Triumph Group Inc (TGI)

Short-term

Turnover ratios

Triumph Group Inc's inventory turnover ratio has shown a gradual decrease over the past five years, declining from 3.69 in March 2021 to 2.42 in March 2025. This indicates that the company is taking longer to sell its inventory.

On the other hand, the receivables turnover ratio has fluctuated over this period, with a notable increase in March 2025 to 8.35 from 5.69 in March 2021. This suggests that Triumph Group has been able to collect its accounts receivable more efficiently in the most recent year.

In terms of payables turnover, Triumph Group's trend has been a gradual decrease from 8.23 in March 2021 to 5.30 in March 2025. This means that the company is taking longer to pay its suppliers.

Lastly, the working capital turnover ratio has also displayed fluctuations, with a significant increase in March 2022 to 4.04 from 2.24 in March 2021, although the ratio has since decreased to 2.61 in March 2025. This ratio reflects how effectively the company is utilizing its working capital to generate sales.

Overall, the inventory turnover and payables turnover ratios suggest areas where Triumph Group may need to focus on improving operational efficiency, while the receivables turnover and working capital turnover ratios show strengths in accounts receivable collection and working capital management.

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Average number of days

Triumph Group Inc's activity ratios reflect the efficiency of its operations and management of working capital.

1. Days of Inventory on Hand (DOH): The trend in DOH shows an increase from 98.99 days in March 2021 to 150.98 days in March 2025. This suggests that Triumph Group is taking longer to sell its inventory or facing challenges in managing inventory levels efficiently.

2. Days of Sales Outstanding (DSO): The DSO trend indicates fluctuations, with a decrease from 64.17 days in March 2021 to 43.69 days in March 2025. A lower DSO indicates that Triumph Group is collecting its accounts receivable faster, which is a positive sign for cash flow management.

3. Number of Days of Payables: The trend in the number of days of payables shows an increase from 44.37 days in March 2021 to 68.84 days in March 2025. This suggests that Triumph Group is taking longer to pay its suppliers, which can be beneficial for cash flow but may strain supplier relationships.

Overall, Triumph Group's activity ratios reflect a mixed performance in managing its working capital. The company may need to focus on optimizing inventory levels, maintaining efficient accounts receivable collection, and balancing payment terms with suppliers to improve its overall liquidity and operational efficiency.

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Long-term

The fixed asset turnover ratio for Triumph Group Inc has shown a positive trend over the past few years, increasing from 7.25 in March 31, 2021, to 8.64 in March 31, 2022, before slightly declining to 8.27 in March 31, 2023. This indicates that the company is generating more revenue from its fixed assets, such as property, plant, and equipment. However, there is missing data for March 31, 2024 and 2025, which limits the ability to fully assess the trend.

In terms of total asset turnover, Triumph Group Inc's ratio has been somewhat volatile, starting at 0.76 in March 31, 2021, increasing to 0.83 in March 31, 2022, then decreasing to 0.80 in March 31, 2023, further declining to 0.71 in March 31, 2024, and finally recovering slightly to 0.78 in March 31, 2025. This ratio reflects the company's ability to generate sales revenue in relation to its total assets. The fluctuation in the total asset turnover ratio suggests varying efficiencies in asset utilization by the company over the years.

Overall, despite the positive trend in fixed asset turnover, the fluctuating trend in total asset turnover indicates that Triumph Group Inc may need to focus on optimizing the utilization of its total assets to improve its overall operational efficiency and profitability in the long term.