Tetra Tech Inc (TTEK)
Receivables turnover
| Sep 30, 2024 | Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 5,199,270 | 4,470,860 | 3,490,830 | 3,200,980 | 2,991,130 |
| Receivables | US$ in thousands | 1,073,430 | 984,158 | 755,112 | 683,258 | 668,544 |
| Receivables turnover | 4.84 | 4.54 | 4.62 | 4.68 | 4.47 |
September 30, 2024 calculation
Receivables turnover = Revenue ÷ Receivables
= $5,199,270K ÷ $1,073,430K
= 4.84
The receivables turnover ratio for Tetra Tech Inc has shown a consistent trend over the past five years. The ratio has ranged between 4.47 and 4.84, with a high of 4.84 in September 2024 and a low of 4.47 in September 2020.
A higher receivables turnover ratio generally indicates that the company is collecting its accounts receivable more efficiently. This means that Tetra Tech Inc is converting its accounts receivable into cash relatively quickly compared to previous years.
The relatively stable range of receivables turnover ratios over the years suggests that Tetra Tech Inc has been effective in managing its credit sales and collecting payments from its customers. Maintaining a consistent receivables turnover ratio indicates good liquidity management and efficient operations in terms of accounts receivable collection.
Overall, the trend in Tetra Tech Inc's receivables turnover ratio reflects a positive picture of the company's ability to efficiently manage its accounts receivable and convert them into cash, indicating a healthy financial position in terms of receivables management.
Peer comparison
Sep 30, 2024