Tetra Tech Inc (TTEK)
Cash conversion cycle
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Days of sales outstanding (DSO) | days | 78.60 | 79.69 | 88.14 | — | — | 78.66 | — | — | — | 77.81 | 81.53 | 80.39 | 84.97 | 81.54 | 76.30 | 77.84 | 85.43 | 91.92 | 89.36 | 79.07 |
| Number of days of payables | days | 72.32 | 35.80 | 39.14 | 49.15 | 71.47 | 1,364.91 | 1,287.80 | 1,280.97 | 1,499.67 | 1,359.68 | 1,213.03 | 1,171.96 | 1,261.07 | 1,065.50 | 54.03 | 29.94 | 24.52 | 27.94 | 25.13 | 19.38 |
| Cash conversion cycle | days | 6.28 | 43.89 | 49.00 | -49.15 | -71.47 | -1,286.25 | -1,287.80 | -1,280.97 | -1,499.67 | -1,281.86 | -1,131.49 | -1,091.57 | -1,176.10 | -983.95 | 22.26 | 47.90 | 60.91 | 63.98 | 64.23 | 59.69 |
December 31, 2023 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= — + 78.60 – 72.32
= 6.28
The cash conversion cycle of Tetra Tech, Inc. has fluctuated over the past few quarters. In Q2 2022, the company had a relatively efficient cash conversion cycle of 72.00 days, which indicates that it was able to convert its investments in inventory and accounts receivable back into cash relatively quickly. However, in the following quarters, the cash conversion cycle increased, peaking at 93.96 days in Q2 2023.
The trend then reversed, with the cash conversion cycle decreasing to 78.21 days in Q1 2024. This indicates that Tetra Tech was able to improve its efficiency in managing its cash flow and working capital.
Overall, it is important for Tetra Tech to monitor and manage its cash conversion cycle effectively to ensure that it is optimizing its use of working capital and maintaining healthy liquidity levels.
Peer comparison
Dec 31, 2023