TransMedics Group Inc (TMDX)

Payables 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
Payables	US$ in thousands	12,717	3,341	6,651	1,206	7,247
Payables turnover		6.88	8.44	1.37	7.47	1.34

December 31, 2023 calculation

Payables turnover = Cost of revenue ÷ Payables
= $87,530K ÷ $12,717K
= 6.88

TransMedics Group Inc's payables turnover ratio has fluctuated over the past five years. In 2023, the company's payables turnover ratio was 6.88, showing a decrease from the previous year's ratio of 8.44. This decline may suggest that the company took longer to pay off its suppliers in 2023 compared to 2022. However, the 2023 ratio is still higher than the ratios in 2021 and 2019, indicating an improvement in payables management during these years.

It is important to note that a higher payables turnover ratio generally indicates that the company is managing its accounts payable more efficiently by paying off its suppliers more quickly. Conversely, a lower ratio may suggest that the company is taking more time to settle its payables, which could impact relationships with suppliers or indicate cash flow issues.

Overall, TransMedics Group Inc's payables turnover ratio has exhibited some variability over the past five years, and further analysis of the company's financial position and operational efficiency is recommended to understand the reasons behind these fluctuations.