TransMedics Group Inc (TMDX)

Working capital turnover

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Revenue	US$ in thousands	241,623	93,459	30,262	25,639	23,604
Total current assets	US$ in thousands	510,654	252,294	118,705	146,766	100,001
Total current liabilities	US$ in thousands	54,934	23,661	23,238	11,879	16,115
Working capital turnover		0.53	0.41	0.32	0.19	0.28

December 31, 2023 calculation

Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $241,623K ÷ ($510,654K – $54,934K)
= 0.53

TransMedics Group Inc's working capital turnover has shown a fluctuating trend over the past five years. The ratio has increased from 0.28 in 2019 to 0.53 in 2023, indicating a positive improvement in the efficiency of using working capital to generate sales. A higher working capital turnover ratio suggests that the company is effectively utilizing its working capital to support its operations and generate revenue. This improvement may be attributed to better inventory management, efficient receivables collection, or effective payables management. Overall, the increasing trend in the working capital turnover ratio signifies an enhancement in TransMedics Group Inc's operational efficiency and financial performance.