TransMedics Group Inc (TMDX)

Cash conversion cycle

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Days of inventory on hand (DOH)	days	94.69	184.46	266.82	595.80	483.77
Days of sales outstanding (DSO)	days	—	—	—	—	—
Number of days of payables	days	—	—	—	—	—
Cash conversion cycle	days	94.69	184.46	266.82	595.80	483.77

December 31, 2024 calculation

Cash conversion cycle = DOH + DSO – Number of days of payables
= 94.69 + — – —
= 94.69

The cash conversion cycle of TransMedics Group Inc has shown fluctuating trends over the past five years. As of December 31, 2020, the company's cash conversion cycle stood at 483.77 days, indicating a relatively long period between the company's cash outflows for operating activities and the inflows from sales.

By December 31, 2021, the cash conversion cycle extended to 595.80 days, reflecting a further elongation in the conversion cycle. This suggests potential inefficiencies in converting the company's investments in inventory and receivables back into cash.

However, there was a significant improvement in efficiency by December 31, 2022, as the cash conversion cycle decreased dramatically to 266.82 days. This reduction could be attributed to more streamlined operations or improved working capital management practices.

The trend continued positively into December 31, 2023, with a further decrease in the cash conversion cycle to 184.46 days, indicating the company's ability to enhance its liquidity position and operational effectiveness.

As of the most recent data available on December 31, 2024, TransMedics Group Inc's cash conversion cycle stands at 94.69 days, signaling a notable enhancement in the company's overall cash management efficiency compared to the previous years.

In conclusion, the analysis of TransMedics Group Inc's cash conversion cycle demonstrates a fluctuating yet improving trend over the years, suggesting potential enhancements in working capital management strategies and operational efficiencies within the company.