Tetra Tech Inc (TTEK)
Total asset 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 |
| Total assets | US$ in thousands | 4,192,680 | 3,820,480 | 2,622,780 | 2,576,560 | 2,378,560 |
| Total asset turnover | 1.24 | 1.17 | 1.33 | 1.24 | 1.26 |
September 30, 2024 calculation
Total asset turnover = Revenue ÷ Total assets
= $5,199,270K ÷ $4,192,680K
= 1.24
Total asset turnover measures how efficient a company is at generating revenue relative to its total assets. A higher total asset turnover ratio indicates that the company is utilizing its assets more effectively to generate sales.
Analyzing Tetra Tech Inc's total asset turnover over the past five years, we observe fluctuations in the ratio. In 2024, the total asset turnover ratio was 1.24, showing a moderate efficiency in generating sales relative to its assets. This ratio was higher compared to the previous year, suggesting an improvement in asset utilization efficiency.
In 2023, the total asset turnover ratio was 1.17, indicating a slight decrease in efficiency compared to the prior year. However, the ratio rebounded in 2022 to 1.33, signaling a significant improvement in asset turnover efficiency. The company was able to generate more revenue relative to its total assets in that year.
Looking back at 2021 and 2020, the total asset turnover ratios were 1.24 and 1.26, respectively. These ratios indicate relatively stable performance in asset utilization efficiency during those years.
Overall, Tetra Tech Inc's total asset turnover has shown variability over the past five years, with some fluctuations in efficiency in generating sales relative to its total assets. Additional analysis of the company's operations and market conditions would be useful in understanding the underlying factors driving these changes.
Peer comparison
Sep 30, 2024