Triumph Group Inc (TGI)
Activity ratios
Short-term
Turnover ratios
| Mar 31, 2025 | Dec 31, 2024 | 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Inventory turnover | — | 2.24 | 2.22 | 2.62 | 3.07 | 2.81 | 2.33 | 2.24 | 2.55 | 2.51 | 2.51 | 2.77 | 2.97 | 2.91 | 3.24 | 3.33 | 3.69 | 3.75 | 4.03 | 4.54 |
| Receivables turnover | — | 5.52 | 4.91 | 5.83 | 6.23 | 6.27 | 5.12 | 5.00 | 4.60 | 4.77 | 4.88 | 5.32 | 5.20 | 4.97 | 5.06 | 5.30 | 5.69 | 6.43 | 5.56 | 5.78 |
| Payables turnover | — | 7.21 | 6.00 | 7.35 | 5.83 | 7.40 | 6.54 | 6.28 | 5.84 | 6.04 | 6.45 | 7.92 | 6.64 | 6.80 | 8.81 | 8.35 | 8.23 | 8.57 | 7.75 | 7.08 |
| Working capital turnover | — | 2.70 | 2.67 | 2.86 | 2.27 | 2.34 | 2.41 | 2.57 | 2.57 | 3.03 | 3.07 | 4.14 | 4.04 | 4.22 | 3.93 | 3.98 | 2.24 | 3.00 | 3.00 | 6.95 |
Triumph Group Inc's inventory turnover has shown a declining trend over the period, from 4.54 in June 2020 to 2.24 in June 2023, indicating that the company is taking longer to sell its inventory. This can point towards potential issues such as obsolete inventory or overstocking.
The receivables turnover ratio has fluctuated during the period, with some improvements seen in between. The ratio was highest at 6.43 in December 2020 but dropped to 4.60 in March 2023. A lower receivables turnover ratio could suggest that Triumph Group is taking longer to collect payments from its customers.
Payables turnover also fluctuated, with a general decreasing trend from 8.57 in December 2020 to 6.00 in September 2024. A declining payables turnover ratio may indicate that Triumph Group is taking longer to pay its suppliers, which could impact supplier relationships or signal financial strain.
The working capital turnover ratio has also shown a downward trend over the years, indicating a decrease in the efficiency of using working capital to generate sales. This ratio dropped from 6.95 in June 2020 to 2.70 in December 2024, suggesting potential inefficiencies in managing working capital.
Overall, the analysis of Triumph Group Inc's activity ratios highlights areas of concern regarding inventory management, collection of receivables, payment to suppliers, and the utilization of working capital. Monitoring these ratios regularly can help the company identify and address operational inefficiencies.
Average number of days
| Mar 31, 2025 | Dec 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | — | 162.60 | 164.66 | 139.06 | 118.91 | 130.11 | 156.47 | 163.27 | 143.28 | 145.39 | 145.66 | 131.85 | 123.03 | 125.45 | 112.69 | 109.46 | 98.99 | 97.33 | 90.49 | 80.46 |
| Days of sales outstanding (DSO) | days | — | 66.11 | 74.36 | 62.56 | 58.57 | 58.24 | 71.34 | 72.98 | 79.35 | 76.60 | 74.79 | 68.60 | 70.13 | 73.38 | 72.18 | 68.89 | 64.17 | 56.77 | 65.61 | 63.12 |
| Number of days of payables | days | — | 50.60 | 60.86 | 49.69 | 62.64 | 49.34 | 55.82 | 58.14 | 62.53 | 60.45 | 56.57 | 46.06 | 54.95 | 53.70 | 41.43 | 43.70 | 44.37 | 42.60 | 47.11 | 51.55 |
Triumph Group Inc's Days of Inventory on Hand (DOH) has shown a fluctuating trend over the years, starting at 80.46 days on June 30, 2020, peaking at 164.66 days on September 30, 2024, and then decreasing to 162.60 days on December 31, 2024. This metric indicates the number of days a company takes to sell its inventory, suggesting that the company may be facing challenges in efficiently managing its inventory levels.
Days of Sales Outstanding (DSO) has also varied, with a low of 56.77 days on December 31, 2020, and a high of 79.35 days on March 31, 2023. DSO reflects the average number of days it takes for a company to collect revenue after a sale, indicating how well Triumph Group Inc manages its accounts receivable. The fluctuations in this ratio suggest potential challenges in timely collection of receivables.
The Number of Days of Payables, on the other hand, has exhibited a more stable trend, ranging from 41.43 days on September 30, 2021, to 62.64 days on March 31, 2024. This ratio represents the average number of days a company takes to pay its suppliers, highlighting Triumph Group Inc's payment practices. The consistency seen in this ratio implies a relatively stable approach to managing payables.
Overall, considering the activity ratios, Triumph Group Inc may need to focus on improving its inventory management to reduce holding costs and optimize cash flows. Additionally, enhancing accounts receivable collection processes could help in improving cash inflows and overall working capital management.
Long-term
| Mar 31, 2025 | Dec 31, 2024 | 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Fixed asset turnover | — | — | — | — | — | — | 8.42 | 8.06 | 8.27 | 8.46 | 8.47 | 8.53 | 8.64 | 8.62 | 9.20 | 8.64 | 7.25 | 5.89 | 6.58 | 7.19 |
| Total asset turnover | — | 0.82 | 0.80 | 0.86 | 0.77 | 0.81 | 0.84 | 0.82 | 0.80 | 0.86 | 0.87 | 0.85 | 0.83 | 0.88 | 0.91 | 0.94 | 0.76 | 0.87 | 0.94 | 1.18 |
Based on the provided data, we observe the following trends in Triumph Group Inc's long-term activity ratios:
1. Fixed Asset Turnover:
- The fixed asset turnover ratio measures how efficiently the company is utilizing its fixed assets to generate sales. A higher ratio indicates better efficiency.
- Over the period from June 2020 to September 2023, Triumph Group Inc's fixed asset turnover ratio generally increased from 7.19 to 8.42. This suggests an improvement in the company's ability to generate sales relative to its investment in fixed assets.
- However, there was a slight decrease in the fixed asset turnover ratio in the most recent period, from 8.42 in September 2023 to 8.06 in June 2024. This dip may indicate a temporary decrease in asset efficiency or changes in the company's operations.
- It is important to monitor this ratio in future periods to understand whether this decline is a short-term fluctuation or a longer-term trend.
2. Total Asset Turnover:
- The total asset turnover ratio measures how efficiently the company is using all its assets to generate revenue. A declining ratio may suggest inefficiencies in asset utilization.
- Triumph Group Inc's total asset turnover ratio fluctuated between 0.76 and 0.94 from March 2021 to June 2023, before stabilizing around 0.80 to 0.86 in subsequent periods.
- The recent trend in the total asset turnover ratio indicates that Triumph Group Inc's efficiency in generating revenue relative to its total asset base has remained relatively stable.
- Further monitoring will be necessary to assess any significant changes in asset efficiency that could impact the company's overall performance.
In conclusion, Triumph Group Inc has shown improvements in fixed asset turnover efficiency over the analyzed period, while maintaining a stable total asset turnover ratio. Monitoring these ratios can provide insights into the company's operational efficiency and asset utilization strategies in the long term.