Transdigm Group Incorporated (TDG)
Cash ratio
| Sep 30, 2024 | Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 6,261,000 | 3,472,000 | 3,001,000 | 4,787,000 | 4,717,000 |
| Short-term investments | US$ in thousands | — | 103,000 | 77,000 | 8,000 | — |
| Total current liabilities | US$ in thousands | 6,339,000 | 1,579,000 | 1,426,000 | 1,663,000 | 1,616,000 |
| Cash ratio | 0.99 | 2.26 | 2.16 | 2.88 | 2.92 |
September 30, 2024 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($6,261,000K
+ $—K)
÷ $6,339,000K
= 0.99
The cash ratio of Transdigm Group Incorporated has decreased over the past five years, starting at 2.92 in 2020 and declining to 0.99 in 2024. This ratio indicates the company's ability to cover its current liabilities with cash and cash equivalents on hand. A higher ratio suggests a stronger ability to meet short-term obligations without relying on external sources of funding.
The decreasing trend in Transdigm's cash ratio may raise concerns about its liquidity position and ability to manage short-term obligations effectively. It is important for investors and stakeholders to monitor this ratio closely as it can provide insights into the company's financial health and ability to weather economic uncertainties or unexpected cash flow disruptions.