TransMedics Group Inc (TMDX)
Liquidity ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Current ratio | 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 | 6.21 |
| Quick ratio | 7.00 | 8.17 | 8.60 | 8.34 | 9.93 | 19.67 | 8.17 | 9.67 | 10.95 | 3.13 | 4.13 | 4.24 | 6.72 | 7.86 | 10.67 | 11.15 | 10.19 | 10.41 | 5.24 | 5.41 |
| 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 |
TransMedics Group Inc has consistently maintained strong liquidity ratios over the past few quarters, as evidenced by its current ratio, quick ratio, and cash ratio. The current ratio, which measures the company's ability to cover its short-term liabilities with its current assets, has been consistently high, ranging from 4.18 to 20.70 over the analyzed periods. This indicates that the company has more than enough current assets to meet its short-term obligations.
Similarly, the quick ratio, which provides a more stringent measure of liquidity by excluding inventory from current assets, has also remained robust, ranging from 3.13 to 19.67. This demonstrates that the company has a strong ability to cover its short-term liabilities without relying on the sale of inventory.
The cash ratio, which is the most conservative liquidity measure as it only considers cash and cash equivalents, has also shown a consistently strong performance, ranging from 2.55 to 18.18. This suggests that the company has a sufficient level of cash to meet its immediate financial obligations without the need to sell other assets.
Overall, TransMedics Group Inc's liquidity ratios indicate a healthy financial position with a strong ability to meet its short-term financial obligations. Investors and creditors may view these ratios positively as they suggest the company's ability to weather potential liquidity challenges and continue operating smoothly.
Additional liquidity measure
| 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 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 |
The cash conversion cycle of TransMedics Group Inc has exhibited fluctuations over the past few quarters, with the cycle ranging from a low of 169.34 days to a high of 615.97 days. A shorter cash conversion cycle indicates that the company is able to convert its investment in inventory into cash more efficiently.
In the most recent quarter, ending September 30, 2024, the cash conversion cycle stood at 169.34 days. This reflects an improvement compared to the previous quarter, where the cycle was 174.87 days. A decrease in the cash conversion cycle suggests that TransMedics Group Inc has managed its inventory, receivables, and payables more effectively, leading to a quicker conversion of these assets into cash.
Analyzing the historical trend, the company experienced a significant increase in its cash conversion cycle in the first quarter of 2022, reaching 582.32 days. This sharp rise may have been a result of inefficiencies in managing inventory levels, collecting receivables, or paying suppliers during that period.
Overall, TransMedics Group Inc should continue to focus on optimizing its cash conversion cycle to ensure effective working capital management and enhance its overall financial performance. Further analysis and improvements in inventory turnover, accounts receivable collection, and accounts payable management could help the company streamline its operations and strengthen its cash flow position.