Tetra Tech Inc (TTEK)
Return on total capital
| Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | Sep 30, 2019 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 358,113 | 340,446 | 278,701 | 241,091 | 188,762 |
| Long-term debt | US$ in thousands | 879,529 | 246,250 | 200,000 | 242,395 | 263,934 |
| Total stockholders’ equity | US$ in thousands | 1,403,430 | 1,183,090 | 1,234,240 | 1,037,320 | 989,286 |
| Return on total capital | 15.69% | 23.82% | 19.43% | 18.84% | 15.06% |
September 30, 2023 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $358,113K ÷ ($879,529K + $1,403,430K)
= 15.69%
Tetra Tech Inc's return on total capital has fluctuated over the past five years. In the most recent fiscal year ending on September 30, 2023, the return on total capital was 15.69%, showing a decrease from the previous year's 23.82%. Despite this decline, the return remains within a satisfactory range, indicating the company's ability to generate profits from its invested capital. Over the five-year period, Tetra Tech Inc has shown a generally positive trend in return on total capital, with notable increases in 2022 and 2021 compared to 2020 and 2019. This suggests that the company has been efficient in utilizing its total capital to generate returns for its stakeholders. However, the decrease in 2023 may warrant further investigation into potential factors impacting the company's performance and future profitability.
Peer comparison
Sep 30, 2023