Tetra Tech Inc (TTEK)
Receivables turnover
| Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | Sep 30, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 4,470,860 | 3,490,830 | 3,200,980 | 2,991,130 | 3,107,350 |
| Receivables | US$ in thousands | 984,158 | 755,112 | 683,258 | 668,544 | 782,540 |
| Receivables turnover | 4.54 | 4.62 | 4.68 | 4.47 | 3.97 |
September 30, 2023 calculation
Receivables turnover = Revenue ÷ Receivables
= $4,470,860K ÷ $984,158K
= 4.54
Tetra Tech Inc's receivables turnover ratio has displayed a relatively stable trend over the past five years, ranging from 3.97 in 2019 to 4.68 in 2021. The ratio measures the company's efficiency in collecting its accounts receivable, indicating how many times during the year the company collects its average accounts receivable balance.
With a receivables turnover ratio of 4.54 as of Sep 30, 2023, the company appears to be effectively managing its accounts receivable collections. A higher turnover ratio typically indicates that the company is collecting its outstanding receivables more frequently, reflecting a shorter collection period. This could be a positive sign of efficient credit policies, strong customer relationships, or effective collection efforts.
Overall, Tetra Tech Inc's consistent receivables turnover ratios suggest that the company has been successful in efficiently managing its accounts receivable over the years, which can contribute to maintaining a healthy cash flow and liquidity position.
Peer comparison
Sep 30, 2023