TransDigm Group (WBO:TDG) Quick Ratio: 2.01 (As of Jun. 2026)

Author: Vera Yuan Vera Yuan
Vera Yuan
Vera Yuan
Director of Data and Quant Analytics at GuruFocus
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.
Reviewed by: Charlie Tian Charlie Tian
Charlie Tian
Charlie Tian
Founder & CEO of GuruFocus
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.

WBO:TDG TransDigm Group Inc WBO:TDG
88 GF Score
Price €945.50
View Full Analysis

What is TransDigm Group Quick Ratio?

TransDigm Group WBO:TDG 88 Quick Ratio is 2.01 as of Jun. 2026. GuruFocus rates WBO:TDG with a GF Score™ of 88/100. Among 364 Aerospace & Defense companies, TransDigm Group ranks better than 67.86% 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 Jun. 2026 was 2.01.

TransDigm Group has a quick ratio of 2.01. 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:

WBO:TDG's Quick Ratio is not ranked *
in the Aerospace & Defense industry.
Industry Median: 1.32
* Ranked among companies with meaningful Quick Ratio only.

TransDigm Group  (WBO:TDG) 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.

TransDigm Group Quick Ratio Chart

TransDigm Group Annual Data
Trend Sep16 Sep17 Sep18 Sep19 Sep20 Sep21 Sep22 Sep23 Sep24 Sep25
Quick Ratio
Get a 7-Day Free Trial Premium Member Only Premium Member Only 3.51 3.03 3.24 1.29 2.25

TransDigm Group Semi-Annual Data
Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24 Mar25 Jun25 Sep25 Dec25 Mar26 Jun26
Quick Ratio Get a 7-Day Free Trial 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 2.19 2.25 1.81 2.53 2.01

WBO:TDG vs : 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.


WBO:TDG
88GF Score
TransDigm Group Inc WBO:TDG
Quick Ratio is just one metric. See GF Score™, valuation, warning signs, and more.
View Full Analysis

TransDigm Group Quick Ratio Calculation

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

Quick Ratio (A: Sep. 2025 )=(Total Current Assets-Total Inventories)/Total Current Liabilities
=(7012-2095)/2182
=2.25

TransDigm Group's Quick Ratio for the quarter that ended in Jun. 2026 is calculated as

Quick Ratio (Q: Jun. 2026 )=(Total Current Assets-Total Inventories)/Total Current Liabilities
=(7771-2586)/2574
=2.01

* 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.

Frequently Asked Questions Learn more about Quick Ratio →
What does a Quick Ratio of 2.01 mean?
TransDigm Group (WBO:TDG) has a Quick Ratio of 2.01 as of Jun. 2026. Quick ratio is the ratio of current assets less inventory to current liabilities. View historical data on TransDigm Group and its competitors. According to the industry distribution chart, TransDigm Group ranks #117 out of 364 companies in the Aerospace & Defense industry, placing it in the top 32.1%.
Is TransDigm Group's Quick Ratio too high?
TransDigm Group's current Quick Ratio is 2.01. The Aerospace & Defense industry median Quick Ratio is 1.32. TransDigm Group's value of 2.01 is 52.3% above this industry median. Based on the distribution chart, TransDigm Group ranks #117 out of 364 companies in the Aerospace & Defense industry, which is above the industry midpoint. Overall, TransDigm Group has a GF Score™ of 88/100, reflecting its overall financial health beyond just this single metric.
How does TransDigm Group's Quick Ratio compare to ?
According to the Aerospace & Defense industry distribution chart, TransDigm Group ranks #117 out of 364 companies for Quick Ratio. This puts TransDigm Group in the upper half of its industry. The industry median Quick Ratio is 1.32. TransDigm Group's value of 2.01 is 52.3% 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 Quick Ratio for an Aerospace & Defense company?
The median Quick Ratio among Aerospace & Defense companies is 1.32, based on 364 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 2.01 is 52.3% 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 1.32 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. TransDigm Group's current Quick Ratio is 2.01. 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?
TransDigm Group (WBO:TDG) has a current Quick Ratio of 2.01. The current Quick Ratio is 2.01 and 52.3% above the Aerospace & Defense industry median of 1.32. TransDigm Group's overall GF Score™ is 88/100. 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 (WBO:TDG), the current Quick Ratio is 2.01 as of Jun. 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.

TransDigm Group Business Description

Comparable Companies
Address 1350 Euclid Avenue, Suite 1600, Cleveland, OH, USA, 44115
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.
88GF Score

Get the complete analysis for WBO:TDG

Quick Ratio is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

€945.50
Price