TransDigm Group (LTS:0REK) Inventory Turnover : 0.49 (As of Sep. 2024)

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What is TransDigm Group Inventory Turnover?

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 Sep. 2024 was $927 Mil. TransDigm Group's Average Total Inventories for the quarter that ended in Sep. 2024 was $1,877 Mil. TransDigm Group's Inventory Turnover for the quarter that ended in Sep. 2024 was 0.49.

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 Sep. 2024 was 184.76.

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 Sep. 2024 was 0.86.

TransDigm Group Inventory Turnover Historical Data

The historical data trend for TransDigm Group's Inventory Turnover 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.

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TransDigm Group Inventory Turnover Chart

TransDigm Group Annual Data

Trend

Sep15

Sep16

Sep17

Sep18

Sep19

Sep20

Sep21

Sep22

Sep23

Sep24

Inventory Turnover

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1.95

1.85

1.86

1.87

TransDigm Group Quarterly Data
	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23	Mar24	Jun24	Sep24
Inventory Turnover	Get a 7-Day Free Trial															0.47	0.45	0.44	0.45	0.49

TransDigm Group Inventory Turnover Calculation

TransDigm Group's Inventory Turnover for the fiscal year that ended in Sep. 2024 is calculated as

	Inventory Turnover (A: Sep. 2024 )
=	Cost of Goods Sold	/	Average Total Inventories
=	Cost of Goods Sold (A: Sep. 2024 )	/ (	(Total Inventories (A: Sep. 2023 )	+	Total Inventories (A: Sep. 2024 ))	/	count )
=	3268	/ (	(1616	+	1876)	/	2 )
=	3268	/	1746
=	1.87

TransDigm Group's Inventory Turnover for the quarter that ended in Sep. 2024 is calculated as

	Inventory Turnover (Q: Sep. 2024 )
=	Cost of Goods Sold	/	Average Total Inventories
=	Cost of Goods Sold (Q: Sep. 2024 )	/ (	(Total Inventories (Q: Jun. 2024 )	+	Total Inventories (Q: Sep. 2024 ))	/	count )
=	927	/ (	(1878	+	1876)	/	2 )
=	927	/	1877
=	0.49

TransDigm Group (LTS:0REK) 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 Sep. 2024 is calculated as:

Days Inventory	=	Average Total Inventories (Q: Sep. 2024 )	/	Cost of Goods Sold (Q: Sep. 2024 )	*	Days in Period
	=	1877	/	927	*	365 / 4
	=	184.76

2. 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 Sep. 2024 is calculated as

Inventory-to-Revenue	=	Average Total Inventories (Q: Sep. 2024 )	/	Revenue (Q: Sep. 2024 )
	=	1877	/	2186
	=	0.86

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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TransDigm Group Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Industrials » Aerospace & Defense » TransDigm Group Inc (LTS:0REK) » Definitions » Inventory Turnover

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Address

1350 Euclid Avenue, Suite 1600, Cleveland, OH, USA, 44115

Website

https://www.transdigm.com

TransDigm manufactures and services a diverse 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.

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