Tetra Tech Inc (TTEK)
Quick ratio
| Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | Sep 30, 2019 | ||
|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 168,831 | 185,094 | 166,568 | 157,515 | 120,732 |
| Short-term investments | US$ in thousands | — | — | — | 7,332 | — |
| Receivables | US$ in thousands | 984,158 | 755,112 | 683,258 | 668,544 | 782,540 |
| Total current liabilities | US$ in thousands | 1,208,140 | 916,017 | 848,483 | 793,456 | 769,954 |
| Quick ratio | 0.95 | 1.03 | 1.00 | 1.05 | 1.17 |
September 30, 2023 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($168,831K
+ $—K
+ $984,158K)
÷ $1,208,140K
= 0.95
The quick ratio, also known as the acid-test ratio, measures a company's ability to meet its short-term liabilities with its most liquid assets. A quick ratio of 1.0 or higher is generally considered healthy, as it indicates that the company has enough liquid assets to cover its short-term obligations.
For Tetra Tech Inc, the quick ratio has been relatively stable over the past five years, ranging from 0.95 to 1.17. In 2023, the quick ratio decreased to 0.95 from 1.03 in 2022, which may indicate a slight decline in the company's short-term liquidity compared to the previous year.
While a quick ratio of 0.95 is slightly below the ideal threshold of 1.0, Tetra Tech Inc still has enough liquid assets to cover its short-term liabilities. However, investors and analysts may want to monitor this ratio closely in future periods to ensure that the company's liquidity position remains strong and stable.
Peer comparison
Sep 30, 2023