Tetra Tech Inc (TTEK)
Profitability ratios
Return on sales
| Sep 30, 2024 | Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | |
|---|---|---|---|---|---|
| Gross profit margin | 16.66% | 16.22% | 16.49% | 15.57% | 14.93% |
| Operating profit margin | 9.63% | 8.01% | 9.75% | 8.71% | 8.06% |
| Pretax margin | 8.91% | 8.97% | 9.99% | 8.34% | 7.62% |
| Net profit margin | 6.41% | 6.12% | 7.54% | 7.27% | 5.81% |
Tetra Tech Inc's profitability ratios have shown a generally positive trend over the past five years. The gross profit margin has steadily increased from 14.93% in 2020 to 16.66% in 2024, indicating the company's ability to effectively manage production costs and generate profits from its core operations.
Similarly, the operating profit margin has also improved, reaching 9.63% in 2024 compared to 8.06% in 2020. This suggests that Tetra Tech has become more efficient in controlling operating expenses and optimizing its operational performance.
The pretax margin, which reflects the company's ability to generate profits before taxes, has shown fluctuations but has mostly maintained an upward trend. In 2024, the pretax margin was 8.91%, slightly lower than 9.99% in 2022. This may indicate variations in tax liabilities or other non-operating factors impacting profitability.
The net profit margin, measuring the final profitability after all expenses, has also demonstrated improvement over the years. In 2024, the net profit margin stood at 6.41%, up from 5.81% in 2020. This indicates that Tetra Tech has successfully managed its overall expenses and is generating higher profits relative to total revenues.
Overall, Tetra Tech's profitability ratios reflect a positive trajectory, showcasing the company's ability to enhance operational efficiency, control costs, and deliver stronger financial performance over time.
Return on investment
| Sep 30, 2024 | Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 11.94% | 9.37% | 12.98% | 10.82% | 10.14% |
| Return on assets (ROA) | 7.95% | 7.16% | 10.03% | 9.04% | 7.31% |
| Return on total capital | 27.36% | 15.69% | 23.82% | 19.43% | 18.84% |
| Return on equity (ROE) | 18.21% | 19.48% | 22.24% | 18.86% | 16.76% |
Tetra Tech Inc's profitability ratios show a consistent performance trend over the past five years. The company's Operating Return on Assets (Operating ROA) has demonstrated improvement, increasing from 10.14% in 2020 to 11.94% in 2024. This indicates that Tetra Tech has been able to generate a higher operating profit relative to its total assets.
Return on Assets (ROA), which measures the company's overall profitability in generating earnings from its assets, has also shown a positive trend, reaching 7.95% in 2024 compared to 7.31% in 2020. This suggests that Tetra Tech has been effectively utilizing its assets to generate profits for its shareholders.
Moreover, the Return on Total Capital ratio has significantly increased over the years, from 18.84% in 2020 to 27.36% in 2024. This indicates that Tetra Tech has been able to generate higher returns for both equity and debt holders, reflecting improved efficiency and profitability.
Lastly, the Return on Equity (ROE) has remained relatively stable, with a slight increase from 16.76% in 2020 to 18.21% in 2024. This indicates that Tetra Tech has been able to generate a consistent return for its shareholders over the years.
Overall, Tetra Tech Inc's profitability ratios show a positive trend, reflecting strong operational performance and effective utilization of assets to generate profits and returns for its stakeholders.