Tetra Tech Inc (TTEK)
Operating return on assets (Operating ROA)
| Sep 30, 2024 | Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | ||
|---|---|---|---|---|---|---|
| Operating income | US$ in thousands | 500,737 | 358,113 | 340,446 | 278,701 | 241,091 |
| Total assets | US$ in thousands | 4,192,680 | 3,820,480 | 2,622,780 | 2,576,560 | 2,378,560 |
| Operating ROA | 11.94% | 9.37% | 12.98% | 10.82% | 10.14% |
September 30, 2024 calculation
Operating ROA = Operating income ÷ Total assets
= $500,737K ÷ $4,192,680K
= 11.94%
The operating return on assets (operating ROA) for Tetra Tech Inc has demonstrated fluctuations over the past five years. In the most recent period ending on September 30, 2024, the operating ROA increased to 11.94%, marking an improvement from the previous fiscal year. This suggests that the company was able to generate more operating income relative to its total assets in the most recent period.
Compared to the performance in fiscal year 2023, where the operating ROA was 9.37%, the recent increase indicates enhanced operational efficiency and profitability. The higher operating ROA in 2024 may be attributed to effective management of assets and operational activities, resulting in a better utilization of resources to generate income.
When looking at the trend over the five-year period, fluctuations in operating ROA are evident. While the operating ROA was relatively high in 2022 at 12.98%, it dipped in 2023 but recovered in 2024. This variability in performance may suggest changes in the company's operating efficiency, profitability, or asset management strategies over the years.
Overall, the recent increase in operating ROA for Tetra Tech Inc is a positive indication of improved profitability and efficiency in utilizing its assets to generate operating income. Continued monitoring of operating ROA and an analysis of underlying factors contributing to its fluctuations will be essential for assessing the company's financial performance and sustainability going forward.
Peer comparison
Sep 30, 2024