Tetra Tech Inc (TTEK)
Quick ratio
| Sep 30, 2024 | Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | ||
|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 232,689 | 168,831 | 185,094 | 166,568 | 157,515 |
| Short-term investments | US$ in thousands | — | — | — | — | 7,332 |
| Receivables | US$ in thousands | 1,073,430 | 984,158 | 755,112 | 683,258 | 668,544 |
| Total current liabilities | US$ in thousands | 1,219,530 | 1,208,140 | 916,017 | 848,483 | 793,456 |
| Quick ratio | 1.07 | 0.95 | 1.03 | 1.00 | 1.05 |
September 30, 2024 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($232,689K
+ $—K
+ $1,073,430K)
÷ $1,219,530K
= 1.07
The quick ratio of Tetra Tech Inc has shown variations over the past five years. The quick ratio measures the company's ability to meet its short-term obligations with its most liquid assets.
In 2024, the quick ratio improved to 1.07, indicating that Tetra Tech had $1.07 of liquid assets available to cover each dollar of current liabilities. This suggests a strong ability to meet short-term obligations without relying heavily on inventory.
In 2023, the quick ratio was 0.95, which was a slight decrease from the previous year. A quick ratio below 1 may signal potential liquidity concerns or challenges in meeting short-term obligations.
In 2022, the quick ratio increased to 1.03, indicating a better ability to cover short-term liabilities with liquid assets compared to the previous year.
In 2021, the quick ratio was 1.00, suggesting that Tetra Tech had just enough liquid assets to cover its current liabilities. This could indicate a relatively balanced liquidity position.
In 2020, the quick ratio was 1.05, showing a slightly stronger liquidity position compared to the following years.
Overall, Tetra Tech's quick ratio has fluctuated within a relatively healthy range above 1, except for 2023 when it dipped below that level. It is important for the company to maintain a strong quick ratio to ensure it can meet its short-term obligations efficiently.
Peer comparison
Sep 30, 2024