Tetra Tech Inc (TTEK)
Return on total capital
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 377,144 | 358,113 | 345,538 | 331,768 | 345,277 | 340,447 | 327,481 | 313,383 | 299,670 | 278,702 | 263,601 | 257,319 | 244,042 | 241,092 | 195,022 | 196,338 | 196,353 | 188,762 | 211,382 | 202,037 |
| Long-term debt | US$ in thousands | 945,319 | 879,529 | 906,875 | 1,065,000 | 234,120 | 246,250 | 234,375 | 237,500 | 246,875 | 200,000 | 234,020 | 238,339 | 275,983 | 242,395 | — | — | — | 263,934 | — | — |
| 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 |
| Return on total capital | 15.19% | 15.69% | 14.64% | 13.71% | 22.16% | 23.82% | 22.75% | 21.14% | 20.18% | 19.43% | 18.48% | 18.57% | 17.67% | 18.84% | 19.64% | 20.66% | 19.13% | 15.06% | 20.81% | 20.40% |
December 31, 2023 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $377,144K ÷ ($945,319K + $1,537,610K)
= 15.19%
To analyze Tetra Tech, Inc.'s return on total capital, we observe fluctuations in the ratio over the past eight quarters. The return on total capital has ranged from a low of 14.97% in Q2 2023 to a high of 23.63% in Q4 2022. Notably, the ratio has generally shown a strong performance, consistently above 20% in the last three quarters of 2022 and showing a slight decline in Q1 2024 to 17.49%.
Overall, Tetra Tech, Inc. has demonstrated an ability to generate solid returns on its total capital over the analyzed period, with slight fluctuations quarter to quarter. This suggests efficient capital utilization and profitability, indicating the company's effective management of its assets and liabilities to generate value for its stakeholders.
Peer comparison
Dec 31, 2023