Tetra Tech Inc (TTEK)
Current 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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 |
| Current ratio | 1.25 | 1.12 | 1.17 | 1.25 | 1.42 | 1.26 | 1.21 | 1.26 | 1.31 | 1.26 | 1.36 | 1.34 | 1.37 | 1.26 | 1.31 | 1.36 | 1.47 | 1.40 | 1.73 | 1.60 |
December 31, 2023 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $1,454,040K ÷ $1,161,000K
= 1.25
The current ratio of Tetra Tech, Inc. has fluctuated over the past eight quarters, ranging from a low of 1.12 in Q4 2023 to a high of 1.42 in Q1 2023. The current ratio measures the company's ability to cover its short-term obligations with its current assets. A ratio above 1 indicates that Tetra Tech, Inc. has more current assets than current liabilities, which is generally viewed positively as it suggests the company is able to meet its short-term financial obligations.
The current ratio was somewhat volatile over the period analyzed, with no clear trend evident. However, the ratios have mostly remained above 1, indicating a relatively healthy liquidity position for the company. It is worth noting that a ratio significantly higher than 1 may suggest an inefficient use of assets, while a ratio significantly lower than 1 may indicate potential liquidity issues. Overall, Tetra Tech, Inc.'s current ratio appears to be relatively stable and at acceptable levels, suggesting a sound financial position in terms of short-term liquidity management.
Peer comparison
Dec 31, 2023