TransMedics Group Inc (TMDX)
Cash conversion cycle
| Dec 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 94.58 | 116.57 | 125.86 | 158.57 | 184.46 | 221.21 | 238.47 | 235.11 | 266.82 | 335.69 | 448.18 | 573.53 | 595.80 | 588.63 | 490.65 | 503.07 | 483.77 | 556.17 | 484.57 | 402.29 |
| Days of sales outstanding (DSO) | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Number of days of payables | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Cash conversion cycle | days | 94.58 | 116.57 | 125.86 | 158.57 | 184.46 | 221.21 | 238.47 | 235.11 | 266.82 | 335.69 | 448.18 | 573.53 | 595.80 | 588.63 | 490.65 | 503.07 | 483.77 | 556.17 | 484.57 | 402.29 |
December 31, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 94.58 + — – —
= 94.58
The cash conversion cycle of TransMedics Group Inc has shown fluctuations over the analyzed period from March 31, 2020, to December 31, 2024. Initially, the company's cash conversion cycle was high, indicating a longer time taken to convert its investments in inventory and other resources into cash inflows. This prolonged cycle could have implications for the company's liquidity and working capital management.
However, there has been a gradual improvement in the cash conversion cycle over time, with a decreasing trend observed from the fourth quarter of 2022 onwards. This reduction indicates that TransMedics has been able to streamline its operations and optimize its inventory and accounts receivable management. A shorter cash conversion cycle generally implies improved efficiency in converting investments into cash, enhancing the company's financial health and potential for generating profits.
It is essential for investors and stakeholders to monitor the cash conversion cycle of TransMedics Group Inc continuously. A sustained decrease or stability in the cycle can indicate effective working capital management and operational efficiency, leading to improved financial performance and overall business sustainability.
Peer comparison
Dec 31, 2024