TransMedics Group Inc (TMDX)

Cash ratio

		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
Cash and cash equivalents	US$ in thousands	330,094	362,751	350,217	394,812	427,110	582,210	195,375	201,182	204,462	30,386	17,897	25,580	22,495	25,314	26,727	24,581	21,397	51,152	24,738	20,092
Short-term investments	US$ in thousands	—	—	—	—	—	—	—	—	38	27,714	54,103	66,920	80,405	86,886	91,373	101,019	111,303	88,248	47,862	60,608
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
Cash ratio		5.50	6.68	6.97	7.19	8.70	18.18	6.82	8.50	9.88	2.55	3.55	3.98	6.46	7.44	10.05	10.57	9.74	10.09	4.83	5.01

September 30, 2024 calculation

Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($330,094K + $—K) ÷ $60,048K
= 5.50

The cash ratio of TransMedics Group Inc has shown volatility over the past few quarters, ranging from a low of 2.55 to a high of 18.18. The cash ratio measures the company's ability to cover its short-term liabilities with its cash and cash equivalents. A higher cash ratio indicates a stronger ability to meet short-term obligations without relying on external financing.

It is noteworthy that the cash ratio significantly increased in the June 2023 quarter, reaching a peak of 18.18, which suggests a robust liquidity position at that time. However, this ratio declined in subsequent quarters but remained above 5, indicating a continued ability to cover short-term obligations comfortably.

The cash ratio exceeding 1 indicates that the company has more cash and cash equivalents than its current liabilities, which is generally considered a positive indicator of financial health. It is essential to monitor the trend of the cash ratio over time to assess the company's liquidity management and ensure it maintains a healthy cash position to meet its short-term obligations.