in thousands | 173,271 | 147,436 | 128,767 | 111,804 | 206,609 |
| Payables turnover | 0.50 | 0.27 | 0.27 | 0.42 | 13.06 |
September 30, 2023 calculation
Payables turnover = Cost of revenue ÷ Payables
= $86,192K ÷ $173,271K
= 0.50
The payables turnover ratio for Tetra Tech Inc has fluctuated over the past five years. In 2019, the ratio was substantially high at 13.06, indicating that the company paid off its suppliers more than 13 times during that year. However, from 2020 onwards, the payables turnover ratio decreased significantly, reaching its lowest point of 0.27 in 2021 and 2022. This suggests that Tetra Tech Inc took a longer time to settle its accounts payable during those years.
In 2023, the payables turnover ratio improved to 0.50, indicating that the company has started to pay off its suppliers at a slightly faster pace compared to the previous two years. Overall, the varying payables turnover ratios suggest changes in Tetra Tech Inc's payment practices and relationships with suppliers. Further analysis and comparison with industry benchmarks would provide a clearer understanding of the company's payables management efficiency.
Peer comparison
Sep 30, 2023