TransMedics Group Inc (TMDX)

Cash conversion cycle

		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
Days of inventory on hand (DOH)	days	116.71	126.04	158.72	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	420.27
Days of sales outstanding (DSO)	days	82.02	82.57	100.73	96.04	115.41	114.82	118.32	107.83	112.09	92.10	109.47	71.57	53.67	76.44	107.27	97.72	93.13	66.88	84.61	101.42
Number of days of payables	days	29.39	33.73	30.16	53.03	72.13	54.89	42.48	43.26	55.66	146.53	100.68	266.68	106.17	90.12	54.86	48.89	33.33	143.65	172.09	271.55
Cash conversion cycle	days	169.34	174.87	229.28	227.47	264.49	298.39	310.96	331.39	392.12	393.75	582.32	400.69	536.13	476.98	555.48	532.60	615.97	407.79	314.80	250.15

September 30, 2024 calculation

Cash conversion cycle = DOH + DSO – Number of days of payables
= 116.71 + 82.02 – 29.39
= 169.34

TransMedics Group Inc's cash conversion cycle has shown fluctuations over the past years, ranging from as low as 169.34 days to as high as 582.32 days. The cash conversion cycle represents the time it takes for the company to convert its investments in inventory and other resources into cash inflows from sales.

A lower cash conversion cycle is generally favorable as it indicates that the company is able to efficiently manage its working capital and convert its resources into cash quickly. On the other hand, a higher cash conversion cycle may suggest inefficiencies or challenges in the management of inventory, receivables, and payables.

TransMedics' cash conversion cycle has shown some volatility, which could be attributed to various factors such as changes in sales volume, inventory management practices, and payment terms with suppliers and customers. It is important for the company to closely monitor and optimize its cash conversion cycle to improve liquidity, profitability, and overall financial performance.