Transdigm Group Incorporated (TDG)
Receivables turnover
| Sep 30, 2024 | Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 7,940,000 | 6,585,000 | 5,429,000 | 4,798,000 | 5,103,000 |
| Receivables | US$ in thousands | 1,381,000 | 1,230,000 | 967,000 | 791,000 | 720,000 |
| Receivables turnover | 5.75 | 5.35 | 5.61 | 6.07 | 7.09 |
September 30, 2024 calculation
Receivables turnover = Revenue ÷ Receivables
= $7,940,000K ÷ $1,381,000K
= 5.75
Transdigm Group Incorporated's receivables turnover has shown a decreasing trend from 7.09 in 2020 to 5.75 in 2024. The receivables turnover ratio measures how efficiently a company is collecting its accounts receivable during a period. A higher turnover ratio indicates that the company is collecting its receivables more quickly.
The decreasing trend could indicate that Transdigm Group Incorporated is taking longer to collect its accounts receivable over the years, which may pose a risk in terms of cash flow management and liquidity. However, it is essential to consider industry benchmarks and company-specific factors when evaluating the efficiency of receivables turnover.
Further analysis of the company's credit policies, collection procedures, and overall economic conditions could provide insights into the reasons behind the decreasing trend in receivables turnover. Investors and stakeholders may need to monitor this ratio closely to assess the company's ability to manage its accounts receivable effectively.