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TransDigm Group Inventory Turnover

: 0.40 (As of Jun. 2020)
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Inventory Turnover measures how fast the company turns over its inventory within a year. It is calculated as Cost of Goods Sold divided by Total Inventories. TransDigm Group's Cost of Goods Sold for the three months ended in Jun. 2020 was $531 Mil. TransDigm Group's Total Inventories for the quarter that ended in Jun. 2020 was $1,329 Mil. TransDigm Group's Inventory Turnover for the quarter that ended in Jun. 2020 was 0.40.

Days Inventory indicates the number of days of goods in sales that a company has in the inventory. TransDigm Group's Days Inventory for the three months ended in Jun. 2020 was 228.30.

Total Inventories can be measured by Days Sales of Inventory (DSI). TransDigm Group's days sales of inventory (DSI) for the three months ended in Jun. 2020 was 118.62.

Inventory-to-Revenue determines the ability of a company to manage their inventory levels. It measures the percentage of Inventories the company currently has on hand to support the current amount of Revenue. TransDigm Group's Inventory-to-Revenue for the quarter that ended in Jun. 2020 was 1.30.

TransDigm Group Inventory Turnover Historical Data

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.

* Premium members only.

TransDigm Group Annual Data
Sep10 Sep11 Sep12 Sep13 Sep14 Sep15 Sep16 Sep17 Sep18 Sep19
Inventory Turnover Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 2.39 2.19 2.09 2.13 2.37

TransDigm Group Quarterly Data
Sep15 Dec15 Mar16 Jun16 Sep16 Dec16 Mar17 Jun17 Sep17 Dec17 Mar18 Jun18 Sep18 Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20
Inventory Turnover 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 Premium Member Only Premium Member Only Premium Member Only 0.56 0.50 0.53 0.48 0.40

TransDigm Group Inventory Turnover Calculation

TransDigm Group's Inventory Turnover for the fiscal year that ended in Sep. 2019 is calculated as

Inventory Turnover (A: Sep. 2019 )
=Cost of Goods Sold / Total Inventories
=Cost of Goods Sold (A: Sep. 2019 ) / ((Total Inventories (A: Sep. 2018 ) + Total Inventories (A: Sep. 2019 )) / count )
=2413.9 / ((805.292 + 1232.649) / 2 )
=2413.9 / 1018.9705
=2.37

TransDigm Group's Inventory Turnover for the quarter that ended in Jun. 2020 is calculated as

Inventory Turnover (Q: Jun. 2020 )
=Cost of Goods Sold / Total Inventories
=Cost of Goods Sold (Q: Jun. 2020 ) / ((Total Inventories (Q: Mar. 2020 ) + Total Inventories (Q: Jun. 2020 )) / count )
=531 / ((1313 + 1344) / 2 )
=531 / 1328.5
=0.40

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.

TransDigm Group  (NYSE:TDG) Inventory Turnover Explanation

Inventory Turnover measures how fast the company turns over its inventory within a year. A higher Inventory Turnover means the company has light inventory. Therefore the company spends less money on storage, write downs, and obsolete inventory. If the inventory is too light, it may affect sales because the company may not have enough to meet demand.

1. Days Inventory indicates the number of days of goods in sales that a company has in the inventory.

TransDigm Group's Days Inventory for the three months ended in Jun. 2020 is calculated as:

Days Inventory =Total Inventories (Q: Jun. 2020 )/Cost of Goods Sold (Q: Jun. 2020 )*Days in Period
=1328.5/531*365 / 4
=228.30

2. Total Inventories can be measured by Days Sales of Inventory (DSI).

TransDigm Group's Days Sales of Inventory for the three months ended in Jun. 2020 is calculated as:

Days Sales of Inventory (DSI)=Total Inventories (Q: Jun. 2020 )/Revenue (Q: Jun. 2020 )*Days in Period
=1328.5/1022*365 / 4
=118.62

3. Inventory-to-Revenue determines the ability of a company to manage their inventory levels. It measures the percentage of Inventories the company currently has on hand to support the current amount of Revenue.

TransDigm Group's Inventory to Revenue for the quarter that ended in Jun. 2020 is calculated as

Inventory-to-Revenue=Total Inventories (Q: Jun. 2020 ) / Revenue (Q: Jun. 2020 )
=1328.5 / 1022
=1.30

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.

Be Aware

Usually retailers pile up their inventories at holiday seasons to meet the stronger demand. Therefore, the inventory of a particular quarter of a year should not be used to calculate Inventory Turnover. An average inventory is a better indication.

TransDigm Group Inventory Turnover Related Terms

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