Tetra Tech Inc (TTEK)
Debt-to-equity 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-equity ratio | 0.00 | 0.63 | 0.21 | 0.16 | 0.23 |
September 30, 2024 calculation
Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $—K ÷ $1,830,320K
= 0.00
The debt-to-equity ratio for Tetra Tech Inc has shown a fluctuating trend over the past five years. In 2020, the ratio was 0.23, indicating that the company had a moderate level of debt relative to its equity. However, there was a significant decrease in the ratio in 2021 to 0.16, signaling a stronger equity position compared to debt. This was further bolstered in 2022 with a ratio of 0.21, suggesting continued improvement in the company's debt management.
Notably, in 2023, Tetra Tech Inc reported a substantial decline in its debt-to-equity ratio to 0.63, signaling a higher level of debt relative to equity. This spike may raise concerns about the company's financial leverage and ability to meet its debt obligations.
However, the company managed to reverse this trend in 2024, as reflected in the debt-to-equity ratio of 0.00, indicating that Tetra Tech Inc had no debt and was entirely financed by equity during that period. While having no debt can be seen as a positive indication of financial strength and stability, it's essential to examine the company's overall financial health and growth prospects in conjunction with this ratio to gain a comprehensive understanding of its financial position.
Peer comparison
Sep 30, 2024