Transdigm Group Incorporated (TDG)
Return on total capital
| Sep 30, 2024 | Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 3,531,000 | 2,923,000 | 2,215,000 | 1,691,000 | 1,751,000 |
| Long-term debt | US$ in thousands | — | — | — | — | 19,384,000 |
| Total stockholders’ equity | US$ in thousands | -6,290,000 | -1,984,000 | -3,773,000 | -2,916,000 | -3,972,000 |
| Return on total capital | — | — | — | — | 11.36% |
September 30, 2024 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $3,531,000K ÷ ($—K + $-6,290,000K)
= —
Return on total capital (ROTC) is an important financial metric that indicates how efficiently a company is generating profits from its capital investments. In the case of Transdigm Group Incorporated, the ROTC data for the last five years shows that the company achieved an impressive ROTC of 11.36% as of September 30, 2020.
However, it's important to note that no ROTC data is provided for the subsequent years. Without this information, it is difficult to assess the trend in Transdigm's ROTC over the years, which is crucial for understanding the company's performance and efficiency in capital utilization.
If additional data were available, a trend analysis could have been conducted to see if the ROTC has been improving, declining, or remaining stable over time. This would provide valuable insights into Transdigm's ability to generate returns on its total capital investments and would be essential for investors and stakeholders in evaluating the company's financial performance.
In conclusion, while the reported ROTC of 11.36% in 2020 reflects a historically strong performance in capital efficiency for Transdigm Group Incorporated, further information is needed to assess the overall trend and sustainability of the company's returns on total capital.