Transdigm Group Incorporated (TDG)
Solvency ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 1.05 | 1.05 | 1.07 | 1.08 | 0.99 |
| Debt-to-capital ratio | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | 1.24 | 1.26 | 1.27 | 1.31 | 1.32 |
| Debt-to-equity ratio | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Financial leverage ratio | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
Transdigm Group Incorporated has consistently maintained a debt-to-assets ratio of 0.00 over the past few quarters, indicating that the company has not utilized debt financing to fund its assets during this period. The debt-to-capital ratio has ranged between 1.24 and 1.32, showing a moderate level of debt relative to the company's total capital structure. However, the lack of data for the debt-to-equity ratio and financial leverage ratio limits a comprehensive assessment of the company's solvency using these particular metrics. Overall, Transdigm Group's solvency appears to be stable with a low debt level relative to assets and moderate debt relative to its total capital.
Coverage ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Interest coverage | 2.75 | 2.79 | 2.72 | 2.65 | 2.51 | 2.36 | 2.24 | 2.14 | 2.06 | 1.99 | 1.86 | 1.73 | 1.60 | 1.84 | 2.43 | 5.57 | 437.50 | 8.26 | 4.48 | 3.00 |
The interest coverage ratio for Transdigm Group Incorporated has shown fluctuations over the past several quarters. The ratio measures the company's ability to cover its interest expenses with its operating income.
From December 2019 to September 2020, Transdigm's interest coverage ratio was relatively stable, ranging between 3.00 and 8.26, indicating a strong ability to cover interest expenses. However, in the subsequent quarters, the ratio decreased significantly, reaching its lowest level of 1.60 in September 2021.
Subsequently, there was a slight improvement in interest coverage until March 2021, followed by a more significant increase to 2.43 in June 2021. However, from September 2021 to March 2023, the ratio remained below 2.50, indicating a continued challenge in covering interest expenses.
There was a notable improvement in interest coverage in the last three quarters, with the ratio exceeding 2.50. This suggests a better ability to cover interest expenses with operating income compared to the previous quarters.
Overall, while the recent improvement is positive, analysts may continue to monitor Transdigm's interest coverage ratio to assess the company's ongoing ability to meet its interest obligations.