TransMedics Group Inc (TMDX)

Inventory turnover

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Cost of revenue	US$ in thousands	87,530	28,187	9,103	9,004	9,741
Inventory	US$ in thousands	44,235	20,605	14,859	11,934	11,216
Inventory turnover		1.98	1.37	0.61	0.75	0.87

December 31, 2023 calculation

Inventory turnover = Cost of revenue ÷ Inventory
= $87,530K ÷ $44,235K
= 1.98

TransMedics Group Inc's inventory turnover has shown an increasing trend over the past five years. The company was able to efficiently manage its inventory in 2023, with a turnover ratio of 1.98, indicating that its inventory was sold and replaced almost twice during the year. This represents a significant improvement compared to the previous years, where the inventory turnover was 1.37 in 2022, 0.61 in 2021, 0.75 in 2020, and 0.87 in 2019.

The improvement in inventory turnover suggests that TransMedics Group Inc has been more effective in managing its inventory levels and turning inventory into sales. A higher inventory turnover ratio generally indicates better inventory management and more efficient operations. This may lead to lower holding costs, reduced risk of obsolete inventory, and improved cash flows. Overall, the increasing inventory turnover trend reflects positively on the company's operational efficiency and effectiveness in managing its inventory.