Tetra Tech Inc (TTEK)
Financial leverage ratio
| Sep 30, 2024 | Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 4,192,680 | 3,820,480 | 2,622,780 | 2,576,560 | 2,378,560 |
| Total stockholders’ equity | US$ in thousands | 1,830,320 | 1,403,430 | 1,183,090 | 1,234,240 | 1,037,320 |
| Financial leverage ratio | 2.29 | 2.72 | 2.22 | 2.09 | 2.29 |
September 30, 2024 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $4,192,680K ÷ $1,830,320K
= 2.29
The financial leverage ratio of Tetra Tech Inc has shown some fluctuations over the past five years. In 2024, the ratio stands at 2.29, indicating that for every dollar of equity, the company has $2.29 of debt. This suggests that the company relies more on debt financing compared to equity.
Comparing this to the previous years, we observe a downward trend from 2.72 in 2023 to 2.29 in 2020, with some fluctuations in between. A higher financial leverage ratio generally implies higher financial risk due to increased reliance on debt.
It is essential for investors and stakeholders to monitor this ratio to ensure the company's financial health and ability to meet its debt obligations in the long term. Further analysis of the company's debt structure and overall financial health would provide more insights into the implications of the financial leverage ratio.
Peer comparison
Sep 30, 2024