Tetra Tech Inc (TTEK)
Payables turnover
| Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cost of revenue (ttm) | US$ in thousands | 88,293 | 78,500 | 77,700 | 1,044,980 | 1,766,400 | 1,760,727 | 1,750,027 | 772,447 | 39,427 | 39,167 | 36,667 | 34,767 | 34,567 | 39,900 | 38,700 | 39,200 | 38,300 | 768,960 | 1,470,066 | 2,087,816 |
| Payables | US$ in thousands | 197,440 | 198,341 | 215,644 | 207,062 | 173,271 | 188,807 | 235,655 | 151,256 | 147,436 | 138,190 | 128,683 | 142,847 | 128,767 | 132,602 | 124,260 | 135,435 | 111,804 | 113,830 | 120,587 | 140,228 |
| Payables turnover | 0.45 | 0.40 | 0.36 | 5.05 | 10.19 | 9.33 | 7.43 | 5.11 | 0.27 | 0.28 | 0.28 | 0.24 | 0.27 | 0.30 | 0.31 | 0.29 | 0.34 | 6.76 | 12.19 | 14.89 |
September 30, 2024 calculation
Payables turnover = Cost of revenue (ttm) ÷ Payables
= $88,293K ÷ $197,440K
= 0.45
The payables turnover ratio for Tetra Tech Inc has fluctuated significantly over the past few quarters. In the most recent quarter, ending September 30, 2024, the payables turnover ratio was 0.45, indicating that the company took approximately 0.45 times to pay off its accounts payable during that period.
Comparing this to previous quarters, we see a decreasing trend from the high of 10.19 in the quarter ending September 30, 2023. This sudden drop suggests that the company may have increased its accounts payable balance relative to its purchases in the latest quarter. A lower payables turnover ratio could potentially indicate inefficiencies in managing payables or strained relationships with suppliers.
It is worth noting the significant fluctuations in the payables turnover ratio over the past few quarters, with periods of high turnover followed by periods of low turnover. This inconsistency may signal variability in Tetra Tech's payment practices and the dynamics of its supplier relationships.
Overall, while a low payables turnover ratio may not necessarily be negative, as it could simply reflect strategic management of working capital, it is essential for Tetra Tech Inc to monitor this metric closely to ensure optimal management of its payables and relationships with suppliers.
Peer comparison
Sep 30, 2024