Transdigm Group Incorporated (TDG)
Gross profit margin
| Sep 30, 2024 | Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | ||
|---|---|---|---|---|---|---|
| Gross profit | US$ in thousands | 4,672,000 | 3,842,000 | 3,099,000 | 2,513,000 | 2,647,000 |
| Revenue | US$ in thousands | 7,940,000 | 6,585,000 | 5,429,000 | 4,798,000 | 5,103,000 |
| Gross profit margin | 58.84% | 58.34% | 57.08% | 52.38% | 51.87% |
September 30, 2024 calculation
Gross profit margin = Gross profit ÷ Revenue
= $4,672,000K ÷ $7,940,000K
= 58.84%
The gross profit margin of Transdigm Group Incorporated has displayed a consistent upward trend over the past five years, reflecting the company's ability to efficiently generate profits from its core operations.
From 2020 to 2021, there was a notable increase in the gross profit margin, which indicates that the company managed to improve its cost management and pricing strategies during this period. This improvement was sustained in subsequent years, with the gross profit margin continuing to rise steadily.
The significant growth in the gross profit margin from 2020 to 2024 showcases Transdigm's effective control over production costs and pricing mechanisms, resulting in a higher proportion of revenue translating into gross profit. This trend suggests operational efficiencies and possibly pricing power in the market.
Overall, the consistent improvement in Transdigm's gross profit margin underscores the company's strong financial performance and operational effectiveness in recent years.