Tetra Tech Inc (TTEK)
Return on total capital
| Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 500,737 | 464,771 | 433,816 | 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 |
| Long-term debt | US$ in thousands | — | 861,830 | 951,031 | 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 | — | — | — |
| Total stockholders’ equity | US$ in thousands | 1,830,320 | 1,666,140 | 1,584,790 | 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 |
| Return on total capital | 27.36% | 18.39% | 17.11% | 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% |
September 30, 2024 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $500,737K ÷ ($—K + $1,830,320K)
= 27.36%
Tetra Tech Inc has demonstrated a consistently favorable trend in its return on total capital over the past several quarters. The return on total capital has generally been on an upward trajectory, reaching 27.36% as of September 30, 2024. This indicates that the company has been effectively generating returns from its total capital employed in the business.
The improvement in return on total capital reflects Tetra Tech's ability to efficiently utilize its capital resources to generate profits. Investors and stakeholders may view this positively as it suggests that the company is effectively managing its capital investments and generating a satisfactory return for its shareholders.
The upward trend in return on total capital also signals that Tetra Tech's financial performance has been improving over time, possibly due to effective operational management, strategic investments, or increased profitability. Overall, the consistent increase in return on total capital showcases Tetra Tech's financial strength and efficiency in utilizing its capital to drive profitability.
Peer comparison
Sep 30, 2024