Triumph Group Inc (TGI)
Liquidity 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Current ratio | — | 2.50 | 2.47 | 2.47 | 2.64 | 2.66 | 2.85 | 2.53 | 2.35 | 2.22 | 2.25 | 1.63 | 1.60 | 1.65 | 1.76 | 1.79 | 2.16 | 2.09 | 2.17 | 1.49 |
| Quick ratio | — | 1.17 | 1.14 | 1.23 | 1.70 | 1.09 | 1.41 | 1.21 | 1.33 | 1.09 | 1.08 | 0.74 | 0.87 | 0.92 | 0.95 | 1.02 | 1.28 | 1.26 | 1.29 | 0.62 |
| Cash ratio | — | 0.44 | 0.34 | 0.50 | 1.10 | 0.47 | 0.54 | 0.42 | 0.57 | 0.31 | 0.29 | 0.25 | 0.40 | 0.37 | 0.35 | 0.42 | 0.82 | 0.75 | 0.65 | 0.04 |
Triumph Group Inc's liquidity ratios have shown fluctuations over the years.
The current ratio, which measures the company's ability to cover its short-term liabilities with its current assets, has generally been within a healthy range. It increased steadily from June 2020 to March 2023, indicating an improving ability to meet short-term obligations. However, it slightly declined in the most recent period from March 2023 to June 2024, possibly indicating a need for closer monitoring of liquidity management.
The quick ratio, a more stringent measure of liquidity that excludes inventory from current assets, also followed a similar trend as the current ratio. It generally improved over the period, which is positive as it shows the company's ability to cover short-term obligations with more liquid assets.
The cash ratio, which is the most conservative liquidity ratio as it only includes cash and cash equivalents, also showed a mix of fluctuations. It started low in June 2020 but gradually increased until March 2024, signifying an enhanced ability to cover short-term obligations with cash on hand. The spike in the cash ratio in March 2024 might suggest a temporary increase in liquidity, possibly due to specific events like asset sales or capital injections.
Overall, while Triumph Group Inc's liquidity ratios have displayed some variability, the company has generally maintained a strong liquidity position over the years, with improvements in its ability to cover short-term obligations with current and liquid assets. However, ongoing monitoring and management of liquidity levels will be essential to ensure the company can meet its financial commitments effectively.
Additional liquidity measure
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash conversion cycle | days | 0.00 | 178.12 | 178.16 | 151.93 | 114.83 | 139.01 | 171.99 | 178.11 | 160.09 | 161.54 | 163.88 | 154.38 | 138.21 | 145.12 | 143.45 | 134.64 | 118.78 | 111.50 | 109.00 | 92.03 |
The cash conversion cycle is an important financial metric that measures how long it takes for a company to convert its investments in inventory and other resources into cash flows from sales. A shorter cash conversion cycle is typically seen as more favorable as it indicates that the company is efficiently managing its working capital.
Analyzing the cash conversion cycle data for Triumph Group Inc from June 30, 2020, to March 31, 2025, we observe fluctuations in the cycle over time. The cycle started at 92.03 days on June 30, 2020, and increased steadily, reaching a peak of 178.16 days on September 30, 2024. This increase indicates potential inefficiencies in the company's management of working capital during that period.
However, there was a significant improvement in the cash conversion cycle from September 30, 2024, to March 31, 2025, with the cycle dropping to 0.00 days. A cash conversion cycle of 0.00 days could indicate that Triumph Group Inc has effectively streamlined its operations to the extent that it is able to generate cash from sales almost immediately.
Overall, the trend of the cash conversion cycle for Triumph Group Inc shows variability over the years, with periods of inefficiency followed by improvements. It is important for the company to consistently monitor and manage its working capital to maintain a sustainable and efficient cash conversion cycle.