TransMedics Group Inc (TMDX)

Working capital 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
Total current assets	US$ in thousands	492,475	509,265	488,306	510,654	536,724	662,655	261,730	252,294	250,586	95,113	105,795	118,705	125,577	135,052	140,543	146,766	154,126	158,227	91,704	100,001
Total current liabilities	US$ in thousands	60,048	54,329	50,223	54,934	49,101	32,017	28,635	23,661	20,689	22,741	20,256	23,238	15,923	15,079	11,757	11,879	13,624	13,818	15,039	16,115
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

September 30, 2024 calculation

Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $401,090K ÷ ($492,475K – $60,048K)
= 0.93

TransMedics Group Inc's working capital turnover ratio has shown fluctuations over the past eight quarters, ranging from 0.17 to 0.93. The working capital turnover indicates how efficiently the company is utilizing its working capital to generate sales revenue. A higher ratio suggests that the company is effectively managing its working capital to support its operations and generate sales.

The trend in TransMedics Group Inc's working capital turnover ratio shows improvement over recent quarters, with a notable increase from 0.39 in December 2023 to 0.93 in September 2024. This indicates that the company has been able to more efficiently convert its working capital into sales revenue during this period.

However, it is important to note that the ratio fluctuated significantly in the past eight quarters, with some periods showing lower efficiency in working capital utilization. For example, the ratio dropped to 0.17 in March 2021 and then gradually improved before reaching its highest point in September 2024.

Overall, the trend in TransMedics Group Inc's working capital turnover ratio suggests a recent improvement in working capital management efficiency, but the company should continue monitoring this ratio to ensure consistent and optimal utilization of working capital resources.