TransDigm Group INC (TDG) — payout ratio, three ways
Fiscal year ending 2025-09-30 · sector Industrials · payout ratios computed from SEC filings, not taken from a data vendor.
| Basis | Payout | Why it differs |
|---|---|---|
| GAAP earnings | 8.5% | The figure most screeners publish. |
| Operating cash flow | 7.8% | Before capital spending, so it understates the payout that free cash flow shows. |
| Free cash flow | 8.8% | What is left after maintaining the business. |
All bases agree, within a percentage point. No denominator flatters this dividend more than another; there is nothing here that a single headline figure would hide.
Coverage rating 73 / 100 — Adequate. ? Peer standing 43/50Direction 30/30Stability 0/20
Free cash flow payout, last 6 years
| Fiscal year | Payout |
|---|---|
| 2025-09-30 | 8.8% |
| 2024-09-30 | 108.4% |
| 2023-09-30 | 3.1% |
| 2022-09-30 | 131.6% |
| 2021-09-30 | 9.0% |
| 2020-09-30 | 174.0% |
Among the 73 industrials companies here, 86% pay out a larger share on this basis — this is comfortable for the sector.
The arithmetic
- GAAP earnings — dividends declared per share $2.73 ÷ diluted EPS $32.08
- Operating cash flow — dividends paid $159.0m ÷ operating cash flow $2,038.0m
- Free cash flow — dividends paid $159.0m ÷ (operating cash flow $2,038.0m − capex $222.0m)
Where the figures came from
- 10-K filed 2025-11-12 · accession
0001260221-25-000081
Every one is public at sec.gov and free to check. That is the point — you should not have to take my word for any of it.
Caveats on this company
- DPS derived from dividends paid ($2.73); no per-share tag filed
Computed by an open pipeline reading SEC XBRL directly. If any number here looks wrong to you, tell me — that is more useful to me than agreement.