Tetra Tech Inc (TTEK)
Activity ratios
Short-term
Turnover ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Inventory turnover | 0.68 | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Receivables turnover | 4.82 | 4.81 | 4.74 | 4.64 | 4.58 | 4.14 | — | — | 4.64 | — | — | — | 4.69 | 4.48 | 4.54 | 4.30 | 4.48 | 4.78 | 4.69 | 4.27 |
| 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 |
| Working capital turnover | 16.82 | 19.47 | 17.19 | 16.49 | 30.48 | 20.17 | 13.00 | 9.72 | 14.47 | 17.48 | 15.02 | 12.50 | 14.74 | 10.40 | 11.14 | 10.54 | 14.50 | 13.77 | 12.00 | 9.43 |
Inventory turnover for Tetra Tech Inc has been consistent at a low level of 0.68 for the most recent period, indicating that the company is not efficiently managing its inventory. Receivables turnover has shown fluctuations but has generally remained within a relatively stable range, with a current value of 4.82, implying that the company collects its receivables approximately 4.82 times a year.
Payables turnover has seen significant variations, ranging from 0.27 to 14.89, with the most recent value at 0.45. This suggests that Tetra Tech Inc takes a relatively long time to pay its suppliers, which may impact relationships with its creditors. Working capital turnover has also shown fluctuations but has remained relatively high, with the latest value at 16.82, indicating that the company efficiently utilizes its working capital to generate revenue.
Overall, Tetra Tech Inc's activity ratios suggest that the company may need to focus on improving its inventory management and payment practices to enhance its efficiency and cash flow management.
Average number of days
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 536.08 | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Days of sales outstanding (DSO) | days | 75.65 | 75.93 | 77.07 | 78.60 | 79.69 | 88.14 | — | — | 78.66 | — | — | — | 77.81 | 81.53 | 80.39 | 84.97 | 81.54 | 76.30 | 77.84 | 85.43 |
| Number of days of payables | days | 816.21 | 922.22 | 1,013.00 | 72.32 | 35.80 | 39.14 | 49.15 | 71.47 | 1,364.91 | 1,287.80 | 1,280.97 | 1,499.67 | 1,359.68 | 1,213.03 | 1,171.96 | 1,261.07 | 1,065.50 | 54.03 | 29.94 | 24.52 |
In analyzing Tetra Tech Inc's activity ratios, we can observe the following trends:
1. Days of Inventory on Hand (DOH): The data provided shows inconsistencies in reporting DOH, with missing values for several periods. However, as of September 30, 2024, the company had a high DOH of 536.08 days, indicating that it takes a relatively long time for Tetra Tech to turn its inventory into sales. This may suggest challenges in managing inventory levels efficiently.
2. Days of Sales Outstanding (DSO): DSO measures the average number of days it takes for Tetra Tech to collect revenue after a sale is made. The trend in DSO over the periods indicates some fluctuations, with a decrease from the previous quarter. As of September 30, 2024, the DSO was 75.65 days, showing an improvement compared to the prior quarter. This suggests the company has been more effective in collecting receivables, but it is still important to monitor this closely.
3. Number of Days of Payables: The number of days of payables represents the average number of days it takes for Tetra Tech to pay its suppliers and vendors. The data reveals significant variations in this ratio over the periods, with a notable increase in recent quarters. As of September 30, 2024, the company had a high number of days of payables at 816.21 days. This suggests that Tetra Tech is taking an extended period to pay its suppliers, which may impact supplier relationships and could potentially signal liquidity concerns.
Overall, Tetra Tech Inc's activity ratios highlight areas that may require attention, particularly in managing inventory levels, optimizing collection processes, and addressing the extended payment periods to suppliers. Monitoring these metrics regularly and implementing strategies to improve efficiency in these areas could enhance the company's overall financial performance and operational effectiveness.
Long-term
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Fixed asset turnover | 70.88 | 71.65 | 67.43 | 64.45 | 60.24 | 51.03 | 50.22 | 101.47 | 108.43 | 99.79 | 92.66 | 93.19 | 84.94 | 85.20 | 79.62 | 84.20 | 84.28 | 87.00 | 90.01 | 78.78 |
| Total asset turnover | 1.24 | 1.24 | 1.21 | 1.22 | 1.18 | 1.04 | 0.97 | 1.30 | 1.34 | 1.30 | 1.29 | 1.25 | 1.24 | 1.22 | 1.21 | 1.23 | 1.26 | 1.35 | 1.36 | 1.35 |
Tetra Tech Inc's fixed asset turnover has shown a generally increasing trend over the past several quarters, indicating that the company is becoming more efficient in generating revenue from its fixed assets. The ratio was highest in September 2022 at 108.43 and has somewhat fluctuated since then, standing at 70.88 in September 2024. This suggests that Tetra Tech is effectively utilizing its fixed assets to drive sales.
In contrast, the total asset turnover ratio has been relatively stable over the same period, hovering around 1.24 to 1.34. This indicates that Tetra Tech is consistently generating revenue in relation to its total assets. While not as dynamic as the fixed asset turnover, a steady total asset turnover reflects the company's ability to efficiently utilize all its assets to generate sales.
Overall, the long-term activity ratios suggest that Tetra Tech Inc is effectively managing and utilizing both its fixed and total assets to drive revenue growth. The increasing trend in fixed asset turnover coupled with the stable total asset turnover indicates operational efficiency and effective asset utilization in the company's business operations.