Transdigm Group Incorporated (TDG)
Payables 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 |
| Payables | US$ in thousands | 323,000 | 320,000 | 302,000 | 288,000 | 305,000 | 292,000 | 292,000 | 271,000 | 279,000 | 248,000 | 238,000 | 212,000 | 227,000 | 206,000 | 214,000 | 197,000 | 218,000 | 231,000 | 266,000 | 265,000 |
| Payables turnover | 10.11 | 9.69 | 9.90 | 10.02 | 8.99 | 8.92 | 8.47 | 8.86 | 8.35 | 9.11 | 9.42 | 10.62 | 10.07 | 11.50 | 10.92 | 11.98 | 11.27 | 10.73 | 10.36 | 10.00 |
September 30, 2024 calculation
Payables turnover = Cost of revenue (ttm) ÷ Payables
= $3,267,000K ÷ $323,000K
= 10.11
Transdigm Group Incorporated's payables turnover ratio has fluctuated over the past several quarters, ranging from a low of 8.35 to a high of 11.98. This ratio measures how efficiently the company is managing its accounts payable by calculating the number of times a company pays off its average accounts payable balance during a period.
A higher payables turnover ratio generally indicates that the company is paying off its suppliers more quickly, which can be a positive sign of strong liquidity and effective working capital management. On the other hand, a lower ratio may suggest that the company is taking longer to pay its suppliers, potentially indicating liquidity issues or strained vendor relationships.
Transdigm's payables turnover ratio has mostly been above 8, which suggests the company has been managing its payables effectively. The recent peak at 11.98 in the December 2020 quarter indicates a particularly efficient management of accounts payable during that period. However, it is important to consider the trend over multiple periods to get a clearer picture of the company's payment practices and liquidity management.