TransMedics Group Inc (TMDX)

Working capital turnover

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Revenue	US$ in thousands	441,540	241,623	93,459	30,262	25,639
Total current assets	US$ in thousands	497,216	510,654	252,294	118,705	146,766
Total current liabilities	US$ in thousands	59,913	54,934	23,661	23,238	11,879
Working capital turnover		1.01	0.53	0.41	0.32	0.19

December 31, 2024 calculation

Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $441,540K ÷ ($497,216K – $59,913K)
= 1.01

TransMedics Group Inc's working capital turnover has shown a positive trend over the past five years, increasing from 0.19 in 2020 to 1.01 in 2024. This indicates that the company is generating more revenue relative to its working capital investment, reflecting an improvement in efficiency in utilizing its working capital to support operations and sales. The significant increase in working capital turnover suggests that TransMedics Group Inc has been more effective in managing its current assets and liabilities to drive sales and business growth. This improved efficiency in working capital management can potentially lead to better cash flow and profitability for the company in the long term.