Transdigm Group Incorporated (TDG)
Total 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 |
| Total assets | US$ in thousands | 25,586,000 | 21,828,000 | 21,577,000 | 20,685,000 | 19,970,000 | 19,555,000 | 20,008,000 | 18,489,000 | 18,107,000 | 18,819,000 | 18,841,000 | 19,242,000 | 19,315,000 | 19,089,000 | 18,739,000 | 18,557,000 | 18,395,000 | 18,179,000 | 16,635,000 | 18,156,000 |
| Total asset turnover | 0.31 | 0.35 | 0.34 | 0.34 | 0.33 | 0.32 | 0.29 | 0.30 | 0.30 | 0.28 | 0.27 | 0.25 | 0.25 | 0.25 | 0.24 | 0.26 | 0.28 | 0.30 | 0.36 | 0.31 |
September 30, 2024 calculation
Total asset turnover = Revenue (ttm) ÷ Total assets
= $7,940,000K ÷ $25,586,000K
= 0.31
Transdigm Group Incorporated's total asset turnover ratio reflects the company's ability to generate sales from its assets. The trend of total asset turnover over the past few quarters shows some variability but generally remains within a relatively stable range. The latest total asset turnover ratio of 0.31 indicates that the company generates $0.31 in sales for every dollar of assets.
It is important to note that a higher total asset turnover ratio typically indicates more efficient asset utilization, as the company is generating more sales relative to its asset base. In comparison to the historical trend, the current ratio of 0.31 is slightly below the ratios observed in the preceding quarters.
This could suggest a decrease in efficiency in utilizing assets to generate revenue. It is advisable for investors and analysts to further investigate the reasons behind this decline and assess whether it is a temporary fluctuation or a more significant concern for the company's operational performance and future prospects.