Transdigm Group Incorporated (TDG)
Debt-to-assets ratio
| Sep 30, 2024 | Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | ||
|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | — | — | — | — | 19,384,000 |
| Total assets | US$ in thousands | 25,586,000 | 19,970,000 | 18,107,000 | 19,315,000 | 18,395,000 |
| Debt-to-assets ratio | 0.00 | 0.00 | 0.00 | 0.00 | 1.05 |
September 30, 2024 calculation
Debt-to-assets ratio = Long-term debt ÷ Total assets
= $—K ÷ $25,586,000K
= 0.00
The debt-to-assets ratio for Transdigm Group Incorporated has shown consistent improvement over the past five years. As of September 30, 2020, the company had a debt-to-assets ratio of 1.05, indicating that the company's total debt constituted 105% of its total assets. However, in the subsequent years (2021 to 2024), the company's debt-to-assets ratio has decreased to 0.00, suggesting that the company either reduced its debt levels or increased its asset base, or a combination of both.
A debt-to-assets ratio of 0.00 signifies that the company has no debt relative to its total assets, which is generally considered a favorable sign as it demonstrates a lower financial risk and potentially stronger financial position. This improvement in the debt-to-assets ratio could indicate that Transdigm Group Incorporated has effectively managed its debt levels and potentially strengthened its balance sheet. It also reflects the company's ability to either pay off its debt obligations or invest in assets that can generate greater returns.
Overall, the decreasing trend in the debt-to-assets ratio for Transdigm Group Incorporated suggests a positive financial trajectory, showcasing improved financial health and prudent debt management practices over the specified period.