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TransDigm Group's Days Sales Outstanding for the
three
months ended in Mar. 2026 was 58.9.
TransDigm Group's Days Inventory for the
three
months ended in Mar. 2026 was 210.81.
TransDigm Group's Days Payable for the
three
months ended in Mar. 2026 was 35.78.
Therefore, TransDigm Group's Cash Conversion Cycle (CCC) for the
three
months ended in Mar. 2026 was 233.93.
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
TransDigm Group Cash Conversion Cycle Historical Data
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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.
TDG vs HONA, NOC, LHX: Cash Conversion Cycle Comparison
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 Cash Conversion Cycle vs 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.
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. 2025 is calculated as
* 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 (TDG) has a Cash Conversion Cycle of 233.93 as of Mar. 2026. Cash conversion cycle equals sum of days inventory and days sales outstanding less days payable. View historical data on TransDigm Group and its competitors.
Is TransDigm Group's Cash Conversion Cycle too high?
TransDigm Group's current Cash Conversion Cycle is 233.93. The Aerospace & Defense industry median Cash Conversion Cycle is 135.42. TransDigm Group's value of 233.93 is 72.7% above this industry median. Overall, TransDigm Group has a GF Score™ of 89/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does TransDigm Group's Cash Conversion Cycle compare to HONA and NOC?
TransDigm Group's Cash Conversion Cycle of 233.93 can be compared against companies in the Aerospace & Defense industry. The industry median Cash Conversion Cycle is 135.42. TransDigm Group's value of 233.93 is 72.7% above this benchmark. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Cash Conversion Cycle for an Aerospace & Defense company?
The median Cash Conversion Cycle among Aerospace & Defense companies is 135.42, based on 351 companies in the industry. Companies in the top quartile (top 25%) have a Cash Conversion Cycle significantly above this median, while those in the bottom quartile fall well below. However, Cash Conversion Cycle should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. TransDigm Group's current Cash Conversion Cycle of 233.93 is 72.7% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Cash Conversion Cycle mean?
A high Cash Conversion Cycle can signal that a stock is expensive relative to its fundamentals. Cash conversion cycle equals sum of days inventory and days sales outstanding less days payable. View historical data on TransDigm Group and its competitors. For the Aerospace & Defense industry, the median Cash Conversion Cycle is 135.42 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. TransDigm Group's current Cash Conversion Cycle is 233.93. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is TransDigm Group stock overvalued right now?
Based on GuruFocus' analysis, TransDigm Group (TDG) is currently considered Modestly Undervalued. The stock's GF Value™ is $1,610.96, compared to a current price of $1,254.38 — trading 22.1% below its estimated fair value. The current Cash Conversion Cycle is 233.93 and 72.7% above the Aerospace & Defense industry median of 135.42. TransDigm Group's overall GF Score™ is 89/100 with 5 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Cash Conversion Cycle calculated?
Cash Conversion Cycle is calculated from a company's financial statements. For TransDigm Group (TDG), the current Cash Conversion Cycle is 233.93 as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is TransDigm Group (TDG) Overvalued in 2026?
Based on GuruFocus' analysis, TransDigm Group stock appears to be undervalued.
The current stock price of $1,254.38 is trading 22.1% below its estimated GF Value™ of $1,610.96.
GuruFocus considers TransDigm Group to be Modestly Undervalued.
Key valuation signals for TDG:
Cash Conversion Cycle: 233.93
GF Value™: $1,610.96 vs. price of $1,254.38 (22.1% below fair value)
Industry Position: 72.7% above the Aerospace & Defense median
No single metric tells the full story. See the TDG stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
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 on buying up smaller firms that make proprietary aerospace products with substantial aftermarket demand. TransDigm regularly employs financial leverage to amplify its operating results.
89GF Score
Get the complete analysis for TDG
Cash Conversion Cycle is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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