TransMedics Group Inc (TMDX)
Days of sales outstanding (DSO)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Receivables turnover | 3.80 | 3.38 | 5.10 | 3.74 | 3.60 | |
| DSO | days | 96.04 | 107.83 | 71.57 | 97.72 | 101.42 |
December 31, 2023 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 3.80
= 96.04
Days Sales Outstanding (DSO) is a financial ratio that indicates the average number of days it takes for a company to collect payment after making a sale. In the case of TransMedics Group Inc, the trend of DSO over the past five years is as follows:
- Dec 31, 2023: 96.04 days
- Dec 31, 2022: 107.83 days
- Dec 31, 2021: 71.57 days
- Dec 31, 2020: 97.72 days
- Dec 31, 2019: 101.42 days
Analyzing the DSO trend, we observe fluctuations in the collection period over the years. In 2021, the DSO significantly decreased to 71.57 days, indicating a more efficient collection process. However, the DSO increased in 2022 to 107.83 days before decreasing again to 96.04 days in 2023.
Overall, a lower DSO is preferable as it signifies quicker payment collection and efficient accounts receivable management. Using DSO along with other financial ratios can provide a comprehensive assessment of TransMedics Group Inc's liquidity and effectiveness in managing its receivables. Further analysis and comparison with industry benchmarks and competitors may provide additional insights into the company's performance and financial health.
Peer comparison
Dec 31, 2023