Forensic Analysis · Aerospace & Defense · as of Nov 8, 2026
TransDigm Group Inc (TDG)
A forensic read on TransDigm Group Inc built from its complete SEC filings — financial-health screens, earnings quality, red flags and a price-aware rating. Reproducible math, not opinion.
C · Mixed — selective
Forensic grade
Clean
Earnings quality
3
Forensic signals
11.2%
Revenue growth
This free snapshot doesn't read filing or proxy text, so the auditor-quality and governance checks that can lower a grade were not evaluated (auditor quality, say on pay, board independence, going concern). Those checks only ever lower a grade, so the full analysis can land below the grade above but never above it — treat it as the most favourable reading, not the settled one.
TransDigm Group Inc earns a C (Mixed — selective) forensic quality grade. 3 forensic signals were flagged in its latest SEC filings, led by accruals ratio (% of NOA).
What the filings flag
+33.2%
FY2024→FY2025
Accruals ratio (% of NOA).Net operating assets grew +33.2% relative to their own average in FY2025 — scaled by NOA itself, not by total assets, which is what the Forensic Screens card's own accrual row divides by. Accruals are building sharply — a large slice of profit sits in operating assets, not cash. An accrual is a claim that still has to be collected or written down, so the gap resolves in a later period whichever way it goes. Net operating assets also rose $201.0M through acquisitions (increase in goodwill and intangibles); that purchase is investing and is excluded from this ratio. The build is led by receivables up +17% against revenue +11% and inventory up +12% against +8% in cost of sales. A cash-flow measure on the same base disagrees: reported earnings ran in line with operating cash by 0% of net operating assets, against an accruals ratio of 33.2%. The two are computed differently: the accruals ratio is the change in net operating assets over average net operating assets, while the cash-flow figure is net income less operating cash flow over that same average. Read them as two results, not one.Accruals ratio: the year-over-year change in net operating assets, relative to their own average.NOA (net operating assets): the money tied up in running the business, operating assets minus operating liabilities.
206d
FY2024→FY2025
Inventory days.Days inventory outstanding moved from 195 to 206 FY2024→FY2025 (against cost of goods sold; inventory +12% vs +8% in cost of sales). Inventory is building a little faster than sales — watch for markdowns.
-92%
FY2024→FY2025
Dividend — cut.The payout was CUT ~92% in FY2025 (from FY2024). It still returns some cash, but it is NOT the dependable, rising dividend an unbroken streak implies.
Key fundamentals
Latest Revenue$8.83B
Revenue Growth YoY+11.2%
Revenue CAGR (2yr)+15.8%
Net Margin23.5%
Free Cash Flow$1.82B
The forensic grade and screens above are free — no account needed. Want the AI investment read on top — the 0–100 rating, thesis, bull-vs-bear, red flags and the 12-month scenario, written from TransDigm Group Inc's actual 10-K/10-Q/8-K filings?