Tetra Tech Inc (TTEK)
Total asset 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 |
| Total assets | US$ in thousands | 3,820,480 | 2,622,780 | 2,576,560 | 2,378,560 | 2,147,410 |
| Total asset turnover | 1.17 | 1.33 | 1.24 | 1.26 | 1.45 |
September 30, 2023 calculation
Total asset turnover = Revenue ÷ Total assets
= $4,470,860K ÷ $3,820,480K
= 1.17
The total asset turnover for Tetra Tech Inc has exhibited some fluctuation over the past five years. The ratio was 1.45 in 2019, indicating that the company generated $1.45 in revenue for every dollar of total assets. However, there has been a downward trend since then, with the ratio decreasing to 1.26 in 2020, 1.24 in 2021, 1.33 in 2022, and further to 1.17 in 2023.
A total asset turnover ratio of less than 1 suggests that the company is not efficiently utilizing its assets to generate sales. Tetra Tech Inc's decreasing total asset turnover over the years may imply that there could be issues with asset management or sales generation efficiency.
It is important for Tetra Tech Inc to carefully evaluate its asset management strategies and operational efficiency to improve its total asset turnover ratio and enhance overall performance.
Peer comparison
Sep 30, 2023