TransDigm Group (TransDigm Group) Days Inventory : 193.25 (As of Sep. 2023)

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What is TransDigm Group Days Inventory?

Days Inventory is also known as Days Sales of Inventory (DSI). TransDigm Group's Average Total Inventories for the three months ended in Sep. 2023 was $1,610 Mil. TransDigm Group's Cost of Goods Sold for the three months ended in Sep. 2023 was $760 Mil. Hence, TransDigm Group's Days Inventory for the three months ended in Sep. 2023 was 193.25.

The historical rank and industry rank for TransDigm Group's Days Inventory or its related term are showing as below:

TDG' s Days Inventory Range Over the Past 10 Years
Min: 144.12 Med: 173.13 Max: 197.15
Current: 190.26

During the past 13 years, TransDigm Group's highest Days Inventory was 197.15. The lowest was 144.12. And the median was 173.13.

TDG's Days Inventory is ranked worse than
61.46% of 288 companies
in the Aerospace & Defense industry
Industry Median: 138.905 vs TDG: 190.26

TransDigm Group's Days Inventory declined from Sep. 2022 (193.91) to Sep. 2023 (193.25).

Inventory Turnover measures how fast the company turns over its inventory within a year. TransDigm Group's Inventory Turnover for the three months ended in Sep. 2023 was 0.47.

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 three months ended in Sep. 2023 was 0.87.

TransDigm Group Days Inventory Historical Data

The historical data trend for TransDigm Group's Days Inventory 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 Days Inventory Chart

TransDigm Group Annual Data

Trend

Sep14

Sep15

Sep16

Sep17

Sep18

Sep19

Sep20

Sep21

Sep22

Sep23

Days Inventory

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154.10

186.96

197.12

197.15

196.14

TransDigm Group Quarterly Data
	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23
Days Inventory	Get a 7-Day Free Trial															209.32	204.25	199.86	193.25	197.40

Competitive Comparison of TransDigm Group's Days Inventory

For the Aerospace & Defense subindustry, TransDigm Group's Days Inventory, along with its competitors' market caps and Days Inventory 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's Days Inventory Distribution in the Aerospace & Defense Industry

For the Aerospace & Defense industry and Industrials sector, TransDigm Group's Days Inventory distribution charts can be found below:

* The bar in red indicates where TransDigm Group's Days Inventory falls into.

TransDigm Group Days Inventory Calculation

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 fiscal year that ended in Sep. 2023 is calculated as

	Days Inventory (A: Sep. 2023 )
=	Average Total Inventories					/	Cost of Goods Sold	*	Days in Period
=	( (Total Inventories (A: Sep. 2022 )	+	Total Inventories (A: Sep. 2023 ))	/	count )	/	Cost of Goods Sold (A: Sep. 2023 )	*	Days in Period
=	( (1332	+	1616)	/	2 )	/	2743	*	365
=	1474					/	2743	*	365
=	196.14

TransDigm Group's Days Inventory for the quarter that ended in Sep. 2023 is calculated as:

	Days Inventory (Q: Sep. 2023 )
=	Average Total Inventories					/	Cost of Goods Sold	*	Days in Period
=	( (Total Inventories (Q: Jun. 2023 )	+	Total Inventories (Q: Sep. 2023 ))	/	count )	/	Cost of Goods Sold (Q: Sep. 2023 )	*	Days in Period
=	( (1603	+	1616)	/	2 )	/	760	*	365 / 4
=	1609.5					/	760	*	365 / 4
=	193.25

TransDigm Group (NYSE:TDG) Days Inventory Explanation

Days Inventory indicates the liquidity of the inventory. Generally, a lower Days Inventory is preferred as it indicates a shorter duration to clear off the inventory. An increase of the ratio may indicate the company's sales slowed. Similar ratios related to Days Inventory are:

1. Inventory Turnover measures how fast the company turns over its inventory within a year.

TransDigm Group's Inventory Turnover for the three months ended in Sep. 2023 is calculated as

Inventory Turnover	=	Cost of Goods Sold	/	Average Total Inventories
	=	760	/	1609.5
	=	0.47

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 three months ended in Sep. 2023 is calculated as

Inventory-to-Revenue	=	Average Total Inventories	/	Revenue
	=	1609.5	/	1852
	=	0.87

Be Aware

A lot of business are seasonable. It makes more sense to compare Days Inventory from the same period in the previous year instead of from the previous quarter.

TransDigm Group Days Inventory Related Terms

Thank you for viewing the detailed overview of TransDigm Group's Days Inventory provided by GuruFocus.com. Please click on the following links to see related term pages.

TransDigm Group (TransDigm Group) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Industrials » Aerospace & Defense » TransDigm Group Inc (NYSE:TDG) » Definitions » Days Inventory

Comparable Companies

Traded in Other Exchanges

TDG:Mexico T7D:Germany T1DG34:Brazil

Address

1301 East 9th Street, Suite 3000, Cleveland, OH, USA, 44114

Website

https://www.transdigm.com

TransDigm manufactures and services a diverse set of components and parts for commercial and military aircraft. The firm organizes itself in three segments: a power and control segment, airframes, and a small nonaviation 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 products with substantial aftermarket demand. TransDigm regularly employs financial leverage to amplify its operating results.

Executives

Joel Reiss	officer: Executive Vice President	1301 E. 9TH STREET, SUITE 3000, CLEVELAND OH 44114
W Nicholas Howley	officer: Chief Executive Officer	C/O TRANSDIGM INC., 1301 EAST NINTH STREET, SUITE 3710, CLEVELAND OH 44114
Michael Lisman	officer: Chief Financial Officer	1301 EAST 9TH STREET, SUITE 3000, CLEVELAND OH 44114
Robert J Small	director
Sean P Hennessy	director	C/O THE SHERWIN WILLIAMS CO, 101 PROSPECT AVE NW, CLEVELAND OH 44115
Jorge Valladares	officer: Pres., Adel Wiggins Group	ADELWIGGINS GROUP, 5000 TRIGGS STREET, LOS ANGELES CA 90022
Sarah Wynne	officer: Corporate Accounting Officer	1301 EAST 9TH STREET, SUITE 3000, CLEVELAND OH 44114
Kevin M Stein	officer: COO - Power	TRANSDIGM GROUP INCORPORATED, 1301 EAST 9TH STREET, SUITE 3000, CLEVELAND OH 44114
Jessica L Warren	officer: GC, CCO, Secretary	1301 EAST NINTH STREET, SUITE 3000, CLEVELAND OH 44114
Mervin Dunn	director	COMMERCIAL VEHICLE GROUP, INC., 6530 WEST CAMPUS WAY, NEW ALBANY OH 43054
John Staer	director	C.F.MOLLERS ALLE 16, 8TV, 2300 COPENHAGEN S G7 DK
Jane M. Cronin	director	101 W. PROSPECT AVENUE, CLEVELAND OH 44115
Raymond F Laubenthal	officer: President and COO	TRANSDIGM GROUP INCORPORATED, 1301 EAST 9TH STREET, SUITE 3710, CLEVELAND OH 44114
Robert S Henderson	officer: Exec.V.P. & Pres., AdelWiggins	ADELWIGGINS GROUP, 5000 TRIGGS STREET, LOS ANGELES CA 90022
Halle Fine Terrion	officer: GC, CCO, Secretary	1301 EAST 9TH STREET, SUITE 3000, CLEVELAND OH 44114