Transdigm Group Incorporated (TDG)
Operating return on assets (Operating ROA)
| Sep 30, 2024 | Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | ||
|---|---|---|---|---|---|---|
| Operating income | US$ in thousands | 3,531,000 | 2,923,000 | 2,215,000 | 1,691,000 | 1,751,000 |
| Total assets | US$ in thousands | 25,586,000 | 19,970,000 | 18,107,000 | 19,315,000 | 18,395,000 |
| Operating ROA | 13.80% | 14.64% | 12.23% | 8.75% | 9.52% |
September 30, 2024 calculation
Operating ROA = Operating income ÷ Total assets
= $3,531,000K ÷ $25,586,000K
= 13.80%
Transdigm Group Incorporated's operating return on assets (operating ROA) has exhibited fluctuations over the past five fiscal years. The trend shows a slight decrease in operating ROA from 2019 to 2020, followed by an increase in 2021, a dip in 2022, and then a rebound in 2023.
The operating ROA for the fiscal year ending September 30, 2024, stood at 13.80%, indicating that the company generated $0.138 of operating income for every dollar of assets employed in the business. This was a slight decrease from the previous year's operating ROA of 14.64%.
Despite the downward trend in 2024, Transdigm Group Incorporated's operating ROA remained relatively strong compared to earlier years, showcasing the company's ability to efficiently utilize its assets to generate operating income. It is essential for the company to closely monitor and manage its asset utilization to ensure sustained profitability and efficiency in operations.