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.
Peer comparison
Dec 31, 2023