Transdigm Group Incorporated (TDG)
Operating return on assets (Operating ROA)
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Operating income (ttm) | US$ in thousands | 3,531,000 | 3,444,000 | 3,293,000 | 3,121,000 | 2,924,000 | 2,709,000 | 2,525,000 | 2,350,000 | 2,215,000 | 2,109,000 | 1,957,000 | 1,831,000 | 1,691,000 | 1,468,000 | 1,307,000 | 1,505,000 | 1,750,000 | 2,052,000 | 2,189,000 | 2,065,000 |
| Total assets | US$ in thousands | 25,586,000 | 21,828,000 | 21,577,000 | 20,685,000 | 19,970,000 | 19,555,000 | 20,008,000 | 18,489,000 | 18,107,000 | 18,819,000 | 18,841,000 | 19,242,000 | 19,315,000 | 19,089,000 | 18,739,000 | 18,557,000 | 18,395,000 | 18,179,000 | 16,635,000 | 18,156,000 |
| Operating ROA | 13.80% | 15.78% | 15.26% | 15.09% | 14.64% | 13.85% | 12.62% | 12.71% | 12.23% | 11.21% | 10.39% | 9.52% | 8.75% | 7.69% | 6.97% | 8.11% | 9.51% | 11.29% | 13.16% | 11.37% |
September 30, 2024 calculation
Operating ROA = Operating income (ttm) ÷ Total assets
= $3,531,000K ÷ $25,586,000K
= 13.80%
Transdigm Group Incorporated's operating return on assets (operating ROA) has shown a generally increasing trend over the past eight quarters, indicating improved efficiency in generating operating profits relative to its assets. The operating ROA has consistently increased from 11.37% in December 2019 to 15.78% in June 2024. This signifies that the company has been able to effectively utilize its assets to generate operating income.
The average operating ROA over the 20 quarters is approximately 11.96%. This suggests that, on average, Transdigm Group Incorporated has been able to generate operating profits equal to nearly 12% of its total assets. The increasing trend in operating ROA reflects positively on the company's operational efficiency and effectiveness in utilizing its assets to create value for shareholders.
It is important for investors and stakeholders to monitor this metric over time to assess the company's operational performance and ability to generate returns on its assets. Overall, the improving trend in operating ROA for Transdigm Group Incorporated is a positive indicator of the company's operational efficiency and effectiveness in managing its assets.