Tetra Tech Inc (TTEK)
Debt-to-capital ratio
| Sep 30, 2024 | Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | ||
|---|---|---|---|---|---|---|
| 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 |
| Debt-to-capital ratio | 0.00 | 0.39 | 0.17 | 0.14 | 0.19 |
September 30, 2024 calculation
Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $—K ÷ ($—K + $1,830,320K)
= 0.00
The debt-to-capital ratio of Tetra Tech Inc has shown a decreasing trend over the past five years, indicating a lower reliance on debt to finance its operations and investments. The ratio was at 0.19 in Sep 30, 2020, but has since declined to 0.14 in Sep 30, 2021, further decreasing to 0.17 in Sep 30, 2022, and dropping to 0.39 in Sep 30, 2023 before reaching the lowest point of 0.00 in Sep 30, 2024.
This downward trend suggests that Tetra Tech Inc has been reducing its debt levels relative to its capital base, which can be a positive sign of financial health and stability. It signifies that the company has been managing its debt obligations effectively. However, a debt-to-capital ratio of 0.00 in Sep 30, 2024 may also indicate that the company may be financing its operations more through equity or other sources of capital rather than taking on debt.
Overall, a declining debt-to-capital ratio generally indicates a stronger financial position and lower risk of financial distress for Tetra Tech Inc.
Peer comparison
Sep 30, 2024