TransMedics Group Inc (TMDX)

Days of inventory on hand (DOH)

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Inventory turnover		1.98	1.37	0.61	0.75	0.87
DOH	days	184.46	266.82	595.80	483.77	420.27

December 31, 2023 calculation

DOH = 365 ÷ Inventory turnover
= 365 ÷ 1.98
= 184.46

TransMedics Group Inc's Days of Inventory on Hand (DOH) has shown a fluctuating trend over the past five years. The decreasing trend is evident from 2019 to 2021, where DOH decreased from 420.27 days to 595.80 days, indicating an improvement in managing inventory levels. However, there was a significant increase in DOH in 2022 to 266.82 days, followed by a further decrease in 2023 to 184.46 days.

A lower DOH value suggests that the company is selling its inventory faster, which can lead to lower carrying costs and reduced risk of obsolescence. Conversely, a higher number of days could indicate overstocking or slow-moving inventory, potentially tying up capital and increasing carrying costs.

It would be advisable for TransMedics Group Inc to monitor its inventory turnover and management practices closely to ensure optimal levels of inventory that align with demand and operational efficiency.