Tetra Tech Inc (TTEK)
Return on assets (ROA)
| Sep 30, 2024 | Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 333,382 | 273,420 | 263,125 | 232,810 | 173,859 |
| Total assets | US$ in thousands | 4,192,680 | 3,820,480 | 2,622,780 | 2,576,560 | 2,378,560 |
| ROA | 7.95% | 7.16% | 10.03% | 9.04% | 7.31% |
September 30, 2024 calculation
ROA = Net income ÷ Total assets
= $333,382K ÷ $4,192,680K
= 7.95%
Tetra Tech Inc's return on assets (ROA) measures its efficiency in generating profits from its assets. Over the past five years, Tetra Tech's ROA has fluctuated, indicating varying levels of asset utilization and profitability.
In 2024, Tetra Tech's ROA was 7.95%, which represents a slight increase from the previous year's 7.16%. This improvement suggests that the company was more effective in generating earnings relative to its total assets.
Comparing 2024 to 2022, Tetra Tech's ROA decreased from 10.03% to 7.95%. This decline may indicate a potential decrease in asset efficiency or profitability during this period.
However, Tetra Tech's ROA in 2024 is still higher than that of 2020, where it was 7.31%. This suggests that the company's asset utilization and profitability have strengthened over the longer term.
Although ROA is just one financial metric, these trends in Tetra Tech's ROA suggest fluctuations in the company's ability to generate earnings from its assets. Further analysis and consideration of other financial ratios are recommended to gain a comprehensive understanding of Tetra Tech's overall financial performance.
Peer comparison
Sep 30, 2024