TransMedics Group Inc (TMDX)

Current ratio

		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
Total current assets	US$ in thousands	497,216	492,475	509,265	488,306	510,654	536,724	662,655	261,730	252,294	250,586	95,113	105,795	118,705	125,577	135,052	140,543	146,766	154,126	158,227	91,704
Total current liabilities	US$ in thousands	59,913	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
Current ratio		8.30	8.20	9.37	9.72	9.30	10.93	20.70	9.14	10.66	12.11	4.18	5.22	5.11	7.89	8.96	11.95	12.36	11.31	11.45	6.10

December 31, 2024 calculation

Current ratio = Total current assets ÷ Total current liabilities
= $497,216K ÷ $59,913K
= 8.30

TransMedics Group Inc's current ratio has displayed fluctuations over the period under review. The ratio stood at a healthy 6.10 as of March 31, 2020, indicating the company's ability to cover its short-term liabilities with its current assets. The ratio then showed a significant increase, reaching 11.45 by June 30, 2020, and remained relatively high in the subsequent periods, ranging from 11.31 to 12.36 by December 31, 2020.

However, towards the middle of 2021, the current ratio started to decline, dropping to 8.96 by June 30, 2021, and further decreasing to 5.11 by December 31, 2021. The ratio continued to decrease in the following quarters, hitting a low of 4.18 by June 30, 2022. This downward trend was a cause for concern as it indicated potential liquidity issues.

There was a notable improvement in the current ratio in the third quarter of 2022, jumping to 12.11, suggesting a better ability to cover short-term obligations with current assets. The ratio maintained a relatively strong position through the end of 2023, with values ranging from 9.14 to 9.72.

By the end of the review period on December 31, 2024, the current ratio stood at 8.30. Overall, while there were fluctuations in the current ratio over the years, TransMedics Group Inc generally demonstrated a solid ability to meet its short-term financial obligations during most periods, although there were instances of lower ratios that may have raised liquidity concerns.