Tetra Tech Inc (TTEK)
Return on assets (ROA)
| Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Net income (ttm) | US$ in thousands | 303,595 | 320,673 | 308,098 | 331,768 | 345,277 | 340,447 | 327,481 | 295,479 | 266,476 | 231,692 | 216,591 | 210,185 | 201,065 | 195,939 | 149,869 | 153,605 | 173,119 | 167,806 | 190,426 | 196,689 |
| Total assets | US$ in thousands | 3,950,820 | 3,820,480 | 3,973,580 | 3,985,040 | 2,731,480 | 2,622,780 | 2,677,710 | 2,645,620 | 2,640,460 | 2,576,560 | 2,510,920 | 2,455,060 | 2,414,870 | 2,378,560 | 2,289,310 | 2,343,150 | 2,352,550 | 2,147,410 | 2,096,420 | 1,951,860 |
| ROA | 7.68% | 8.39% | 7.75% | 8.33% | 12.64% | 12.98% | 12.23% | 11.17% | 10.09% | 8.99% | 8.63% | 8.56% | 8.33% | 8.24% | 6.55% | 6.56% | 7.36% | 7.81% | 9.08% | 10.08% |
December 31, 2023 calculation
ROA = Net income (ttm) ÷ Total assets
= $303,595K ÷ $3,950,820K
= 7.68%
To analyze Tetra Tech, Inc.'s return on assets (ROA) performance based on the provided data, we observe fluctuations in ROA over the past eight quarters. ROA measures the company's ability to generate profit relative to its total assets.
Tetra Tech's ROA has shown some variability over the quarters, ranging from a low of 5.86% in Q1 2024 to a high of 11.40% in Q1 2023. The downward trend from the peak in Q1 2023 indicates a decline in profitability relative to its asset base in the subsequent quarters. Although the ROA in Q1 2024 improved compared to the previous quarter, it remains below the levels observed in Q2 and Q3 of 2023.
The declining trend in ROA may indicate potential inefficiencies in asset utilization or decreasing profitability relative to the company's asset base. Further investigation into the drivers of this trend, such as changes in revenue, expenses, or asset base, could provide insights into Tetra Tech's overall financial performance and efficiency in generating returns from its assets. Moreover, comparing Tetra Tech's ROA with industry benchmarks or its competitors could offer additional context for evaluating the company's performance in utilizing its assets effectively to generate profits.
Peer comparison
Dec 31, 2023