Transdigm Group Incorporated (TDG)
Profitability ratios
Return on sales
| Sep 30, 2024 | Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | |
|---|---|---|---|---|---|
| Gross profit margin | 58.84% | 58.34% | 57.08% | 52.38% | 51.87% |
| Operating profit margin | 44.47% | 44.39% | 40.80% | 35.24% | 34.31% |
| Pretax margin | 27.88% | 26.04% | 20.76% | 14.88% | 15.40% |
| Net profit margin | 21.59% | 19.71% | 15.95% | 14.17% | 13.70% |
Transdigm Group Incorporated has demonstrated a consistent improvement in its profitability ratios over the past five years, as indicated by its gross profit margin, operating profit margin, pretax margin, and net profit margin.
The company's gross profit margin has shown a positive trend, increasing from 51.87% in 2020 to 58.84% in 2024. This indicates that Transdigm has been effectively managing its cost of goods sold and generating higher margins on its products.
Similarly, the operating profit margin has also improved steadily, rising from 34.31% in 2020 to 44.47% in 2024. This suggests that the company has been successful in controlling its operating expenses and operating more efficiently.
The pretax margin has shown significant growth over the period, increasing from 14.88% in 2021 to 27.88% in 2024. This indicates that Transdigm has been able to generate higher profits before taxes relative to its revenue, showcasing strong financial performance and effective tax management.
Furthermore, the net profit margin has consistently increased from 13.70% in 2020 to 21.59% in 2024, indicating that the company has been successful in managing its expenses and generating higher profits for its shareholders.
Overall, Transdigm Group Incorporated's profitability ratios reflect a positive trend, demonstrating efficient cost management, operational performance, and increasing profitability over the past five years.
Return on investment
| Sep 30, 2024 | Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 13.80% | 14.64% | 12.23% | 8.75% | 9.52% |
| Return on assets (ROA) | 6.70% | 6.50% | 4.78% | 3.52% | 3.80% |
| Return on total capital | — | — | — | — | 11.36% |
| Return on equity (ROE) | — | — | — | — | — |
Transdigm Group Incorporated has shown consistently positive profitability ratios over the past five years. The operating return on assets (Operating ROA) has ranged from 8.75% to 14.64%, indicating the company's ability to generate operating income relative to its total assets. The Return on assets (ROA) has also been positive, ranging from 3.52% to 6.70%, demonstrating the company's efficiency in generating profits from its assets.
However, there is missing data for the Return on total capital and Return on equity (ROE) for the company, which limits a comprehensive analysis of its profitability from a capital and shareholder perspective.
Overall, based on the data available, Transdigm Group Incorporated appears to have maintained a solid profitability performance, showcasing effectiveness in utilizing its assets to generate profits for its stakeholders.