TransMedics Group Inc (TMDX)

Inventory turnover

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Cost of revenue	US$ in thousands	179,459	87,530	28,187	9,103	9,004
Inventory	US$ in thousands	46,554	44,235	20,605	14,859	11,934
Inventory turnover		3.85	1.98	1.37	0.61	0.75

December 31, 2024 calculation

Inventory turnover = Cost of revenue ÷ Inventory
= $179,459K ÷ $46,554K
= 3.85

The inventory turnover ratio for TransMedics Group Inc has shown a positive trend over the past five years, starting at 0.75 in December 31, 2020, and steadily increasing to 3.85 by December 31, 2024. This indicates that the company has been more effective in managing its inventory levels and converting inventory into sales. A higher inventory turnover ratio suggests that TransMedics has been able to sell its products more efficiently, which can lead to improved cash flow and profitability. Overall, the increasing trend in inventory turnover reflects positively on TransMedics' operational efficiency and inventory management practices.