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TransDigm Group Gross Margin %

: 56.69% (As of Mar. 2020)
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Gross Margin % is calculated as gross profit divided by its revenue. TransDigm Group's Gross Profit for the three months ended in Mar. 2020 was USD 818 Mil. TransDigm Group's Revenue for the three months ended in Mar. 2020 was USD 1,443 Mil. Therefore, TransDigm Group's Gross Margin % for the quarter that ended in Mar. 2020 was 56.69%.


NYSE:TDG' s Gross Margin % Range Over the Past 10 Years
Min: 53.43   Med: 54.68   Max: 57.16
Current: 53.94

53.43
57.16

During the past 13 years, the highest Gross Margin % of TransDigm Group was 57.16%. The lowest was 53.43%. And the median was 54.68%.

NYSE:TDG's Gross Margin % is ranked higher than
84% of the 232 Companies
in the Aerospace & Defense industry.

( Industry Median: 25.60 vs. NYSE:TDG: 53.94 )

TransDigm Group had a gross margin of 56.69% for the quarter that ended in Mar. 2020 => Durable competitive advantage

The 5-Year average Growth Rate of Gross Margin for TransDigm Group was 0.80% per year.


TransDigm Group Gross Margin % 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
Gross Margin % Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 53.56 54.49 56.63 57.14 53.78

TransDigm Group Quarterly Data
Jun15 Sep15 Dec15 Mar16 Jun16 Sep16 Dec16 Mar17 Jun17 Sep17 Dec17 Mar18 Jun18 Sep18 Dec18 Mar19 Jun19 Sep19 Dec19 Mar20
Gross Margin % 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 55.65 45.92 59.93 54.68 56.69

Competitive Comparison
* 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.


TransDigm Group Gross Margin % Distribution

* The bar in red indicates where TransDigm Group's Gross Margin % falls into.



TransDigm Group Gross Margin % Calculation

Gross Margin is the percentage of Gross Profit out of sales or Revenue.

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

Gross Margin % (A: Sep. 2019 )=Gross Profit (A: Sep. 2019 ) / Revenue (A: Sep. 2019 )
=2809.3 / 5223.203
=(Revenue - Cost of Goods Sold) / Revenue
=(5223.203 - 2413.9) / 5223.203
=53.79 %

TransDigm Group's Gross Margin for the quarter that ended in Mar. 2020 is calculated as


Gross Margin % (Q: Mar. 2020 )=Gross Profit (Q: Mar. 2020 ) / Revenue (Q: Mar. 2020 )
=818 / 1443
=(Revenue - Cost of Goods Sold) / Revenue
=(1443 - 625) / 1443
=56.69 %

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

A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.


TransDigm Group  (NYSE:TDG) Gross Margin % Explanation

Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.

Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %

1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key

TransDigm Group had a gross margin of 56.69% for the quarter that ended in Mar. 2020 => Durable competitive advantage


Be Aware

If a company loses its competitive advantages, usually its gross margin declines well before its sales declines. Watching Gross Margin % and Operating Margin % closely helps avoid value trap situations.


TransDigm Group Gross Margin % Related Terms


TransDigm Group Gross Margin % Headlines

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