Transdigm Group Incorporated (TDG)
Cash ratio
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 6,261,000 | 3,360,000 | 4,288,000 | 4,135,000 | 3,472,000 | 3,071,000 | 3,418,000 | 3,288,000 | 3,001,000 | 3,808,000 | 4,216,000 | 4,813,000 | 4,787,000 | 4,529,000 | 4,072,000 | 4,907,000 | 4,717,000 | 4,549,000 | 2,668,000 | 4,194,000 |
| Short-term investments | US$ in thousands | — | 61,000 | 76,000 | 75,000 | 103,000 | 110,000 | 82,000 | 90,000 | 77,000 | 3,000 | — | — | 8,000 | — | — | — | — | — | — | — |
| Total current liabilities | US$ in thousands | 6,339,000 | 1,851,000 | 2,235,000 | 1,818,000 | 1,579,000 | 1,533,000 | 2,522,000 | 1,408,000 | 1,426,000 | 1,344,000 | 1,301,000 | 1,378,000 | 1,663,000 | 1,636,000 | 1,580,000 | 1,563,000 | 1,616,000 | 1,651,000 | 1,656,000 | 3,350,000 |
| Cash ratio | 0.99 | 1.85 | 1.95 | 2.32 | 2.26 | 2.08 | 1.39 | 2.40 | 2.16 | 2.84 | 3.24 | 3.49 | 2.88 | 2.77 | 2.58 | 3.14 | 2.92 | 2.76 | 1.61 | 1.25 |
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 shown some fluctuations over the past few quarters. The cash ratio measures the company's ability to cover its short-term obligations solely with its cash and cash equivalents. A higher cash ratio is typically favorable as it indicates that the company has enough liquid assets to cover its current liabilities.
In the most recent quarter as of September 30, 2024, Transdigm's cash ratio stood at 0.99, which indicates that the company had just enough cash and equivalents to cover 99% of its short-term liabilities at that point in time. This ratio has decreased from the previous quarter, which may signal a reduction in the company's liquidity position.
Looking at historical trends, the company's cash ratio has generally been above 1, indicating a healthy ability to meet short-term obligations with its cash holdings. However, there have been fluctuations in the ratio over time, possibly influenced by changes in the company's cash position or short-term liabilities.
It is important for investors and stakeholders to monitor the cash ratio over time to assess Transdigm's liquidity risk and financial health. A declining trend in the cash ratio may warrant further investigation into the company's cash management practices and financial stability.