Focused on building reliable datasets, financial models, and research tools for value-minded investors. Committed to turning complex data into practical guidance for value-investing and long-term wealth.
Dr. Charlie Tian is the founder and CEO of GuruFocus.com, a leading global investment research platform established in 2004. With a Ph.D. in physics, Dr. Tian transitioned from science to finance, applying a data-driven, disciplined approach to value investing.
TransDigm GroupLTS:0REK +1.37%86 Quick Ratio is 2.53 as of Mar. 2026, which is 13% below its 10-year median of 2.91. GuruFocus rates LTS:0REK with a GF Score™ of 86/100 and a GF Value™ of $1,620.59 (Modestly Undervalued). The stock has 5 warning signs investors should review. Among 361 Aerospace & Defense companies, TransDigm Group ranks better than 77.29% on this metric.
The quick ratio measures a company's ability to meet its short-term obligations with its most liquid assets. It is calculated as a company's Total Current Assets excludes Total Inventories divides by its Total Current Liabilities. TransDigm Group's quick ratio for the quarter that ended in Mar. 2026 was 2.53.
TransDigm Group has a quick ratio of 2.53. It generally indicates good short-term financial strength.
The historical rank and industry rank for TransDigm Group's Quick Ratio or its related term are showing as below:
LTS:0REK'
s Quick Ratio Range Over the Past 10 Years
Min: 1.29 Med: 2.91 Max: 4.18
Current: 2.53
During the past 13 years, TransDigm Group's highest Quick Ratio was 4.18. The lowest was 1.29. And the median was 2.91.
LTS:0REK's Quick Ratio is ranked better than 77.29% of 361
companies
in the Aerospace & Defense industry
Industry Median: 1.3
vs LTS:0REK: 2.53
TransDigm Group (LTS:0REK) Quick Ratio Explanation
The quick ratio is more conservative than the Current Ratio because it excludes inventories from current assets. The ratio derives its name presumably from the fact that assets such as cash and marketable securities are quick sources of cash. Inventories generally take time to be converted into cash, and if they have to be sold quickly, the company may have to accept a lower price than book value of these inventories. As a result, they are justifiably excluded from assets that are ready sources of immediate cash.
In general, low or decreasing quick ratios generally suggest that a company is over-leveraged, struggling to maintain or grow sales, paying bills too quickly or collecting receivables too slowly. On the other hand, a high or increasing quick ratio generally indicates that a company is experiencing solid top-line growth, quickly converting receivables into cash, and easily able to cover its financial obligations. Such companies often have faster inventory turnover and cash conversion cycles.
The higher the quick ratio, the better the company's liquidity position.
TransDigm Group Quick Ratio Related Terms
TransDigm Group Quick Ratio Historical Data
* Premium members only.
The historical data trend for TransDigm Group's Quick Ratio 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.
LTS:0REK vs HONA, NOC, LHX: Quick Ratio Comparison
For the Aerospace & Defense subindustry, TransDigm Group's Quick Ratio, along with its competitors' market caps and Quick Ratio 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 Quick Ratio vs Aerospace & Defense Industry
For the Aerospace & Defense industry and Industrials sector, TransDigm Group's Quick Ratio distribution charts can be found below:
* The bar in red indicates where TransDigm Group's Quick Ratio falls into.
The quick ratio measures a company's ability to meet its short-term obligations with its most liquid assets. For this reason, the ratio excludes inventories from current assets.
TransDigm Group's Quick Ratio 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 (LTS:0REK) has a Quick Ratio of 2.53 as of Mar. 2026. Quick ratio is the ratio of current assets less inventory to current liabilities. View historical data on TransDigm Group and its competitors. This is 13% below median its historical median of 2.91. Over the past decade, TransDigm Group's Quick Ratio has ranged from 1.29 to 4.18. According to the industry distribution chart, TransDigm Group ranks #82 out of 361 companies in the Aerospace & Defense industry, placing it in the top 22.7%.
Is TransDigm Group's Quick Ratio too high?
TransDigm Group's current Quick Ratio of 2.53 is 13% below median its 10-year median of 2.91. Over the past 10 years, this metric has ranged from a low of 1.29 to a high of 4.18. The Aerospace & Defense industry median Quick Ratio is 1.30. TransDigm Group's value of 2.53 is 94.6% above this industry median. Based on the distribution chart, TransDigm Group ranks #82 out of 361 companies in the Aerospace & Defense industry, which is in the top quartile — a strong position relative to peers. Overall, TransDigm Group has a GF Score™ of 86/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does TransDigm Group's Quick Ratio compare to HONA and NOC?
According to the Aerospace & Defense industry distribution chart, TransDigm Group ranks #82 out of 361 companies for Quick Ratio. This places TransDigm Group in the top 23% of its industry — outperforming the majority of peers. The industry median Quick Ratio is 1.30. TransDigm Group's value of 2.53 is 94.6% above this benchmark. Historically, TransDigm Group's own Quick Ratio has ranged from 1.29 to 4.18 over the past decade. While the company's 10-year median is 2.91 vs. the industry median of 1.30, TransDigm Group has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Quick Ratio for an Aerospace & Defense company?
The median Quick Ratio among Aerospace & Defense companies is 1.30, based on 361 companies in the industry. Companies in the top quartile (top 25%) have a Quick Ratio significantly above this median, while those in the bottom quartile fall well below. However, Quick Ratio should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. TransDigm Group's current Quick Ratio of 2.53 is 94.6% 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 Quick Ratio mean?
A high Quick Ratio can signal that a stock is expensive relative to its fundamentals. Quick ratio is the ratio of current assets less inventory to current liabilities. View historical data on TransDigm Group and its competitors. For the Aerospace & Defense industry, the median Quick Ratio is 1.30 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. TransDigm Group's current Quick Ratio is 2.53, which is 13% below median its own 10-year median of 2.91. 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 (LTS:0REK) is currently considered Modestly Undervalued. The stock's GF Value™ is $1,620.59, compared to a current price of $1,261.88 — trading 22.1% below its estimated fair value. The current Quick Ratio is 2.53, which is 13% below median its 10-year median of 2.91 and 94.6% above the Aerospace & Defense industry median of 1.30. TransDigm Group's overall GF Score™ is 86/100 with 5 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Quick Ratio calculated?
Quick Ratio is calculated from a company's financial statements. For TransDigm Group (LTS:0REK), the current Quick Ratio is 2.53 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 (LTS:0REK) Overvalued in 2026?
Based on GuruFocus' analysis, TransDigm Group stock appears to be undervalued.
The current stock price of $1,261.88 is trading 22.1% below its estimated GF Value™ of $1,620.59.
GuruFocus considers TransDigm Group to be Modestly Undervalued.
Key valuation signals for LTS:0REK:
Quick Ratio: 2.53 (13% below median its 10-year median of 2.91)
GF Value™: $1,620.59 vs. price of $1,261.88 (22.1% below fair value)
Industry Position: 94.6% above the Aerospace & Defense median (#82 of 361)
No single metric tells the full story. See the LTS:0REK 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.
86GF Score
Get the complete analysis for LTS:0REK
Quick Ratio is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
LTS:0REK has been successfully added to your 
