Triumph Group Inc (TGI)
Activity ratios
Short-term
Turnover ratios
| 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 | Sep 30, 2019 | Jun 30, 2019 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Inventory turnover | 3.05 | 2.81 | 2.22 | 2.12 | 3.05 | 2.39 | 2.51 | 2.77 | 2.97 | 2.91 | 3.24 | 3.33 | 3.69 | 3.75 | 4.03 | 4.54 | 5.09 | 5.25 | 5.89 | 5.96 |
| Receivables turnover | 8.62 | 9.09 | 6.89 | 7.30 | 7.97 | 7.28 | 7.69 | 8.40 | 8.17 | 9.69 | 9.40 | 9.31 | 9.63 | 12.50 | 10.16 | 10.38 | 8.07 | 10.23 | 9.29 | 9.84 |
| Payables turnover | 5.78 | 7.40 | 6.22 | 5.95 | 5.42 | 5.74 | 6.45 | 7.92 | 6.64 | 6.80 | 8.81 | 8.35 | 8.23 | 8.57 | 7.75 | 7.08 | 5.04 | 6.55 | 6.40 | 6.57 |
| Working capital turnover | 2.04 | 2.00 | 1.95 | 2.24 | 2.32 | 2.88 | 3.07 | 4.14 | 4.05 | 4.22 | 3.93 | 3.98 | 2.24 | 3.00 | 3.00 | 6.95 | 5.05 | 14.45 | 14.61 | 15.66 |
The inventory turnover ratio measures how efficiently Triumph Group Inc is managing its inventory by indicating how many times the company's inventory is sold and replaced within a given period. Over the observed periods, Triumph Group's inventory turnover ratio has varied between 2.12 and 5.96, with an overall increasing trend. This suggests that the company has been able to improve its inventory management efficiency over time.
The receivables turnover ratio reflects how well Triumph Group is collecting on its credit sales. The fluctuation in this ratio throughout the periods indicates some variability in the company's collection practices. Overall, the receivables turnover ratio has ranged from 6.89 to 12.50, with a general trend of improvement, suggesting effective management of accounts receivable.
The payables turnover ratio assesses how efficiently Triumph Group is managing its payments to suppliers. The ratio has varied between 5.04 and 8.81, reflecting changes in the company's payment practices. A decreasing trend in payables turnover may indicate that the company is taking longer to pay its suppliers, which could have strategic implications.
The working capital turnover ratio measures how well Triumph Group is utilizing its working capital to generate sales. The ratio has fluctuated considerably, ranging from 1.95 to 15.66. A higher working capital turnover ratio indicates that the company is effectively using its working capital to drive sales, which can be interpreted as a positive sign of operational efficiency.
In conclusion, Triumph Group Inc's activity ratios show varying levels of efficiency in managing its inventory, receivables, payables, and working capital over the observed periods. Overall, the trends suggest improvements in inventory management and accounts receivable, while payables management and working capital utilization have shown some fluctuations.
Average number of days
| 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 | Sep 30, 2019 | Jun 30, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 119.84 | 130.11 | 164.63 | 172.27 | 119.84 | 153.03 | 145.66 | 131.85 | 123.03 | 125.45 | 112.69 | 109.46 | 98.99 | 97.33 | 90.49 | 80.46 | 71.65 | 69.50 | 61.93 | 61.25 |
| Days of sales outstanding (DSO) | days | 42.34 | 40.15 | 53.01 | 49.98 | 45.80 | 50.16 | 47.48 | 43.43 | 44.67 | 37.65 | 38.84 | 39.19 | 37.88 | 29.20 | 35.94 | 35.18 | 45.24 | 35.68 | 39.30 | 37.09 |
| Number of days of payables | days | 63.13 | 49.34 | 58.73 | 61.35 | 67.30 | 63.62 | 56.57 | 46.06 | 54.95 | 53.70 | 41.43 | 43.70 | 44.37 | 42.60 | 47.11 | 51.55 | 72.40 | 55.73 | 57.06 | 55.54 |
The Days of Inventory on Hand (DOH) for Triumph Group Inc have shown some fluctuations over the past few quarters. In the most recent quarter ending March 31, 2024, the company had 119.84 days of inventory on hand, which is lower compared to the previous quarter, indicating more efficient inventory management. However, a longer DOH figure could potentially tie up working capital in inventory, impacting the company's liquidity.
The Days of Sales Outstanding (DSO) measure indicates the average number of days it takes for Triumph Group Inc to collect revenue after a sale is made. The DSO has also varied over the quarters, with the latest figure for March 31, 2024, at 42.34 days, showing an increase from the prior quarter. This increase may suggest potential challenges in collecting receivables promptly and efficiently.
The Number of Days of Payables is a reflection of how long Triumph Group Inc takes to pay its suppliers. The trend in this ratio has been inconsistent, with fluctuations in recent quarters. As of March 31, 2024, the company had 63.13 days of payables, indicating an increase from the prior quarter. A longer payment period can sometimes indicate a strain on supplier relationships or potential cash flow management strategies.
Overall, the activity ratios of Triumph Group Inc demonstrate varying levels of efficiency in managing inventory, collecting receivables, and paying suppliers. It is essential for the company to monitor and optimize these ratios to maintain a healthy working capital position and enhance overall operational performance.
Long-term
| 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 | Sep 30, 2019 | Jun 30, 2019 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Fixed asset turnover | 8.26 | 8.19 | 6.82 | 6.88 | 8.97 | 8.04 | 8.47 | 8.53 | 8.64 | 8.62 | 9.20 | 8.64 | 8.85 | 5.89 | 6.58 | 7.19 | 6.94 | 7.10 | 6.32 | 6.33 |
| Total asset turnover | 0.71 | 0.69 | 0.68 | 0.70 | 0.73 | 0.82 | 0.87 | 0.85 | 0.83 | 0.88 | 0.91 | 0.94 | 0.76 | 0.87 | 0.94 | 1.18 | 0.97 | 1.17 | 1.15 | 1.16 |
Triumph Group Inc's long-term activity ratios show the efficiency of the company in utilizing its fixed assets and total assets to generate revenue. The fixed asset turnover ratio has been relatively stable over the periods, averaging around 8, indicating that the company generates approximately $8 in sales for every $1 invested in fixed assets. This suggests efficient utilization of fixed assets in revenue generation.
On the other hand, the total asset turnover ratio has shown more variability over the same periods, ranging from 0.68 to 1.18. The ratio indicates how efficiently the company is using all its assets to generate revenue, with a higher ratio implying better asset utilization. Triumph Group Inc's total asset turnover ratio has fluctuated, suggesting varying levels of efficiency in utilizing total assets to generate revenue.
Overall, while the fixed asset turnover ratio indicates consistent efficiency in utilizing fixed assets, the total asset turnover ratio shows fluctuations in the company's overall asset utilization efficiency over the periods analyzed. Further analysis would be needed to understand the reasons behind the fluctuations and to identify any potential areas for improvement in asset utilization efficiency.