Transdigm Group Incorporated (TDG)
Quick 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 | 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 | — | — | — | — | — | — | — |
| Receivables | US$ in thousands | 1,381,000 | 1,300,000 | 1,201,000 | 1,145,000 | 1,230,000 | 1,159,000 | — | 860,000 | 967,000 | — | — | — | 791,000 | — | — | — | — | — | — | — |
| 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 |
| Quick ratio | 1.21 | 2.55 | 2.49 | 2.95 | 3.04 | 2.83 | 1.39 | 3.01 | 2.84 | 2.84 | 3.24 | 3.49 | 3.36 | 2.77 | 2.58 | 3.14 | 2.92 | 2.76 | 1.61 | 1.25 |
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 fluctuations over the past several quarters. The quick ratio, which measures the company's ability to meet its short-term obligations with its most liquid assets, has ranged from a low of 1.21 to a high of 3.49 during this period.
In general, a quick ratio above 1 indicates that the company has an adequate level of liquid assets to cover its short-term liabilities. Transdigm's quick ratio has consistently been above 1, indicating that the company has been able to meet its short-term obligations using its quick assets, such as cash, accounts receivable, and marketable securities.
The trend over the past few quarters shows that Transdigm's quick ratio has generally been healthy, although there have been fluctuations. A potential concern could be the significant decrease in the quick ratio from 3.49 in Q4 2021 to 1.21 in Q3 2024, which may require further investigation to understand the underlying reasons for this decline.
Overall, while the quick ratio provides insights into Transdigm's short-term liquidity position, it is important to consider other financial metrics and factors to gain a comprehensive understanding of the company's financial health and performance.