Tetra Tech Inc (TTEK)

Solvency ratios

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
Debt-to-assets ratio 0.00 0.21 0.23 0.24 0.23 0.23 0.27 0.09 0.09 0.09 0.09 0.09 0.08 0.09 0.10 0.11 0.10 0.00 0.00 0.00
Debt-to-capital ratio 0.00 0.34 0.38 0.38 0.39 0.38 0.44 0.15 0.17 0.16 0.16 0.17 0.14 0.16 0.17 0.20 0.19 0.00 0.00 0.00
Debt-to-equity ratio 0.00 0.52 0.60 0.61 0.63 0.62 0.79 0.18 0.21 0.19 0.19 0.20 0.16 0.20 0.21 0.25 0.23 0.00 0.00 0.00
Financial leverage ratio 2.29 2.45 2.57 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

Tetra Tech Inc's solvency ratios provide insight into the company's ability to meet its long-term financial obligations. The Debt-to-assets ratio has shown consistency over the periods, ranging from 0.00 to 0.27, indicating that the company has been able to finance its assets mostly through equity rather than debt.

The Debt-to-capital ratio and Debt-to-equity ratio have shown a similar trend, with both ratios increasing over time. This suggests that Tetra Tech Inc has been gradually increasing its reliance on debt to finance its operations and growth. However, the ratios are still at manageable levels, indicating a reasonable balance between debt and equity in the company's capital structure.

The Financial leverage ratio has fluctuated over the periods but generally shows an increasing trend. This ratio indicates the extent to which Tetra Tech Inc is using debt to finance its assets. The increasing trend suggests a higher level of financial leverage, which can potentially magnify both returns and risks for the company.

Overall, the solvency ratios of Tetra Tech Inc indicate a moderately conservative approach to debt financing, with a gradual increase in leverage over the periods. The company appears to be managing its long-term financial obligations effectively, but investors should closely monitor the trend in these ratios for any signs of increased financial risk.

Coverage ratios

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
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

The interest coverage ratio of Tetra Tech Inc has exhibited fluctuations over the past several quarters. The ratio indicates the company's ability to cover its interest expenses with operating income. A higher interest coverage ratio is generally considered favorable as it suggests that the company is generating enough earnings to meet its interest obligations.

In the most recent quarter ending September 30, 2024, the interest coverage ratio was 13.44, reflecting an increase from the previous quarter. This improvement indicates that Tetra Tech Inc's operating income was 13.44 times its interest expenses during that period.

While the interest coverage ratio has shown variability in recent quarters, it has generally remained above 1, which indicates that the company has been able to meet its interest obligations. However, it is important to note that a declining trend in the interest coverage ratio could raise concerns about the company's ability to service its debt in the long term.

Overall, Tetra Tech Inc's interest coverage ratio analysis suggests that the company has been effectively managing its interest expenses relative to its operating income, but investors and analysts should continue to monitor any changes in this ratio for potential financial risks.