Tetra Tech Inc (TTEK)
Working capital turnover
| Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 5,179,210 | 5,065,350 | 4,915,110 | 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 |
| Total current assets | US$ in thousands | 1,527,380 | 1,506,480 | 1,479,920 | 1,454,040 | 1,356,020 | 1,417,940 | 1,468,770 | 1,234,810 | 1,158,220 | 1,145,360 | 1,081,630 | 1,113,400 | 1,065,950 | 1,106,420 | 1,064,110 | 1,035,450 | 999,785 | 956,246 | 1,001,940 | 1,050,300 |
| Total current liabilities | US$ in thousands | 1,219,530 | 1,246,260 | 1,193,930 | 1,161,000 | 1,208,140 | 1,212,160 | 1,172,980 | 870,615 | 916,017 | 945,465 | 855,191 | 849,268 | 848,483 | 811,348 | 796,702 | 754,721 | 793,456 | 732,660 | 735,755 | 712,476 |
| Working capital turnover | 16.82 | 19.47 | 17.19 | 16.49 | 30.48 | 20.17 | 13.00 | 9.72 | 14.47 | 17.48 | 15.02 | 12.50 | 14.74 | 10.40 | 11.14 | 10.54 | 14.50 | 13.77 | 12.00 | 9.43 |
September 30, 2024 calculation
Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $5,179,210K ÷ ($1,527,380K – $1,219,530K)
= 16.82
The working capital turnover ratio measures how efficiently a company utilizes its working capital to generate revenue. A higher ratio indicates better utilization of working capital.
Based on the data provided for Tetra Tech Inc, we observe fluctuations in the working capital turnover ratio over the past several quarters. The ratio has shown variability, with peaks and troughs observed at different points in time.
In the most recent quarter, for September 30, 2024, the working capital turnover ratio stands at 16.82. This indicates that for every dollar of working capital, Tetra Tech generated $16.82 in revenue during this period. Compared to the previous quarter, June 30, 2024, where the ratio was 19.47, there was a slight decrease in efficiency in utilizing working capital to generate revenue.
Analyzing the trend over the past few quarters, we can identify that the working capital turnover ratio has generally been at healthy levels, indicating efficient management of working capital. Notable peaks in the ratio, such as 30.48 on September 30, 2023, suggest particularly strong performance in utilizing working capital effectively to drive revenue generation within the company.
Overall, the trend in the working capital turnover ratio for Tetra Tech Inc indicates that the company has been effectively utilizing its working capital to generate revenue, although there have been fluctuations in efficiency over the various reporting periods.
Peer comparison
Sep 30, 2024