Transdigm Group Incorporated (TDG)
Debt-to-capital ratio
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | 19,394,000 | 19,384,000 | 19,410,000 | 17,933,000 | 17,952,000 |
| Total stockholders’ equity | US$ in thousands | -6,290,000 | -2,518,000 | -3,029,000 | -3,513,000 | -1,984,000 | -2,394,000 | -2,901,000 | -3,336,000 | -3,773,000 | -2,976,000 | -2,899,000 | -2,633,000 | -2,916,000 | -3,138,000 | -3,528,000 | -3,728,000 | -3,972,000 | -4,183,000 | -4,209,000 | -4,303,000 |
| Debt-to-capital ratio | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | 1.24 | 1.26 | 1.27 | 1.31 | 1.32 |
September 30, 2024 calculation
Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $—K ÷ ($—K + $-6,290,000K)
= —
The debt-to-capital ratio of Transdigm Group Incorporated has been relatively stable over the past eight quarters, ranging between 1.24 and 1.32. This ratio reflects the proportion of the company's total long-term debt in relation to its total capital, which includes both debt and equity.
A higher debt-to-capital ratio indicates that the company relies more on debt financing to fund its operations and growth, which can increase financial risk. Transdigm Group's ratios above 1 suggest that its long-term debt comprises a significant portion of its total capital structure.
Investors and analysts typically monitor changes in the debt-to-capital ratio to assess the company's financial leverage and risk profile. A consistent or increasing ratio may raise concerns about the company's ability to repay its debt obligations, especially during economic downturns or challenging business conditions.
Transdigm Group's debt-to-capital ratio trends should be considered in conjunction with other financial metrics and qualitative factors to provide a comprehensive evaluation of the company's overall financial health and risk exposure.