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TDG (TransDigm Group) Cash Conversion Cycle : 230.06 (As of Mar. 2025)


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What is TransDigm Group Cash Conversion Cycle?

Cash Conversion Cycle is one of several measures of management effectiveness. It equals Days Sales Outstanding + Days Inventory - Days Payable.

TransDigm Group's Days Sales Outstanding for the three months ended in Mar. 2025 was 57.87.
TransDigm Group's Days Inventory for the three months ended in Mar. 2025 was 205.21.
TransDigm Group's Days Payable for the three months ended in Mar. 2025 was 33.02.
Therefore, TransDigm Group's Cash Conversion Cycle (CCC) for the three months ended in Mar. 2025 was 230.06.


TransDigm Group Cash Conversion Cycle Historical Data

The historical data trend for TransDigm Group's Cash Conversion Cycle can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

TransDigm Group Cash Conversion Cycle Chart

TransDigm Group Annual Data
Trend Sep15 Sep16 Sep17 Sep18 Sep19 Sep20 Sep21 Sep22 Sep23 Sep24
Cash Conversion Cycle
Get a 7-Day Free Trial Premium Member Only Premium Member Only 214.19 219.05 216.62 218.17 219.95

TransDigm Group Quarterly Data
Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24 Mar25
Cash Conversion Cycle Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 226.56 221.97 209.07 248.12 230.06

Competitive Comparison of TransDigm Group's Cash Conversion Cycle

For the Aerospace & Defense subindustry, TransDigm Group's Cash Conversion Cycle, along with its competitors' market caps and Cash Conversion Cycle data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


TransDigm Group's Cash Conversion Cycle Distribution in the Aerospace & Defense Industry

For the Aerospace & Defense industry and Industrials sector, TransDigm Group's Cash Conversion Cycle distribution charts can be found below:

* The bar in red indicates where TransDigm Group's Cash Conversion Cycle falls into.


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TransDigm Group Cash Conversion Cycle Calculation

Cash Conversion Cycle (CCC) measures how fast a company can convert cash on hand into even more cash on hand. This metric looks at the amount of time needed to sell inventory, the amount of time needed to collect receivables and the length of time the company is afforded to pay its bills without incurring penalties.

Cash Conversion Cycle is one of several measures of management effectiveness.

TransDigm Group's Cash Conversion Cycle for the fiscal year that ended in Sep. 2024 is calculated as

Cash Conversion Cycle=Days Sales Outstanding +Days Inventory-Days Payable
=60.01+195.01-35.07
=219.95

TransDigm Group's Cash Conversion Cycle for the quarter that ended in Mar. 2025 is calculated as:

Cash Conversion Cycle=Days Sales Outstanding+Days Inventory-Days Payable
=57.87+205.21-33.02
=230.06

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.


TransDigm Group  (NYSE:TDG) Cash Conversion Cycle Explanation

Generally, the lower this number is, the better for the company. Although it should be combined with other metrics (such as ROE % and ROA %), it can be especially useful for comparing close competitors, because the company with the lowest CCC is often the one with better management.


Be Aware

CCC is most effective with retail-type companies, which have inventories that are sold to customers. Consulting businesses, software companies and insurance companies are all examples of companies for whom this metric is meaningless.

The CCC is one of several tools that can help you evaluate management, especially if it is calculated for several consecutive time periods and for several competitors. Decreasing or steady CCCs are good, while rising ones should motivate you to dig a bit deeper.


TransDigm Group Cash Conversion Cycle Related Terms

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TransDigm Group Business Description

Traded in Other Exchanges
Address
1350 Euclid Avenue, Suite 1600, Cleveland, OH, USA, 44115
TransDigm manufactures and services a broad set of specialized parts for commercial and military aircraft. The firm organizes itself in three segments: power and control, airframes, and a small non-aviation segment, which serves mostly off-road vehicles and mining equipment. It operates as an acquisitive holding company that focuses its portfolio on firms that make proprietary aerospace products with substantial aftermarket demand. TransDigm regularly employs financial leverage to amplify its operating results.
Executives
Joel Reiss officer: Executive Vice President 1301 E. 9TH STREET, SUITE 3000, CLEVELAND OH 44114
Sean P Hennessy director C/O THE SHERWIN WILLIAMS CO, 101 PROSPECT AVE NW, CLEVELAND OH 44115
W Nicholas Howley officer: Chief Executive Officer C/O TRANSDIGM INC., 1301 EAST NINTH STREET, SUITE 3710, CLEVELAND OH 44114
Jorge Valladares officer: Pres., Adel Wiggins Group ADELWIGGINS GROUP, 5000 TRIGGS STREET, LOS ANGELES CA 90022
Jessica L Warren officer: GC, CCO, Secretary 1301 EAST NINTH STREET, SUITE 3000, CLEVELAND OH 44114
Kevin M Stein officer: COO - Power TRANSDIGM GROUP INCORPORATED, 1301 EAST 9TH STREET, SUITE 3000, CLEVELAND OH 44114
Robert J Small director
Michael Lisman officer: Chief Financial Officer 1301 EAST 9TH STREET, SUITE 3000, CLEVELAND OH 44114
Sarah Wynne officer: Corporate Accounting Officer 1301 EAST 9TH STREET, SUITE 3000, CLEVELAND OH 44114
Michael Graff director C/O WARBURG PINCUS LLC, 450 LEXINGTON AVENUE, NEW YORK NY 10017
Michele Santana director CLARENDON HOUSE, 2 CHURCH STREET, HAMILTON D0 HM1
Mervin Dunn director COMMERCIAL VEHICLE GROUP, INC., 6530 WEST CAMPUS WAY, NEW ALBANY OH 43054
John Staer director C.F.MOLLERS ALLE 16, 8TV, 2300 COPENHAGEN S G7 DK
Jane M. Cronin director 101 W. PROSPECT AVENUE, CLEVELAND OH 44115
Raymond F Laubenthal officer: President and COO TRANSDIGM GROUP INCORPORATED, 1301 EAST 9TH STREET, SUITE 3710, CLEVELAND OH 44114