TransMedics Group Inc (TMDX)

Quick ratio

Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Cash US$ in thousands 336,650 394,812 201,182 25,580 24,581
Short-term investments US$ in thousands 0 66,872 101,061
Receivables US$ in thousands
Total current liabilities US$ in thousands 59,913 54,934 23,661 23,238 11,879
Quick ratio 5.62 7.19 8.50 3.98 10.58

December 31, 2024 calculation

Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($336,650K + $—K + $—K) ÷ $59,913K
= 5.62

The quick ratio of TransMedics Group Inc has shown fluctuations over the years. As of December 31, 2020, the quick ratio was 10.58, indicating a very high level of liquidity, with current assets significantly exceeding current liabilities. However, by December 31, 2021, the quick ratio decreased to 3.98, suggesting a reduction in liquidity but still demonstrating the company's ability to cover immediate liabilities with its quick assets.

In the subsequent years up to December 31, 2024, the quick ratio fluctuated within a range, showing values of 8.50, 7.19, and 5.62 respectively. These ratios, while lower than the initial ratio in 2020, still indicate a relatively healthy liquidity position for TransMedics Group Inc, with sufficient quick assets to meet short-term obligations.

It is important to note that a quick ratio above 1 generally indicates that a company can cover its current liabilities with its most liquid assets, such as cash and marketable securities, highlighting a strong financial position in terms of liquidity. The decreasing trend in the quick ratio over the years suggests potential changes in the company's liquidity management strategies or operating environment.