Tetra Tech Inc (TTEK)
Profitability ratios
Return on sales
| Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | Sep 30, 2019 | |
|---|---|---|---|---|---|
| Gross profit margin | 16.22% | 16.49% | 15.57% | 14.93% | 13.14% |
| Operating profit margin | 8.01% | 9.75% | 8.71% | 8.06% | 6.07% |
| Pretax margin | 8.97% | 9.99% | 8.34% | 7.62% | 5.63% |
| Net profit margin | 6.12% | 7.54% | 7.27% | 5.81% | 5.11% |
Tetra Tech Inc's profitability ratios have shown overall positive trends over the past five years.
The gross profit margin has been relatively stable, gradually increasing from 13.14% in 2019 to 16.22% in 2023. This indicates that the company has been effectively managing its cost of goods sold and maintaining a healthy margin on its products or services.
The operating profit margin has fluctuated but generally improved over time, from 6.07% in 2019 to 8.01% in 2023. This suggests that Tetra Tech has been able to control its operating expenses more efficiently and generate higher profits from its core business operations.
Similarly, the pretax margin has shown an increasing trend over the years, reaching 8.97% in 2023. This indicates that the company is effectively managing its financial costs and other expenses, resulting in higher profitability before taxes.
The net profit margin, reflecting the company's bottom line profitability, has also demonstrated improvement over the years. It has increased from 5.11% in 2019 to 6.12% in 2023, indicating that Tetra Tech has been successful in generating higher profits relative to its total revenue.
Overall, Tetra Tech's profitability ratios have shown positive trends, with improvements in gross profit margin, operating profit margin, pretax margin, and net profit margin over the past five years. This suggests that the company has been effectively managing its costs, expenses, and overall financial performance to enhance profitability and create value for its stakeholders.
Return on investment
| Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | Sep 30, 2019 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 9.37% | 12.98% | 10.82% | 10.14% | 8.79% |
| Return on assets (ROA) | 7.16% | 10.03% | 9.04% | 7.31% | 7.39% |
| Return on total capital | 15.69% | 23.82% | 19.43% | 18.84% | 15.06% |
| Return on equity (ROE) | 19.48% | 22.24% | 18.86% | 16.76% | 16.04% |
Tetra Tech Inc's profitability ratios have shown fluctuations over the past five years. The operating return on assets (Operating ROA) has ranged from 8.79% in 2019 to 12.98% in 2022, with a current value of 9.37% as of September 30, 2023. This ratio indicates that the company generated a profit of 9.37 cents for every dollar of assets invested in operating activities.
The return on assets (ROA) has varied between 7.31% in 2020 to 10.03% in 2022, and currently stands at 7.16% as of September 30, 2023. This ratio reflects the company's ability to generate profits from its total assets, with the current value indicating a profit of 7.16 cents for every dollar of total assets.
Tetra Tech's return on total capital has ranged from 15.06% in 2019 to 23.82% in 2022, with a current value of 15.69% as of September 30, 2023. This ratio assesses the company's profitability in relation to the total capital invested, indicating a return of 15.69% on total capital.
Lastly, the return on equity (ROE) has fluctuated between 16.04% in 2019 to 22.24% in 2022, with a current value of 19.48% as of September 30, 2023. This ratio measures the return generated on shareholders' equity investment, with the current value indicating a return of 19.48% on equity.
Overall, Tetra Tech Inc's profitability ratios reflect varying levels of efficiency in generating profits from its assets, capital, and equity over the past five years. Investors and stakeholders may use these ratios to evaluate the company's performance and compare it with industry benchmarks.