Triumph Group Inc (TGI)

Triumph Group Inc's liquidity ratios have shown varying trends over the years. The current ratio, a measure of the company's ability to cover its short-term obligations with its current assets, increased from 2.16 in March 2021 to 2.64 in March 2024 before slightly decreasing to 2.22 in March 2025. This indicates that Triumph Group's short-term liquidity improved over the period, except for a slight dip in 2025.

The quick ratio, which provides a more stringent assessment of liquidity by excluding inventory from current assets, decreased from 1.28 in March 2021 to 0.87 in March 2022 before steadily increasing to 1.70 in March 2024. However, there was a slight decline to 1.08 in March 2025. Despite the fluctuations, Triumph Group's quick ratio generally improved over the time frame.

The cash ratio, a stringent measure of liquidity as it only considers cash and cash equivalents to cover current liabilities, fluctuated from 0.82 in March 2021 to 1.10 in March 2024, with a notable improvement in liquidity. It then decreased to 0.70 in March 2025. Overall, Triumph Group Inc's cash ratio showed improvement in liquidity, although a slight decline was observed in the most recent period.

In summary, Triumph Group Inc has shown a general improvement in liquidity ratios over the years, with some fluctuations in certain periods. The company appears to have a strong ability to meet its short-term obligations, although monitoring trends in liquidity ratios is essential to assess the company's financial health over time.

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Additional liquidity measure

The cash conversion cycle of Triumph Group Inc has shown fluctuations over the past five years. It increased from 118.78 days as of March 31, 2021, to 158.73 days as of March 31, 2023, indicating a lengthening of the time it takes for the company to convert its investments in raw materials into cash from sales. Subsequently, there was a slight improvement as of March 31, 2024, with the cycle decreasing to 128.21 days, before further decreasing to 125.83 days as of March 31, 2025.

Overall, the trend in the cash conversion cycle suggests that Triumph Group Inc experienced challenges in efficiently managing its working capital during the period under review, leading to an extended time between cash outflows for inventory and cash inflows from sales. However, the recent reduction in the cycle may indicate efforts to improve liquidity and operational efficiency. Monitoring this metric will be essential to assess the company's ability to optimize its cash flow management in the future.