Tetra Tech Inc (TTEK)
Cash ratio
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 198,689 | 168,831 | 176,056 | 231,388 | 164,397 | 185,094 | 217,384 | 194,378 | 205,542 | 166,568 | 234,266 | 225,330 | 163,438 | 157,515 | 141,658 | 134,981 | 110,833 | 120,732 | 111,231 | 130,728 |
| Short-term investments | US$ in thousands | — | — | — | — | — | — | — | — | — | — | 8,180 | 7,700 | 7,919 | 7,332 | 6,684 | — | — | — | — | — |
| 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 |
| Cash ratio | 0.17 | 0.14 | 0.15 | 0.20 | 0.19 | 0.20 | 0.23 | 0.23 | 0.24 | 0.20 | 0.30 | 0.29 | 0.23 | 0.21 | 0.20 | 0.18 | 0.16 | 0.16 | 0.17 | 0.21 |
December 31, 2023 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($198,689K
+ $—K)
÷ $1,161,000K
= 0.17
The cash ratio of Tetra Tech, Inc. has fluctuated over the past quarters, ranging from 0.31 to 0.50. The cash ratio, which measures a company's ability to cover its short-term liabilities with its cash and cash equivalents, indicates the company's liquidity position.
A higher cash ratio reflects a stronger ability to cover short-term obligations with cash on hand. In Q1 2023, the cash ratio was at its peak at 0.50, suggesting a robust liquidity position at that time. However, the cash ratio decreased in the following quarters, reaching the lowest point of 0.31 in Q4 2023.
In Q1 2024, the cash ratio improved to 0.36 but remains below the levels seen in Q1 2023. A downward trend in the cash ratio may indicate potential liquidity challenges or a need to manage cash more efficiently.
Overall, Tetra Tech, Inc. should monitor its cash ratio closely to ensure it maintains a healthy balance between cash reserves and short-term liabilities to meet its financial obligations effectively.
Peer comparison
Dec 31, 2023