TransDigm Group (MEX:TDG) ROCE % : 20.05% (As of Sep. 2024)

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What is TransDigm Group ROCE %?

ROCE % measures how well a company generates profits from its capital. It is calculated as EBIT divided by Capital Employed, where Capital Employed is calculated as Total Assets minus Total Current Liabilities. TransDigm Group's annualized ROCE % for the quarter that ended in Sep. 2024 was 20.05%.

TransDigm Group ROCE % Historical Data

The historical data trend for TransDigm Group's ROCE % 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 ROCE % Chart

TransDigm Group Annual Data

Trend

Sep15

Sep16

Sep17

Sep18

Sep19

Sep20

Sep21

Sep22

Sep23

Sep24

ROCE %

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11.82

9.94

12.69

15.30

19.71

TransDigm Group Quarterly Data
	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23	Mar24	Jun24	Sep24
ROCE %	Get a 7-Day Free Trial															18.64	16.70	17.50	19.58	20.05

TransDigm Group ROCE % Calculation

TransDigm Group's annualized ROCE % for the fiscal year that ended in Sep. 2024 is calculated as:

ROCE %	=	EBIT	/	( (Capital Employed	+	Capital Employed)	/ count )
		(A: Sep. 2024 )		(A: Sep. 2023 )		(A: Sep. 2024 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(A: Sep. 2024 )		(A: Sep. 2023 )		(A: Sep. 2024 )
	=	68935.74	/	( ( (347855.373 - 27504.438)	+	(503796.016 - 124816.812) )	/ 2 )
	=	68935.74	/	( (320350.935	+	378979.204)	/ 2 )
	=	68935.74	/	349665.0695
	=	19.71 %

TransDigm Group's ROCE % of for the quarter that ended in Sep. 2024 is calculated as:

ROCE %	=	EBIT ⁽¹⁾	/	( (Capital Employed	+	Capital Employed)	/ count )
		(Q: Sep. 2024 )		(Q: Jun. 2024 )		(Q: Sep. 2024 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(Q: Sep. 2024 )		(Q: Jun. 2024 )		(Q: Sep. 2024 )
	=	74665.616	/	( ( (399891.209 - 33910.511)	+	(503796.016 - 124816.812) )	/ 2 )
	=	74665.616	/	( ( 365980.698	+	378979.204 )	/ 2 )
	=	74665.616	/	372479.951
	=	20.05 %

(1) Note: The EBIT data used here is four times the quarterly (Sep. 2024) EBIT data.

TransDigm Group (MEX:TDG) ROCE % Explanation

ROCE % can be especially useful when comparing the performance of capital-intensive companies. Unlike ROE %, which indicates the profitability of Shareholders Equity, ROCE % also considers long-term debt in Capital Employed. This can be helpful when analyzing companies with significant debt, as the result is neutralized by taking debt into consideration.

Generally speaking, a higher ROCE % indicates a stonger profitability for a company. Moreover, it is important to look at the ratio from a long term perspective. Investors tend to favor companies with stable and rising ROCE % trend over those with volatile ones.

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TransDigm Group Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Industrials » Aerospace & Defense » TransDigm Group Inc (MEX:TDG) » Definitions » ROCE %

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TDG:USA 0REK:UK T7D:Germany T7D:Germany T1DG34:Brazil

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.