TransMedics Group Inc (TMDX)
Liquidity ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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 |
| Quick ratio | 5.62 | 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 | 10.58 | 9.74 | 10.09 | 4.82 |
| Cash ratio | 5.62 | 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 | 10.58 | 9.74 | 10.09 | 4.82 |
TransMedics Group Inc's liquidity ratios show positive trends over the years based on the provided data. The current ratio, which measures the company's ability to cover its short-term liabilities with its current assets, has generally remained above 1, indicating a strong liquidity position. The ratio significantly increased from 6.10 in March 2020 to a peak of 20.70 in June 2023 before settling around 9 to 10 in the most recent periods.
The quick ratio, a more stringent measure of liquidity that excludes inventory from current assets, also shows a similar trend of improvement over time. Starting at 4.82 in March 2020, the ratio peaked at 18.18 in June 2023 before stabilizing around 6 to 7 in the latest periods. This indicates that the company has a sufficient level of liquid assets to meet its short-term obligations without relying on inventory.
The cash ratio, which is the most conservative liquidity measure focusing solely on cash and cash equivalents, also exhibits a similar pattern of improvement. Starting at 4.82 in March 2020, the ratio peaked at 18.18 in June 2023 before settling around 6 to 7 in the most recent periods. This suggests that TransMedics Group Inc has a solid cash position relative to its current liabilities.
Overall, the liquidity ratios of TransMedics Group Inc demonstrate a strong ability to meet its short-term financial obligations and indicates a healthy liquidity position that has improved over the years, providing a favorable signal to investors and creditors.
Additional liquidity measure
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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 |
TransMedics Group Inc's cash conversion cycle, a measure of how efficiently the company manages its working capital, has shown fluctuations over the period from March 31, 2020, to December 31, 2024.
The company's cash conversion cycle was initially quite high, peaking at 588.63 days on September 30, 2021, indicating a lengthy period between the company's initial cash outlay for production and the final receipt of cash from sales. However, there has been a noticeable improvement in the cash conversion cycle since then.
As of December 31, 2024, the cash conversion cycle stood at 94.58 days, representing a significant reduction from the peak levels seen earlier. This improvement suggests a more efficient management of the company's cash, inventory, and receivables during the period analyzed.
Overall, the decreasing trend in the cash conversion cycle implies that TransMedics Group Inc has been able to streamline its operations, leading to quicker turnover of its working capital and potentially freeing up cash for investment or other strategic purposes.