Transdigm Group Incorporated (TDG)
Quick ratio
| Sep 30, 2024 | Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | ||
|---|---|---|---|---|---|---|
| Cash | 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 | — |
| Receivables | US$ in thousands | 1,381,000 | 1,230,000 | 967,000 | 791,000 | 720,000 |
| Total current liabilities | US$ in thousands | 6,339,000 | 1,579,000 | 1,426,000 | 1,663,000 | 1,616,000 |
| Quick ratio | 1.21 | 3.04 | 2.84 | 3.36 | 3.36 |
September 30, 2024 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($6,261,000K
+ $—K
+ $1,381,000K)
÷ $6,339,000K
= 1.21
The quick ratio of Transdigm Group Incorporated has shown some fluctuation over the past five years. The ratio was 1.21 as of September 30, 2024, which indicates that the company had $1.21 in liquid assets available to cover each dollar of current liabilities.
Compared to the previous year, the quick ratio decreased significantly from 3.04 in September 2023 to 1.21 in September 2024. This decline may raise concerns about the company's short-term liquidity position, as it suggests a potential inability to meet immediate obligations with its quick assets.
However, when looking at the trend over the past five years, the company's quick ratio has generally remained above 1. This indicates that Transdigm Group has had an adequate level of liquid assets relative to its current liabilities, which is a positive sign for its short-term financial stability.
It is essential to delve deeper into the components of the quick ratio, such as cash, marketable securities, and accounts receivable, to understand the underlying factors driving the fluctuations in Transdigm Group's liquidity position. Further analysis and monitoring of the quick ratio in conjunction with other financial metrics would provide a more comprehensive assessment of the company's financial health.