Tetra Tech Inc (TTEK)
Total asset 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 |
| Total assets | US$ in thousands | 3,950,820 | 3,820,480 | 3,973,580 | 3,985,040 | 2,731,480 | 2,622,780 | 2,677,710 | 2,645,620 | 2,640,460 | 2,576,560 | 2,510,920 | 2,455,060 | 2,414,870 | 2,378,560 | 2,289,310 | 2,343,150 | 2,352,550 | 2,147,410 | 2,096,420 | 1,951,860 |
| Total asset turnover | 1.22 | 1.18 | 1.04 | 0.97 | 1.30 | 1.34 | 1.30 | 1.29 | 1.25 | 1.24 | 1.22 | 1.21 | 1.23 | 1.26 | 1.35 | 1.36 | 1.35 | 1.45 | 1.43 | 1.51 |
December 31, 2023 calculation
Total asset turnover = Revenue (ttm) ÷ Total assets
= $4,831,610K ÷ $3,950,820K
= 1.22
Tetra Tech, Inc.'s total asset turnover ratio has shown varying levels over the past eight quarters. The ratio indicates how efficiently the company is using its assets to generate revenue. A higher total asset turnover ratio suggests that the company is effectively utilizing its assets to generate sales.
From the data provided, we observe fluctuations in the total asset turnover ratio. In Q1 2024, the ratio stood at 1.23, signaling that Tetra Tech generated $1.23 in revenue for every dollar of assets it had. This represents an improvement compared to Q4 2023 when the ratio was 1.18 but is slightly lower than Q1 2023's ratio of 1.30.
The company's lowest total asset turnover ratio was recorded in Q2 2023 at 0.97, indicating a dip in asset utilization efficiency during that period. However, Tetra Tech managed to bounce back with ratios above 1 in the subsequent quarters.
Overall, while there are fluctuations in Tetra Tech's total asset turnover ratio, the company generally demonstrates an efficient use of its assets to generate revenue, with the ratio consistently above 1 in most quarters. It is essential for the company to continue monitoring and managing its asset turnover to ensure optimal utilization and sustainable growth.
Peer comparison
Dec 31, 2023