Transdigm Group Incorporated (TDG)
Profitability ratios
Return on sales
| 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 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% |
| Operating profit margin | 44.47% | 45.28% | 45.08% | 44.73% | 44.40% | 43.39% | 42.82% | 41.73% | 40.80% | 40.57% | 39.00% | 37.48% | 35.24% | 31.28% | 29.06% | 31.71% | 34.29% | 37.51% | 36.67% | 36.26% |
| Pretax margin | 27.88% | 28.39% | 27.72% | 27.29% | 26.06% | 24.46% | 23.23% | 21.89% | 20.74% | 20.24% | 19.63% | 17.48% | 14.88% | 10.29% | 6.05% | 10.03% | 15.40% | 20.58% | 21.66% | 21.51% |
| Net profit margin | 21.59% | 21.84% | 21.23% | 20.81% | 19.71% | 18.40% | 17.57% | 16.53% | 15.95% | 15.56% | 17.70% | 16.23% | 14.17% | 11.78% | 5.11% | 9.38% | 13.70% | 17.62% | 18.68% | 17.52% |
Transdigm Group Incorporated has demonstrated a gradual improvement in its profitability ratios over the past few quarters. The gross profit margin has been steadily increasing, showing the company's ability to control direct costs and generate more revenue from its products.
Similarly, the operating profit margin has also been on an upward trend, indicating efficient management of operating expenses and better utilization of resources to generate operating income.
The pretax margin has shown consistent improvement, reflecting the company's ability to earn higher profits before accounting for taxes. This signifies effective cost management and revenue generation strategies implemented by the company's management.
The net profit margin, which represents the final profitability after deducting all expenses including taxes, has also shown an overall positive trend. It indicates that the company is effectively converting its revenue into net income, albeit with fluctuations in certain quarters.
Overall, Transdigm Group Incorporated has been able to maintain and enhance its profitability margins over time, showcasing its operational efficiency and financial stability. Continued monitoring of these trends will be crucial to assess the company's long-term profitability sustainability.
Return on investment
| 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 return on assets (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% |
| Return on assets (ROA) | 6.70% | 7.61% | 7.19% | 7.02% | 6.50% | 5.88% | 5.18% | 5.04% | 4.78% | 4.30% | 4.71% | 4.12% | 3.52% | 2.90% | 1.23% | 2.40% | 3.80% | 5.30% | 6.70% | 5.50% |
| Return on total capital | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | 9.61% | 11.35% | 13.48% | 15.95% | 15.13% |
| Return on equity (ROE) | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
Transdigm Group Incorporated's profitability ratios have shown an improving trend over the recent quarters. The operating return on assets (Operating ROA) has consistently increased from 6.97% in March 2021 to 15.78% in June 2024, indicating the company's ability to generate profit from its assets through operations has strengthened.
Similarly, the return on assets (ROA) has also trended upwards, rising from 1.23% in March 2021 to 7.61% in June 2024. This ratio signifies the company's efficiency in generating profit from its total assets, showing a steady improvement in asset utilization over time.
Return on total capital data is not available for analysis in the provided table. However, it's noteworthy that Return on Equity (ROE) data is missing as well, which limits a comprehensive assessment of the company's profitability from the perspective of shareholder equity.
Overall, the improving trend in Transdigm Group's profitability ratios, particularly in Operating ROA and ROA, reflects positively on the company's operational efficiency and ability to generate returns for its stakeholders. However, the absence of Return on Equity and Return on Total Capital data limits a holistic evaluation of the company's profitability.