Tetra Tech Inc (TTEK)
Payables 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 |
| Payables | US$ in thousands | 197,440 | 173,271 | 147,436 | 128,767 | 111,804 |
| Payables turnover | 0.45 | 0.50 | 0.27 | 0.27 | 0.42 |
September 30, 2024 calculation
Payables turnover = Cost of revenue ÷ Payables
= $88,293K ÷ $197,440K
= 0.45
The payables turnover ratio for Tetra Tech Inc has exhibited fluctuations over the past five years. The ratio decreased from 0.50 in 2023 to 0.27 in 2022 and remained constant at that level in 2021 before increasing to 0.45 in 2024.
A payables turnover ratio below 1 indicates that the company is taking longer to pay its suppliers, which may signal potential liquidity issues or strained relationships with vendors. The increase in the payables turnover ratio in 2024 may suggest that Tetra Tech Inc has improved its ability to manage its accounts payable more efficiently compared to the previous year.
It is essential to consider industry benchmarks and compare Tetra Tech Inc's payables turnover ratio with its peers to gain a more comprehensive understanding of its performance in managing its payables. Additionally, trend analysis over a more extended period can provide insights into the company's payment practices and financial health.
Peer comparison
Sep 30, 2024