TransMedics Group Inc (TMDX)
Activity ratios
Short-term
Turnover ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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 |
| Receivables turnover | 4.45 | 4.42 | 3.62 | 3.80 | 3.16 | 3.18 | 3.08 | 3.38 | 3.26 | 3.96 | 3.33 | 5.10 | 6.80 | 4.77 | 3.40 | 3.74 | 3.92 | 5.46 | 4.31 | 3.60 |
| 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 |
| Working capital turnover | 0.93 | 0.79 | 0.68 | 0.53 | 0.39 | 0.24 | 0.51 | 0.41 | 0.31 | 0.71 | 0.46 | 0.32 | 0.26 | 0.25 | 0.20 | 0.19 | 0.17 | 0.17 | 0.35 | 0.28 |
TransMedics Group Inc's activity ratios provide insights into the efficiency of its management of inventory, receivables, payables, and working capital.
- Inventory turnover has been fluctuating but generally improving over the periods, reaching 3.13 in the most recent quarter. This indicates that the company is selling through its inventory faster compared to previous periods.
- Receivables turnover has also shown variability, with an overall increasing trend, reaching 4.45 in the latest period. This suggests that the company is collecting its accounts receivables more quickly, which is a positive sign for cash flow management.
- Payables turnover has been inconsistent, but there is a general upward trend, with the latest quarter showing a turnover of 12.42. This indicates that TransMedics Group Inc is taking more time to pay its suppliers, potentially improving its cash conversion cycle.
- Working capital turnover has shown fluctuations, with the most recent quarter standing at 0.93. This ratio indicates how efficiently the company is using its working capital to generate sales and suggests that TransMedics Group Inc is utilizing its working capital effectively to support its operations.
Overall, these activity ratios indicate that TransMedics Group Inc has been improving its efficiency in managing its inventory, receivables, payables, and working capital to drive business operations and financial performance.
Average number of days
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 116.71 | 126.04 | 158.72 | 184.46 | 221.21 | 238.47 | 235.11 | 266.82 | 335.69 | 448.18 | 573.53 | 595.80 | 588.63 | 490.65 | 503.07 | 483.77 | 556.17 | 484.57 | 402.29 | 420.27 |
| Days of sales outstanding (DSO) | days | 82.02 | 82.57 | 100.73 | 96.04 | 115.41 | 114.82 | 118.32 | 107.83 | 112.09 | 92.10 | 109.47 | 71.57 | 53.67 | 76.44 | 107.27 | 97.72 | 93.13 | 66.88 | 84.61 | 101.42 |
| Number of days of payables | days | 29.39 | 33.73 | 30.16 | 53.03 | 72.13 | 54.89 | 42.48 | 43.26 | 55.66 | 146.53 | 100.68 | 266.68 | 106.17 | 90.12 | 54.86 | 48.89 | 33.33 | 143.65 | 172.09 | 271.55 |
TransMedics Group Inc's activity ratios indicate varying efficiency levels in managing its inventory, receivables, and payables over the past few quarters.
Days of inventory on hand (DOH) have shown a decreasing trend from a high of 595.80 days in Q2 2022 to 116.71 days in the most recent quarter, Sep 30, 2024. This suggests the company has been managing its inventory more efficiently, potentially reducing carrying costs and the risk of obsolete inventory.
Days of sales outstanding (DSO) have fluctuated but are relatively stable, ranging from a low of 53.67 days in Q4 2021 to a high of 115.41 days in Q3 2023. The current DSO of 82.02 days as of Sep 30, 2024, indicates that the company takes an average of 82 days to collect revenue from its sales, but improvements could still be made to shorten this collection period.
In terms of payables, the number of days of payables has shown significant fluctuations, with a high of 271.55 days in Q2 2022 and a low of 29.39 days in the most recent quarter. This indicates inconsistent payment practices, which may result in strained supplier relationships or missed opportunities for early payment discounts.
Overall, while TransMedics has made progress in managing its inventory more effectively, there is room for improvement in both receivables and payables management to enhance overall operational efficiency and cash flow management.
Long-term
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Fixed asset turnover | 1.48 | 1.57 | 1.38 | 1.39 | 1.46 | 7.57 | 6.22 | 4.86 | 3.88 | 3.18 | 3.25 | 3.08 | 5.57 | 6.04 | 5.32 | 5.39 | 5.13 | 5.49 | 5.61 | 4.93 |
| Total asset turnover | 0.51 | 0.47 | 0.41 | 0.34 | 0.28 | 0.22 | 0.41 | 0.34 | 0.26 | 0.44 | 0.32 | 0.22 | 0.22 | 0.21 | 0.17 | 0.17 | 0.15 | 0.15 | 0.27 | 0.22 |
TransMedics Group Inc's long-term activity ratios indicate the efficiency of the company in managing its assets to generate sales over a specific period. The fixed asset turnover ratio has shown some fluctuations over the periods, ranging from 1.38 to 7.57. This ratio demonstrates how well the company utilizes its fixed assets to generate revenue, with a higher ratio generally being favorable as it signifies more efficient asset utilization. TransMedics Group Inc's fixed asset turnover has generally been within a reasonable range, indicating reasonable efficiency in generating sales from its fixed assets.
On the other hand, the total asset turnover ratio has also fluctuated, ranging from 0.15 to 0.51. This ratio reflects the efficiency of the company in utilizing all its assets to generate sales. A higher total asset turnover ratio suggests better efficiency in generating sales from all company assets. TransMedics Group Inc's total asset turnover has varied over the periods, with some periods showing better asset utilization than others.
In conclusion, while both fixed asset turnover and total asset turnover ratios have shown fluctuations over the periods, TransMedics Group Inc has generally demonstrated reasonable efficiency in utilizing its assets to generate sales. Further analysis may be required to assess trends and identify any potential areas for improvement in asset utilization.