TransMedics Group Inc (TMDX)
Activity ratios
Short-term
Turnover ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Inventory turnover | 3.85 | 1.98 | 1.37 | 0.61 | 0.75 |
| Receivables turnover | — | — | — | — | — |
| Payables turnover | — | — | — | — | — |
| Working capital turnover | 1.01 | 0.53 | 0.41 | 0.32 | 0.19 |
TransMedics Group Inc's inventory turnover has shown an improving trend over the years, indicating that the company is managing its inventory more efficiently. The ratio has increased from 0.75 in 2020 to 3.85 in 2024, which suggests that the company has been able to sell its inventory more rapidly.
On the other hand, the receivables turnover and payables turnover ratios are not provided in the data, indicating that specific information related to the collection of receivables and payment of payables is not available.
The working capital turnover ratio, on the other hand, has demonstrated a positive trend, increasing from 0.19 in 2020 to 1.01 in 2024. This indicates that TransMedics Group Inc has been able to generate higher sales relative to its working capital, reflecting improved efficiency in the utilization of working capital resources over the years.
Average number of days
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 94.69 | 184.46 | 266.82 | 595.80 | 483.77 |
| Days of sales outstanding (DSO) | days | — | — | — | — | — |
| Number of days of payables | days | — | — | — | — | — |
Based on the provided data, let's analyze the activity ratios of TransMedics Group Inc:
1. Days of Inventory on Hand (DOH):
- In December 31, 2020, the company had 483.77 days of inventory on hand, indicating that on average, it took the company approximately 484 days to sell its inventory.
- This ratio increased to 595.80 days by December 31, 2021, suggesting that the company's inventory turnover slowed down.
- By December 31, 2022, the DOH improved significantly to 266.82 days, signaling a faster turnover of inventory.
- The trend continued with further improvement, as by December 31, 2023, the DOH decreased to 184.46 days.
- By the end of December 31, 2024, the DOH was 94.69 days, reflecting a notable reduction in the time taken to sell inventory.
2. Days of Sales Outstanding (DSO):
- Unfortunately, the data does not provide information on the Days of Sales Outstanding for any of the years. DSO is a measure of how long it takes for a company to collect revenue after a sale, and typically lower values are preferable as they indicate a quicker collection cycle.
3. Number of Days of Payables:
- Similar to DSO, there is no data available for the Number of Days of Payables. This metric would have shown how long the company takes to pay its suppliers. A longer period of payables could indicate better cash flow management.
In conclusion, the analysis of the activity ratios based on the provided data indicates improvements in inventory turnover over the years, although further insights could have been gained with information on DSO and the Number of Days of Payables.
Long-term
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Fixed asset turnover | — | — | 3.84 | 1.93 | 5.39 |
| Total asset turnover | 0.55 | 0.34 | 0.34 | 0.22 | 0.17 |
The analysis of the long-term activity ratios of TransMedics Group Inc shows a significant fluctuation in the fixed asset turnover ratio over the years. The ratio decreased from 5.39 in December 2020 to 1.93 in December 2021 before rebounding to 3.84 in December 2022. However, there is missing data for December 31, 2023 and December 31, 2024.
In contrast, the total asset turnover ratio demonstrates an upward trend over the period. It increased from 0.17 in December 2020 to 0.55 in December 2024, reflecting an improvement in the efficiency of utilizing total assets to generate revenue.
Overall, the fixed asset turnover ratio indicates volatility in the efficiency of generating sales from fixed assets, while the total asset turnover ratio shows a positive trend in utilizing all assets to generate sales over the years. Further analysis would be beneficial to understand the reasons behind these fluctuations and trends in the long-term activity ratios of TransMedics Group Inc.