What is a cash flow waterfall?

A cash flow waterfall is a bar chart that walks from operating cash flow through capital expenditure to free cash flow, then shows how the remaining cash is allocated — acquisitions, buybacks, dividends, debt, and other financing — ending at the net change in cash. Each step is colour-coded: green bars add to the running total, red bars subtract.

How does TransDigm Group (TDG) spend its free cash flow?

For TTM through Q1 2026, TransDigm Group generated $2.11B of operating cash flow and $1.85B of free cash flow — a free cash flow margin of 87.9% of operating cash flow. The waterfall breaks down how the remaining cash was allocated across investing and financing activities.

How much did TransDigm Group (TDG) return via buybacks and dividends?

The waterfall shows buybacks (share repurchases) and dividends paid as separate steps in the financing section. Together these represent TransDigm Group's shareholder returns for TTM through Q1 2026. You can compare these against free cash flow to assess the capital-return payout ratio.

TransDigm Group (TDG) Cash Flow Waterfall

Operating CF

$2.11B

Capex

-$255M

Free Cash Flow

$1.85B

FCF Margin

+87.9%

Cash flow waterfall for TransDigm Group (TDG) — TTM through Q1 2026

Free cash flow: $1.85B

Cash flow breakdown for TransDigm Group (TDG) — TTM through Q1 2026

Line item	Amount	Running total
Operating Cash Flow	$2.11B	$2.11B
Capital Expenditure	-$255M	$1.85B
Free Cash Flow	$1.85B	$1.85B
Acquisitions	-$1.28B	$571M
Other Investing	-$7M	$564M
Share Buybacks	-$852M	-$288M
Dividends Paid	-$5.29B	-$5.58B
Net Debt Change	$6.81B	$1.23B
Other Financing & FX	$229M	$1.46B
Net Cash Increase	$1.46B	$1.46B

Operating Cash Flow$2.11B
Capital Expenditure-$255M
Free Cash Flow$1.85B
Acquisitions-$1.28B
Other Investing-$7M
Share Buybacks-$852M
Dividends Paid-$5.29B
Net Debt Change$6.81B
Other Financing & FX$229M
Net Cash Increase$1.46B

Want to see what drove the FCF change?Free Cash Flow Bridge

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