TransMedics Group Inc (TMDX)

The days of inventory on hand (DOH) for TransMedics Group Inc have experienced fluctuations over the past five years. In December 31, 2020, the company had an elevated DOH of 483.77 days, indicating that it took a significant amount of time for the company to sell its inventory. This may suggest inefficiencies in inventory management or challenges in forecasting demand accurately.

By December 31, 2021, the DOH increased further to 595.80 days, reflecting a prolonged period for inventory turnover. This continued trend could raise concerns about potential issues such as excess inventory levels, obsolete stock, or declining demand for TransMedics' products.

However, there was a notable improvement in performance by December 31, 2022, with the DOH dropping to 266.82 days. This reduction suggests that the company may have implemented more effective inventory management strategies to streamline operations and optimize inventory turnover, leading to a quicker conversion of inventory into sales.

Continuing this positive trajectory, by December 31, 2023, the DOH decreased even further to 184.46 days. This improvement indicates enhanced efficiency in inventory control and potentially a better alignment of supply with demand, which could positively impact the company's liquidity and profitability.

Finally, as of December 31, 2024, the DOH decreased substantially to 94.69 days, signifying a significant enhancement in inventory management practices and a more efficient operation in converting inventory into revenue. This lower DOH suggests that TransMedics Group Inc has successfully optimized its inventory levels to meet demand promptly, potentially leading to improved financial performance and operational effectiveness.

Peer comparison

Dec 31, 2024