Tetra Tech Inc (TTEK)
Return on total capital
| Sep 30, 2024 | Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 500,737 | 358,113 | 340,446 | 278,701 | 241,091 |
| Long-term debt | US$ in thousands | — | 879,529 | 246,250 | 200,000 | 242,395 |
| Total stockholders’ equity | US$ in thousands | 1,830,320 | 1,403,430 | 1,183,090 | 1,234,240 | 1,037,320 |
| Return on total capital | 27.36% | 15.69% | 23.82% | 19.43% | 18.84% |
September 30, 2024 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $500,737K ÷ ($—K + $1,830,320K)
= 27.36%
Tetra Tech Inc's return on total capital has shown variability over the past five years. The return on total capital increased from 18.84% in 2020 to 19.43% in 2021, showcasing a positive trend. However, there was a slight decline in 2023 to 15.69% before a significant increase to 27.36% in 2024. This substantial improvement in 2024 indicates that the company has been able to generate a higher return relative to the total capital invested. Overall, the return on total capital for Tetra Tech Inc has demonstrated positive performance, with the most recent year showing a particularly strong outcome.
Peer comparison
Sep 30, 2024