TransMedics Group Inc (TMDX)

Receivables 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
Revenue (ttm)	US$ in thousands	401,090	358,759	296,919	241,623	191,824	151,077	119,133	93,459	71,752	51,439	39,089	30,262	28,221	29,942	25,162	25,639	24,069	24,183	26,458	23,604
Receivables	US$ in thousands	90,128	81,158	81,942	63,576	60,654	47,524	38,620	27,611	22,035	12,979	11,724	5,934	4,150	6,271	7,395	6,864	6,141	4,431	6,133	6,559
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

September 30, 2024 calculation

Receivables turnover = Revenue (ttm) ÷ Receivables
= $401,090K ÷ $90,128K
= 4.45

The analysis of TransMedics Group Inc's receivables turnover over the past few quarters reveals fluctuating but generally stable performance. The receivables turnover ratio measures how efficiently the company is collecting outstanding receivables from its customers.

The trend shows that the receivables turnover ratio has ranged from 3.08 to 6.80 over the past eight quarters. The ratio was relatively low in March 2023 at 3.08 but improved significantly to 6.80 by June 2022. This suggests a more efficient collection of receivables during that period.

Overall, the average receivables turnover ratio for the company during this period is around 4, indicating that the company collects its outstanding receivables approximately 4 times a year. It is essential to monitor this ratio over time to ensure consistent and timely collection of payments from customers, as a declining ratio can indicate potential issues with credit policies or liquidity management.