Tetra Tech Inc (TTEK)
Return on equity (ROE)
| 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 stockholders’ equity | US$ in thousands | 1,537,610 | 1,403,430 | 1,452,720 | 1,355,600 | 1,323,910 | 1,183,090 | 1,205,010 | 1,244,600 | 1,237,880 | 1,234,240 | 1,192,400 | 1,147,150 | 1,105,190 | 1,037,320 | 992,894 | 950,108 | 1,026,590 | 989,286 | 1,015,610 | 990,445 |
| ROE | 19.74% | 22.85% | 21.21% | 24.47% | 26.08% | 28.78% | 27.18% | 23.74% | 21.53% | 18.77% | 18.16% | 18.32% | 18.19% | 18.89% | 15.09% | 16.17% | 16.86% | 16.96% | 18.75% | 19.86% |
December 31, 2023 calculation
ROE = Net income (ttm) ÷ Total stockholders’ equity
= $303,595K ÷ $1,537,610K
= 19.74%
To analyze Tetra Tech, Inc.'s return on equity (ROE) trend, we can see a generally declining pattern over the past eight quarters. The ROE has decreased from 23.52% in Q1 2023 to 15.07% in Q1 2024. This indicates a potential decrease in the company's efficiency in generating profits relative to its shareholders' equity over time.
The ROE peaked at 23.52% in Q1 2023 and has since been on a downward trend. This decreasing trend may suggest challenges in maintaining profitability levels or managing assets efficiently. A declining ROE could be a cause for concern for investors as it indicates a lower return on their investments in the company.
It is essential for Tetra Tech, Inc. to investigate the reasons behind the declining ROE trend and take necessary actions to improve efficiency, profitability, and overall financial performance. Management should focus on strategies to enhance operational efficiency, increase profitability, and optimize the utilization of shareholders' equity to drive ROE back to healthier levels.
Peer comparison
Dec 31, 2023