📈 Operating Income History (16 Quarters)
🧮 TDG Operating Income Breakdown
Understanding Operating Income
Operating Income, also known as EBIT (Earnings Before Interest and Taxes), measures a company's profit from its core business operations before financing costs and taxes. For TDG, the trailing twelve month operating income is $4.6B.
Why Operating Income Matters
Operating income isolates business performance from capital structure decisions (debt vs equity financing) and tax strategies. This makes it ideal for comparing companies with different debt levels or tax situations. It shows how efficiently management runs the core operations.
TDG's operating income growth rate of 19.08% (based on log-linear regression of 16 quarters) indicates strong operational performance above market averages.
Operating Income vs Other Profitability Metrics
Net Income: $2.1B →
The bottom line after interest and taxes. Net income shows the final profit, while operating income excludes financing decisions.
Free Cash Flow: $1.9B →
Actual cash generated after capital expenditures. FCF can differ significantly from operating income due to working capital and capex.
Owner Earnings: $1.9B →
Buffett's measure of true cash generation. Adds back depreciation and subtracts only maintenance capex.
Revenue: $10.0B →
The top line that operating income is derived from. Operating margin shows what percentage becomes operational profit.
Operating Margin Analysis
TDG's operating margin of 46.04% shows what percentage of revenue converts to operating profit after all operating expenses. Operating margins above 25% are excellent and indicate strong pricing power or operational efficiency.
EV/Operating Income Valuation
The EV/Operating Income ratio of 21.3x shows how the market values TDG's operational earnings. Ratios between 15-25x suggest investors expect continued growth.
Summary: TDG Operating Income Trend
TransDigm Group Incorporated (TDG) has an operating margin of 46.04%, which Zyberno classifies as excellent for a Industrials company — above the 15% threshold Zyberno applies to industrial businesses where input costs, capacity utilization, and overhead shape operating margins, signaling significant pricing power and operational efficiency. Operating income grew at 19.08% annually — above the 10% threshold Zyberno considers healthy growth above market averages. For complete financial analysis, view the full TDG stock report on Zyberno.
Frequently Asked Questions
What is TDG's current operating income?
TransDigm Group Incorporated's TTM operating income is $4.6B, growing at 19.08% annually — above the 10% threshold Zyberno considers healthy growth above market averages.
Is TDG's operating income growing?
TransDigm Group Incorporated (TDG) has an operating margin of 46.04%, which Zyberno classifies as excellent for a Industrials company — above the 15% threshold Zyberno applies to industrial businesses where input costs, capacity utilization, and overhead shape operating margins, signaling significant pricing power and operational efficiency. Operating income grew at 19.08% annually — above the 10% threshold Zyberno considers healthy growth above market averages.
What is TDG's operating margin?
TransDigm Group Incorporated (TDG) has an operating margin of 46.04%, which Zyberno classifies as excellent for a Industrials company — above the 15% threshold Zyberno applies to industrial businesses where input costs, capacity utilization, and overhead shape operating margins, signaling significant pricing power and operational efficiency. Operating income grew at 19.08% annually — above the 10% threshold Zyberno considers healthy growth above market averages.
What is the difference between operating income and EBIT?
Operating income and EBIT (Earnings Before Interest and Taxes) are generally the same metric - both measure profit from core operations before financing costs and taxes. TDG's EBIT/Operating Income is $4.6B.
How does operating income differ from net income?
Operating income excludes interest expense and income taxes, while net income includes them. TDG's operating income is $4.6B versus net income of $2.1B. The difference reflects financing costs and tax burden.
📊 Full TDG Stock Report →
See TDG's intrinsic value, margin of safety, DCF valuation, and complete financial analysis with 250+ metrics.
💵 TDG Free Cash Flow →
Compare to Free Cash Flow which subtracts all capital expenditures, not just maintenance CapEx.
💰 TDG Owner Earnings →
Compare to Buffett's Owner Earnings metric which uses maintenance CapEx instead of total capital expenditures.
📈 TDG Earnings Per Share →
Analyze EPS trends, P/E ratio, earnings yield, and per-share profitability metrics.
🎯 TDG Earnings Surprise (SUE) →
See whether TDG is beating or missing its own earnings trend — Standardized Unexpected Earnings and post-earnings drift.
📊 TDG Revenue →
Analyze revenue trends, growth rate, P/S ratio, and top-line sales performance.
💰 TDG Net Income →
Analyze the bottom-line profit, P/E ratio, and net profit margin trends.
🔶 TDG Operating Income →
Analyze EBIT, operating margin, and core business profitability before interest and taxes.
💜 TDG Gross Profit →
Analyze gross margin, pricing power, and profitability before operating expenses.