TransMedics Group Inc (TMDX)

Days of inventory on hand (DOH)

		Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020
Inventory turnover		3.86	3.13	2.90	2.30	1.98	1.65	1.53	1.55	1.37	1.09	0.81	0.64	0.61	0.62	0.74	0.73	0.75	0.66	0.75	0.91
DOH	days	94.58	116.57	125.86	158.57	184.46	221.21	238.47	235.11	266.82	335.69	448.18	573.53	595.80	588.63	490.65	503.07	483.77	556.17	484.57	402.29

December 31, 2024 calculation

DOH = 365 ÷ Inventory turnover
= 365 ÷ 3.86
= 94.58

TransMedics Group Inc experienced fluctuations in its days of inventory on hand (DOH) metric over the analyzed period. DOH measures how many days a company takes to sell its inventory, indicating the efficiency of inventory management.

The DOH for TransMedics Group Inc ranged from a high of 588.63 days on September 30, 2021, to a low of 94.58 days on December 31, 2024. A higher DOH suggests slower inventory turnover, potentially indicating excess inventory levels or sluggish sales.

The company saw a gradual decline in DOH from September 2021 to December 2024, reflecting improved inventory management efficiency. The substantial reduction in DOH suggests the company was able to streamline its inventory processes, leading to quicker turnover and potentially lowering associated carrying costs.

Overall, the decreasing trend in TransMedics Group Inc's DOH signifies enhanced operational effectiveness and could positively impact its financial performance through reduced inventory holding costs and better cash flow management. Further analysis of factors contributing to this improvement would provide valuable insights into the company's inventory management strategies.