Transdigm Group Incorporated (TDG)
Fixed asset turnover
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 7,940,000 | 7,606,000 | 7,304,000 | 6,977,000 | 6,585,000 | 6,243,000 | 5,897,000 | 5,632,000 | 5,429,000 | 5,198,000 | 5,018,000 | 4,885,000 | 4,799,000 | 4,693,000 | 4,497,000 | 4,746,000 | 5,103,000 | 5,471,000 | 5,970,000 | 5,695,000 |
| Property, plant and equipment | US$ in thousands | 1,488,000 | 1,431,000 | 1,288,000 | 1,335,000 | 1,255,000 | 983,000 | 872,000 | 864,000 | 807,000 | 814,000 | 810,000 | 794,000 | 770,000 | 777,000 | 790,000 | 777,000 | 752,000 | 744,000 | 748,000 | 753,000 |
| Fixed asset turnover | 5.34 | 5.32 | 5.67 | 5.23 | 5.25 | 6.35 | 6.76 | 6.52 | 6.73 | 6.39 | 6.20 | 6.15 | 6.23 | 6.04 | 5.69 | 6.11 | 6.79 | 7.35 | 7.98 | 7.56 |
September 30, 2024 calculation
Fixed asset turnover = Revenue (ttm) ÷ Property, plant and equipment
= $7,940,000K ÷ $1,488,000K
= 5.34
Transdigm Group Incorporated has shown a consistent and strong performance in terms of fixed asset turnover over the historical period provided. The fixed asset turnover ratio measures how efficiently the company is generating sales revenue from its investment in fixed assets.
The company's fixed asset turnover ratio has ranged from 5.23 to 7.98 over the past five years, indicating that for each dollar invested in fixed assets, the company is generating between $5.23 to $7.98 in sales revenue. The higher the ratio, the better the company is utilizing its fixed assets to generate sales.
The trend in fixed asset turnover shows a general increase from 2019 to mid-2023, with the ratio peaking at 7.98 in the fourth quarter of 2019. However, there was a slight decline in the ratio in the most recent quarters, indicating a potential decrease in the efficiency of generating sales from fixed assets compared to previous periods.
Overall, Transdigm Group Incorporated has historically maintained a strong fixed asset turnover ratio, demonstrating efficient utilization of its fixed assets to generate revenue. The recent slight decline in the ratio may warrant further analysis to understand the factors influencing this trend and whether it is a temporary fluctuation or a more significant long-term concern.