Transdigm Group Incorporated (TDG)
Current 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Total current assets | US$ in thousands | 10,029,000 | 7,061,000 | 8,282,000 | 7,396,000 | 6,738,000 | 6,252,000 | 7,456,000 | 5,929,000 | 5,649,000 | 6,308,000 | 6,564,000 | 6,971,000 | 7,030,000 | 6,723,000 | 6,358,000 | 7,074,000 | 6,960,000 | 6,771,000 | 5,200,000 | 6,652,000 |
| 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 |
| Current ratio | 1.58 | 3.81 | 3.71 | 4.07 | 4.27 | 4.08 | 2.96 | 4.21 | 3.96 | 4.69 | 5.05 | 5.06 | 4.23 | 4.11 | 4.02 | 4.53 | 4.31 | 4.10 | 3.14 | 1.99 |
September 30, 2024 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $10,029,000K ÷ $6,339,000K
= 1.58
Transdigm Group Incorporated's current ratio has fluctuated over the past few years, ranging from 1.58 to 5.06. The current ratio measures the company's ability to meet its short-term liabilities with its current assets. A higher current ratio indicates a stronger liquidity position.
Looking at the trend, the current ratio peaked at 5.06 in the first quarter of 2022, indicating a strong ability to cover short-term obligations. However, it has since decreased, reaching 1.58 in the most recent quarter, which may raise concerns about the company's short-term liquidity.
It is important to note that a current ratio of 1.58 still indicates that Transdigm Group has sufficient current assets to cover its current liabilities. However, the significant decrease from previous periods warrants further investigation into the company's current asset management and liquidity position. The company should focus on maintaining a balance between current assets and liabilities to ensure its ability to meet short-term obligations efficiently.