Tetra Tech Inc (TTEK)
Debt-to-capital ratio
| Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | Sep 30, 2019 | ||
|---|---|---|---|---|---|---|
| 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 |
| Debt-to-capital ratio | 0.39 | 0.17 | 0.14 | 0.19 | 0.21 |
September 30, 2023 calculation
Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $879,529K ÷ ($879,529K + $1,403,430K)
= 0.39
The debt-to-capital ratio of Tetra Tech Inc has exhibited fluctuations over the past five years. In September 2023, the ratio stood at 0.39, indicating that 39% of the company's capital structure was funded by debt. This represented a significant increase compared to the previous year when the ratio was 0.17.
The sharp rise in the debt-to-capital ratio from 2022 to 2023 suggests that Tetra Tech Inc may have taken on more debt to finance its operations or growth initiatives during the period. It is worth noting that the ratio in 2023 is higher than the ratios in 2021 and 2020, which were 0.14 and 0.19, respectively.
However, despite the recent increase, the current debt-to-capital ratio of 0.39 is still lower than the ratio in 2019, which was 0.21. This implies that Tetra Tech Inc has managed to maintain a relatively lower level of debt relative to its capital base in 2023 compared to four years ago.
Overall, the upward trend in the debt-to-capital ratio from 2022 to 2023 indicates a shift towards a more debt-financed capital structure for Tetra Tech Inc, which could have implications for the company's financial risk and flexibility in the future.
Peer comparison
Sep 30, 2023