Transdigm Group Incorporated (TDG)
Gross profit margin
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross profit (ttm) | US$ in thousands | 4,673,000 | 4,506,000 | 4,315,000 | 4,092,000 | 3,843,000 | 3,637,000 | 3,424,000 | 3,231,000 | 3,099,000 | 2,938,000 | 2,777,000 | 2,633,000 | 2,513,000 | 2,324,000 | 2,160,000 | 2,386,000 | 2,646,000 | 2,992,000 | 3,214,000 | 3,046,000 |
| Revenue (ttm) | US$ in thousands | 7,940,000 | 7,606,000 | 7,304,000 | 6,977,000 | 6,585,000 | 6,243,000 | 5,897,000 | 5,632,000 | 5,429,000 | 5,198,000 | 5,018,000 | 4,885,000 | 4,799,000 | 4,693,000 | 4,497,000 | 4,746,000 | 5,103,000 | 5,471,000 | 5,970,000 | 5,695,000 |
| Gross profit margin | 58.85% | 59.24% | 59.08% | 58.65% | 58.36% | 58.26% | 58.06% | 57.37% | 57.08% | 56.52% | 55.34% | 53.90% | 52.37% | 49.52% | 48.03% | 50.27% | 51.85% | 54.69% | 53.84% | 53.49% |
September 30, 2024 calculation
Gross profit margin = Gross profit (ttm) ÷ Revenue (ttm)
= $4,673,000K ÷ $7,940,000K
= 58.85%
Transdigm Group Incorporated has shown a generally increasing trend in its gross profit margin over the past few years, indicating efficient management of production costs and pricing strategies. The company's gross profit margin has improved from 53.49% in December 2019 to 58.85% in September 2024. This suggests that Transdigm has been effectively controlling its production expenses while maintaining strong pricing power.
The consistent growth in gross profit margin reflects the company's ability to generate higher profits from its core operations. An increasing gross profit margin is a positive indicator of operational efficiency and can enhance the company's overall profitability. This trend indicates that Transdigm is effectively managing its cost of goods sold and has potential for sustainable growth in the future.
Overall, Transdigm Group's increasing gross profit margin demonstrates financial stability and efficient operations, which can lead to improved shareholder value and sustainable business performance.