Tetra Tech Inc (TTEK)
Interest coverage
| Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 500,737 | 464,771 | 433,816 | 377,144 | 358,113 | 345,538 | 331,768 | 345,277 | 340,447 | 327,481 | 313,383 | 299,670 | 278,702 | 263,601 | 257,319 | 244,042 | 241,092 | 195,022 | 196,338 | 196,353 |
| Interest expense (ttm) | US$ in thousands | 37,269 | 42,346 | 47,303 | 50,743 | 46,538 | 36,182 | 24,232 | 14,053 | 11,585 | 12,466 | 12,284 | 11,963 | 12,085 | 11,567 | 12,394 | 13,072 | 13,395 | 14,433 | 14,415 | 14,078 |
| Interest coverage | 13.44 | 10.98 | 9.17 | 7.43 | 7.70 | 9.55 | 13.69 | 24.57 | 29.39 | 26.27 | 25.51 | 25.05 | 23.06 | 22.79 | 20.76 | 18.67 | 18.00 | 13.51 | 13.62 | 13.95 |
September 30, 2024 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $500,737K ÷ $37,269K
= 13.44
Tetra Tech Inc's interest coverage ratio, which measures the company's ability to meet its interest payments on outstanding debt, has fluctuated over the periods examined. The trend shows that the interest coverage ratio was relatively high in recent quarters, indicating that the company has been generating sufficient earnings to cover its interest expenses.
The interest coverage ratio peaked at 29.39 in September 2022, suggesting a strong ability to meet interest obligations during that period. However, there has been a gradual decline since then, with the ratio dropping to 13.44 in September 2024. This decline may indicate a decrease in earnings relative to interest expenses over time.
Overall, the interest coverage ratio indicates that Tetra Tech Inc has historically had a solid ability to cover its interest payments, although recent decreases in the ratio suggest a need for monitoring to ensure the company's financial health.
Peer comparison
Sep 30, 2024