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TransDigm GroupWBO:TDG 88 ROA % is 2.07% 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 83.79% on this metric.
ROA % is calculated as Net Income divided by its average Total Assets over a certain period of time. TransDigm Group's annualizedNet Income for the quarter that ended in Jun. 2026 was €539.00 Mil.
TransDigm Group's average Total Assets over the quarter that ended in Jun. 2026 was €26,098.00 Mil. Therefore, TransDigm Group's annualized ROA % for the quarter that ended in Jun. 2026 was 2.07%.
The historical rank and industry rank for TransDigm Group's ROA % or its related term are showing as below:
WBO:TDG's ROA % is not ranked *
in the Aerospace & Defense industry.
Industry Median: 2.17 * Ranked among companies with meaningful ROA % only.
ROA % measures the rate of return on the total assets (shareholder equity plus liabilities). It measures a firm's efficiency at generating profits from shareholders' equity plus its liabilities. ROA % shows how well a company uses what it has to generate earnings. ROA %s can vary drastically across industries. Therefore, ROA % should not be used to compare companies in different industries. For retailers, a ROA % of higher than 5% is expected. For example, Wal-Mart (WMT) has a ROA % of about 8% as of 2012. For banks, ROA % is close to their interest spread. A banks ROA % is typically well under 2%.
Similar to ROE, ROA % is affected by profit margins and asset turnover. This can be seen from the Du Pont Formula:
Note:
The Net Income data used here is one times the annual (Jun. 2026) net income data. The Revenue data used here is one times the annual (Jun. 2026) revenue data.
* 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.
Be Aware
Like ROE, ROA % is calculated with only 12 months data. Fluctuations in the company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective. ROA % can be affected by events such as stock buyback or issuance, and by goodwill, a company's tax rate and its interest payment. ROA % may not reflect the true earning power of the assets. A more accurate measurement is ROC % (ROC).
Many analysts argue the higher return the better. Buffett states that really high ROA % may indicate vulnerability in the durability of the competitive advantage.
E.g. Raising $43b to take on KO is impossible, but $1.7b to take on Moody's is. Although Moody's ROA % and underlying economics is far superior to Coca Cola, the durability is far weaker because of lower entry cost.
TransDigm Group ROA % Related Terms
TransDigm Group ROA % Historical Data
* Premium members only.
The historical data trend for TransDigm Group's ROA % 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.
For the Aerospace & Defense subindustry, TransDigm Group's ROA %, along with its competitors' market caps and ROA % 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 ROA % vs Aerospace & Defense Industry
For the Aerospace & Defense industry and Industrials sector, TransDigm Group's ROA % distribution charts can be found below:
* The bar in red indicates where TransDigm Group's ROA % falls into.
* 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.
In the calculation of annual ROA %, the net income of the last fiscal year and the average total assets over the fiscal year are used. In calculating the quarterly data,
the Net Income data used here is one times the annual (Jun. 2026) net income data.
ROA % is displayed in the 30-year financial page.
TransDigm Group (WBO:TDG) has a ROA % of 2.07% as of Jun. 2026. Return on assets is the ratio of current-period net income to average two-period total assets. View historical data on TransDigm Group and its competitors. According to the industry distribution chart, TransDigm Group ranks #59 out of 364 companies in the Aerospace & Defense industry, placing it in the top 16.2%.
Is TransDigm Group's ROA % too high?
TransDigm Group's current ROA % is 2.07%. The Aerospace & Defense industry median ROA % is 2.17. TransDigm Group's value of 2.07% is 4.6% below this industry median. Based on the distribution chart, TransDigm Group ranks #59 out of 364 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 88/100, reflecting its overall financial health beyond just this single metric.
How does TransDigm Group's ROA % compare to ?
According to the Aerospace & Defense industry distribution chart, TransDigm Group ranks #59 out of 364 companies for ROA %. This places TransDigm Group in the top 16% of its industry — outperforming the majority of peers. The industry median ROA % is 2.17. TransDigm Group's value of 2.07% is 4.6% below this benchmark. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good ROA % for an Aerospace & Defense company?
The median ROA % among Aerospace & Defense companies is 2.17, based on 364 companies in the industry. Companies in the top quartile (top 25%) have a ROA % significantly above this median, while those in the bottom quartile fall well below. However, ROA % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. TransDigm Group's current ROA % of 2.07% is 4.6% below 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 ROA % mean?
A high ROA % can signal that a stock is expensive relative to its fundamentals. Return on assets is the ratio of current-period net income to average two-period total assets. View historical data on TransDigm Group and its competitors. For the Aerospace & Defense industry, the median ROA % is 2.17 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. TransDigm Group's current ROA % is 2.07%. 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 ROA % of 2.07%. The current ROA % is 2.07% and 4.6% below the Aerospace & Defense industry median of 2.17. 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 ROA % calculated?
ROA % is calculated from a company's financial statements. For TransDigm Group (WBO:TDG), the current ROA % is 2.07% 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 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
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