TransMedics Group Inc (TMDX)

Inventory turnover

		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
Cost of revenue (ttm)	US$ in thousands	163,098	140,950	111,630	87,530	64,952	46,752	37,199	28,187	20,197	14,226	10,637	9,103	9,220	9,676	8,576	9,004	8,521	9,457	10,308	9,741
Inventory	US$ in thousands	52,152	48,671	48,541	44,235	39,365	30,545	23,961	20,605	18,575	17,468	16,714	14,859	14,869	13,007	11,820	11,934	12,984	12,555	11,361	11,216
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

September 30, 2024 calculation

Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $163,098K ÷ $52,152K
= 3.13

TransMedics Group Inc's inventory turnover ratio has shown a mixed performance over the past few quarters. The ratio increased from 0.87 in December 2019 to 3.13 in September 2024, indicating that the company is selling its inventory more frequently within the latest quarter. This could suggest efficient inventory management and potential liquidity benefits.

It is noteworthy that the inventory turnover ratio was below 1 in several quarters prior to December 2021, which may indicate that the company was holding on to inventory for extended periods. However, there has been a steady improvement in this metric since then, with the ratio consistently increasing.

Overall, the increasing trend in inventory turnover ratio suggests that TransMedics Group Inc has been more effective in managing its inventory levels and converting them into sales over recent quarters. This can positively impact the company's working capital management and potentially lead to improved financial performance.