TransMedics Group Inc (TMDX)
Cash ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 336,650 | 394,812 | 201,182 | 25,580 | 24,581 |
| Short-term investments | US$ in thousands | — | — | 0 | 66,872 | 101,061 |
| Total current liabilities | US$ in thousands | 59,913 | 54,934 | 23,661 | 23,238 | 11,879 |
| Cash ratio | 5.62 | 7.19 | 8.50 | 3.98 | 10.58 |
December 31, 2024 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($336,650K
+ $—K)
÷ $59,913K
= 5.62
The cash ratio for TransMedics Group Inc has shown a fluctuating trend over the past five years. As of December 31, 2020, the cash ratio stood at 10.58, indicating that the company had a strong ability to cover its short-term liabilities solely with cash and cash equivalents. However, by December 31, 2021, the cash ratio decreased to 3.98, suggesting a decline in the company's liquidity position.
Subsequently, the cash ratio improved to 8.50 by December 31, 2022, reflecting a possible increase in cash reserves relative to short-term obligations. By the end of December 31, 2023, the cash ratio declined to 7.19, indicating a slight decrease in liquidity compared to the previous year.
As of December 31, 2024, the cash ratio further decreased to 5.62, signaling a potential decrease in the company's ability to meet short-term obligations with available cash. Overall, while the company has maintained a generally healthy cash ratio throughout the years, the fluctuating trend suggests the need for continuous monitoring of liquidity management to ensure adequate cash reserves to meet short-term demands.
Peer comparison
Dec 31, 2024