Transdigm Group Incorporated (TDG)
Return on assets (ROA)
| Sep 30, 2024 | Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 1,714,000 | 1,298,000 | 866,000 | 680,000 | 699,000 |
| Total assets | US$ in thousands | 25,586,000 | 19,970,000 | 18,107,000 | 19,315,000 | 18,395,000 |
| ROA | 6.70% | 6.50% | 4.78% | 3.52% | 3.80% |
September 30, 2024 calculation
ROA = Net income ÷ Total assets
= $1,714,000K ÷ $25,586,000K
= 6.70%
Transdigm Group Incorporated's return on assets (ROA) has exhibited a positive trend over the past five years, increasing from 3.80% in 2020 to 6.70% in 2024. This indicates that the company has become more efficient in generating profits from its assets. The steady improvement in ROA reflects Transdigm's ability to effectively utilize its assets to generate earnings. The consistent growth in ROA suggests that the company has been successful in managing its asset base to maximize profitability. Overall, the increasing trend in ROA indicates that Transdigm Group has been successful in making effective use of its assets to generate returns for its shareholders.