Tetra Tech Inc (TTEK)
Receivables turnover
| 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 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 4,831,610 | 4,507,686 | 4,149,638 | 3,845,789 | 3,540,303 | 3,504,047 | 3,493,497 | 3,402,183 | 3,301,410 | 3,205,014 | 3,067,366 | 2,979,729 | 2,958,931 | 2,992,562 | 3,079,700 | 3,194,213 | 3,185,661 | 3,107,347 | 3,005,188 | 2,944,190 |
| Receivables | US$ in thousands | 1,040,510 | 984,158 | 1,002,090 | — | — | 755,112 | — | — | — | 683,258 | 685,174 | 656,302 | 688,813 | 668,544 | 643,745 | 681,191 | 745,611 | 782,540 | 735,755 | 637,775 |
| Receivables turnover | 4.64 | 4.58 | 4.14 | — | — | 4.64 | — | — | — | 4.69 | 4.48 | 4.54 | 4.30 | 4.48 | 4.78 | 4.69 | 4.27 | 3.97 | 4.08 | 4.62 |
December 31, 2023 calculation
Receivables turnover = Revenue (ttm) ÷ Receivables
= $4,831,610K ÷ $1,040,510K
= 4.64
The receivables turnover for Tetra Tech, Inc. has shown fluctuations over the past few quarters. The Q1 2024 receivables turnover ratio of 4.67 indicates that the company collected its accounts receivable approximately 4.67 times during the quarter. This ratio has slightly increased from the previous quarter, Q4 2023, where it was 4.60.
The turnover ratio peaked at 5.07 in Q2 2022, but has since decreased and fluctuated around the 4.00 to 4.76 range in subsequent quarters. Generally, a higher receivables turnover ratio implies a more efficient collection of accounts receivable, indicating that the company is effectively converting credit sales into cash.
However, the downward trend in the receivables turnover ratio from Q2 2022 to Q1 2024 may warrant further investigation into the company's credit policies, customer payment behavior, or the overall state of the industry. It is important for Tetra Tech, Inc. to closely monitor and manage its accounts receivable collection process to ensure liquidity and financial stability.
Peer comparison
Dec 31, 2023