Transdigm Group Incorporated (TDG)
Current ratio
| Sep 30, 2024 | Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | ||
|---|---|---|---|---|---|---|
| Total current assets | US$ in thousands | 10,029,000 | 6,738,000 | 5,649,000 | 7,030,000 | 6,960,000 |
| Total current liabilities | US$ in thousands | 6,339,000 | 1,579,000 | 1,426,000 | 1,663,000 | 1,616,000 |
| Current ratio | 1.58 | 4.27 | 3.96 | 4.23 | 4.31 |
September 30, 2024 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $10,029,000K ÷ $6,339,000K
= 1.58
The current ratio of Transdigm Group Incorporated has exhibited a declining trend over the past five years, decreasing from 4.31 in 2020 to 1.58 in 2024. This indicates a reduction in the company's ability to meet its short-term obligations using its current assets.
A current ratio below 2.0 typically raises concerns about liquidity and suggests that the company may face challenges in covering its short-term liabilities with its current assets. However, it is essential to consider industry norms and the company's specific circumstances when interpreting the current ratio.
Further analysis and monitoring of Transdigm Group's financial performance and liquidity position are recommended to assess the impact of this declining trend on the company's overall financial health.