TransMedics Group Inc (TMDX)

Payables 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
Payables	US$ in thousands	13,134	13,027	9,225	12,717	12,836	7,031	4,329	3,341	3,080	5,711	2,934	6,651	2,682	2,389	1,289	1,206	778	3,722	4,860	7,247
Payables turnover		12.42	10.82	12.10	6.88	5.06	6.65	8.59	8.44	6.56	2.49	3.63	1.37	3.44	4.05	6.65	7.47	10.95	2.54	2.12	1.34

September 30, 2024 calculation

Payables turnover = Cost of revenue (ttm) ÷ Payables
= $163,098K ÷ $13,134K
= 12.42

TransMedics Group Inc's payables turnover has shown varying trends over the past several quarters. The payables turnover ratio measures how many times a company pays off its accounts payable during a period.

From December 2019 to September 2020, there was a gradual increase in payables turnover, indicating a more efficient management of accounts payable during that period. However, from September 2020 to March 2021, there was a decrease in payables turnover, suggesting a longer payment period or possible inefficiencies in managing payables.

There was a significant jump in payables turnover in the June 2021 quarter, indicating a much higher pace of paying off accounts payable. This trend continued until September 2022, with payables turnover remaining relatively steady at a higher level.

From December 2022 to March 2023, there was a notable decrease in payables turnover before increasing again until September 2024. The recent peak in payables turnover in September 2024 suggests that the company is currently paying off its accounts payable more frequently compared to previous quarters.

Overall, fluctuations in payables turnover can reflect changes in the company's payment policies, negotiation power with suppliers, and overall financial health. It is important for investors and analysts to monitor this ratio to gauge the company's liquidity management and relationships with its suppliers.