TransMedics Group Inc (TMDX)

Days of inventory on hand (DOH)

		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	Dec 31, 2019
Inventory turnover		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	0.87
DOH	days	116.71	126.04	158.72	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	420.27

September 30, 2024 calculation

DOH = 365 ÷ Inventory turnover
= 365 ÷ 3.13
= 116.71

The days of inventory on hand (DOH) for TransMedics Group Inc have shown fluctuations over the periods analyzed. The DOH has decreased from 573.53 days in March 2022 to 116.71 days in September 2024, indicating a significant improvement in managing inventory levels more efficiently.

An increasing DOH, such as the peak of 595.80 days in June 2022, suggests that the company may have been holding excessive inventory, leading to potential liquidity issues and increased costs associated with carrying inventory. Conversely, a decreasing DOH, as seen in more recent periods, indicates better inventory management practices, possibly resulting in lower carrying costs and improved cash flow.

Overall, the trend of decreasing DOH over the periods is a positive indicator of TransMedics' efficiency in managing its inventory levels. However, it is important for the company to continue monitoring its inventory closely to strike a balance between having enough inventory to meet demand and avoiding excess holding costs.