Tetra Tech Inc (TTEK)
Current ratio
| Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | Sep 30, 2019 | ||
|---|---|---|---|---|---|---|
| Total current assets | US$ in thousands | 1,356,020 | 1,158,220 | 1,065,950 | 999,785 | 1,079,790 |
| Total current liabilities | US$ in thousands | 1,208,140 | 916,017 | 848,483 | 793,456 | 769,954 |
| Current ratio | 1.12 | 1.26 | 1.26 | 1.26 | 1.40 |
September 30, 2023 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $1,356,020K ÷ $1,208,140K
= 1.12
The current ratio of Tetra Tech Inc has shown a declining trend over the past five years, from 1.40 in 2019 to 1.12 in 2023. This indicates a potential weakening in the company's short-term liquidity position.
A current ratio below 1 would suggest that the company may have difficulties meeting its short-term obligations with its current assets alone. However, Tetra Tech Inc's current ratio has remained above 1 in all years, indicating that the company has had sufficient current assets to cover its current liabilities.
Although a current ratio of 1.12 in 2023 may raise some concerns about the company's ability to meet its short-term obligations, it is essential to consider other factors and industry standards to obtain a comprehensive assessment of Tetra Tech Inc's financial health. It would be valuable to analyze the trend in conjunction with other financial ratios and financial performance indicators to gain a more comprehensive understanding.
Peer comparison
Sep 30, 2023