Transdigm Group Incorporated (TDG)
Total asset 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 |
| Total assets | US$ in thousands | 25,586,000 | 19,970,000 | 18,107,000 | 19,315,000 | 18,395,000 |
| Total asset turnover | 0.31 | 0.33 | 0.30 | 0.25 | 0.28 |
September 30, 2024 calculation
Total asset turnover = Revenue ÷ Total assets
= $7,940,000K ÷ $25,586,000K
= 0.31
The total asset turnover ratio of Transdigm Group Incorporated has shown fluctuation over the past five years, ranging from 0.25 in 2021 to 0.33 in 2023. The ratio indicates the company's efficiency in generating revenue relative to its total assets, with higher ratios suggesting better asset utilization.
In 2024, the total asset turnover ratio decreased to 0.31, indicating a slight decline in the company's ability to generate sales from its total assets compared to the previous year. Despite this reduction, the ratio remains within a relatively stable range when compared to the preceding years.
Overall, the trend in Transdigm Group's total asset turnover ratio suggests that the company has been able to effectively generate revenue in relation to its total assets, albeit with some fluctuations. Further analysis of the company's operational efficiency and asset management practices could provide additional insights into its performance and potential areas for improvement.