Tetra Tech Inc (TTEK)
Working capital 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 current assets | US$ in thousands | 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 | 1,079,790 | 1,116,470 | 998,420 |
| Total current liabilities | US$ in thousands | 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 | 769,954 | 646,897 | 624,442 |
| Working capital turnover | 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 | 10.03 | 6.40 | 7.87 |
December 31, 2023 calculation
Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $4,831,610K ÷ ($1,454,040K – $1,161,000K)
= 16.49
Tetra Tech, Inc.'s working capital turnover ratio fluctuated over the past eight quarters. The highest working capital turnover ratio was observed in Q4 2023 at 30.58, indicating that the company effectively managed its working capital to generate revenue during that period. This high turnover ratio suggests that Tetra Tech efficiently converted its working capital into sales.
Conversely, the lowest working capital turnover ratio was reported in Q1 2023 at 9.72, signaling a relatively lower efficiency in utilizing working capital to drive revenue generation during that quarter.
Overall, Tetra Tech's working capital turnover ratio has shown variability but generally indicates a trend of effectively leveraging its working capital to generate revenue over the analyzed period. The company may benefit from analyzing the factors contributing to the fluctuations in this ratio to maintain or improve its working capital management efficiency in the future.
Peer comparison
Dec 31, 2023