Tetra Tech Inc (TTEK)
Debt-to-equity 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-equity ratio | 0.63 | 0.21 | 0.16 | 0.23 | 0.27 |
September 30, 2023 calculation
Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $879,529K ÷ $1,403,430K
= 0.63
The debt-to-equity ratio of Tetra Tech Inc has exhibited fluctuations over the past five years. In the most recent period, as of September 30, 2023, the ratio stands at 0.63, showing an increase from the previous year. This suggests that the company's reliance on debt has risen relative to its equity.
Comparing this current ratio to that of the prior years, we observe a significant uptick compared to the lower ratios reported in the two preceding years. The ratio was notably higher in 2020 and 2019, standing at 0.23 and 0.27 respectively.
An increasing debt-to-equity ratio can indicate that Tetra Tech Inc is financing a larger portion of its operations through debt rather than equity. While debt can fuel growth and expansion opportunities, it also comes with interest obligations and potential risks if the company faces financial difficulties.
It is crucial for stakeholders to carefully monitor the trend of the debt-to-equity ratio to assess the company's financial health and leverage levels. Trends in this ratio can provide insights into Tetra Tech Inc's capital structure decisions and risk management strategies.
Peer comparison
Sep 30, 2023