Tetra Tech Inc (TTEK)
Financial leverage ratio
| Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 3,950,820 | 3,820,480 | 3,973,580 | 3,985,040 | 2,731,480 | 2,622,780 | 2,677,710 | 2,645,620 | 2,640,460 | 2,576,560 | 2,510,920 | 2,455,060 | 2,414,870 | 2,378,560 | 2,289,310 | 2,343,150 | 2,352,550 | 2,147,410 | 2,096,420 | 1,951,860 |
| Total stockholders’ equity | US$ in thousands | 1,537,610 | 1,403,430 | 1,452,720 | 1,355,600 | 1,323,910 | 1,183,090 | 1,205,010 | 1,244,600 | 1,237,880 | 1,234,240 | 1,192,400 | 1,147,150 | 1,105,190 | 1,037,320 | 992,894 | 950,108 | 1,026,590 | 989,286 | 1,015,610 | 990,445 |
| Financial leverage ratio | 2.57 | 2.72 | 2.74 | 2.94 | 2.06 | 2.22 | 2.22 | 2.13 | 2.13 | 2.09 | 2.11 | 2.14 | 2.19 | 2.29 | 2.31 | 2.47 | 2.29 | 2.17 | 2.06 | 1.97 |
December 31, 2023 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $3,950,820K ÷ $1,537,610K
= 2.57
The financial leverage ratio of Tetra Tech, Inc. has been fluctuating over the past eight quarters, ranging from 2.06 to 2.94. The ratio measures the company's reliance on debt financing relative to equity. A higher ratio indicates a higher proportion of debt in the capital structure, which can be considered riskier due to the obligations associated with debt repayments.
In Q1 2023, the financial leverage ratio was at its lowest at 2.06, suggesting a lower reliance on debt financing compared to the other quarters. This could indicate a stronger equity base or more conservative financing approach during that period.
On the other hand, in Q2 2023, the ratio peaked at 2.94, signaling a significant increase in debt relative to equity. This may have been driven by strategic decisions to leverage debt for growth opportunities, acquisitions, or other investments.
Overall, the fluctuations in Tetra Tech's financial leverage ratio indicate varying levels of risk associated with the company's capital structure and financing decisions during the analyzed periods. It is important for investors and stakeholders to closely monitor these changes to assess the company's financial health and risk profile.
Peer comparison
Dec 31, 2023