Tetra Tech Inc (TTEK)
Cash ratio
| Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | Sep 30, 2019 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 168,831 | 185,094 | 166,568 | 157,515 | 120,732 |
| Short-term investments | US$ in thousands | — | — | — | 7,332 | — |
| Total current liabilities | US$ in thousands | 1,208,140 | 916,017 | 848,483 | 793,456 | 769,954 |
| Cash ratio | 0.14 | 0.20 | 0.20 | 0.21 | 0.16 |
September 30, 2023 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($168,831K
+ $—K)
÷ $1,208,140K
= 0.14
The cash ratio of Tetra Tech Inc has shown a decreasing trend over the past five years, indicating a potential decline in the company's ability to cover its short-term liabilities with its cash and cash equivalents.
In the most recent fiscal year ending September 30, 2023, the cash ratio was 0.14, lower than the previous year's ratio of 0.20. This may suggest that Tetra Tech Inc has a lower level of cash relative to its current liabilities, which could potentially pose liquidity challenges.
Comparing the cash ratio to the ratios from earlier years, the company's liquidity position appears to have weakened gradually since the higher ratio of 0.21 in September 30, 2020, and 0.20 in September 30, 2021. However, it is worth noting that the ratio of 0.14 in 2023 is still higher than the ratio of 0.16 in September 30, 2019.
Overall, the decreasing trend in Tetra Tech Inc's cash ratio raises concerns about its ability to meet its short-term financial obligations solely with its available cash resources. Management may need to closely monitor and potentially improve the company's liquidity position to ensure financial stability and sustainability.
Peer comparison
Sep 30, 2023