Transdigm Group Incorporated (TDG)
Inventory 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cost of revenue (ttm) | US$ in thousands | 3,267,000 | 3,100,000 | 2,989,000 | 2,885,000 | 2,742,000 | 2,606,000 | 2,473,000 | 2,401,000 | 2,330,000 | 2,260,000 | 2,241,000 | 2,252,000 | 2,286,000 | 2,369,000 | 2,337,000 | 2,360,000 | 2,457,000 | 2,479,000 | 2,756,000 | 2,649,000 |
| Inventory | US$ in thousands | 1,876,000 | 1,878,000 | 1,753,000 | 1,708,000 | 1,616,000 | 1,603,000 | 1,529,000 | 1,439,000 | 1,332,000 | 1,320,000 | 1,242,000 | 1,215,000 | 1,185,000 | 1,225,000 | 1,240,000 | 1,284,000 | 1,283,000 | 1,344,000 | 1,313,000 | 1,294,000 |
| Inventory turnover | 1.74 | 1.65 | 1.71 | 1.69 | 1.70 | 1.63 | 1.62 | 1.67 | 1.75 | 1.71 | 1.80 | 1.85 | 1.93 | 1.93 | 1.88 | 1.84 | 1.92 | 1.84 | 2.10 | 2.05 |
September 30, 2024 calculation
Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $3,267,000K ÷ $1,876,000K
= 1.74
The inventory turnover of Transdigm Group Incorporated has been fluctuating over the past few years, ranging from a low of 1.62 to a high of 2.10. The inventory turnover ratio indicates how efficiently the company manages its inventory to generate sales.
In recent periods, the inventory turnover has shown a general upward trend, reaching a peak of 2.10 in the first quarter of 2020 before slightly declining. The highest inventory turnover indicates that the company is selling its inventory more frequently within a given period.
Overall, the company's inventory turnover has been relatively stable, with minor fluctuations, suggesting that Transdigm Group is effectively managing its inventory levels to meet customer demand and generate sales. It is essential to monitor future trends in inventory turnover to assess the company's ongoing performance in managing its inventory effectively.