Transdigm Group Incorporated — Earnings Quality Grade F
TDG · Industrials
Major red flags
Screening Summary
Financial Trends
Revenue & Net Income ($B)
Margins (%)
18-Point Screening
Revenue Quality
DSO 67 days, change +3 days YoY
AR growth 17.1% exceeds revenue growth 11.2%
Revenue grew 11.2% but CFFO declined -0.3%
Expense Quality
Inventory 11.7% vs COGS 7.7%. Normal
CapEx growth 34.5% is >2x revenue growth 11.2%
SG&A/Gross Profit = 17.3%, excellent (<30%)
Gross margin 60.1%, change +1.3pp. Stable
Cash Flow Quality
CFFO/NI = 0.98. Profits backed by cash
FCF $1.8B, FCF/NI = 0.88
Accruals ratio = 0.2%. Low accruals
Cash $2.8B covers only 9% of debt $30.0B
Balance Sheet Health
Goodwill+Intangibles $14.1B = -145% of equity. Manageable
Debt/EBITDA = 6.6x (>4x). Financial stress
Other assets grew 23.5% vs revenue 11.2%
No write-off data
Acquisition Risk
FCF after acquisitions positive
Goodwill+Intangibles change 1% YoY. Normal
Manipulation Score
M-Score = -2.32 (< -2.22). Unlikely manipulator
Beneish M-Score
Altman Z-Score
Generated from public financial data using forensic accounting frameworks. Not investment advice. Data: Yahoo Finance · 2026-04-10