TransMedics Group Inc (TMDX)

Quick ratio

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Cash	US$ in thousands	394,812	201,182	25,580	24,581	20,092
Short-term investments	US$ in thousands	—	—	66,920	101,019	60,608
Receivables	US$ in thousands	63,576	27,611	5,934	6,864	6,559
Total current liabilities	US$ in thousands	54,934	23,661	23,238	11,879	16,115
Quick ratio		8.34	9.67	4.24	11.15	5.41

December 31, 2023 calculation

Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($394,812K + $—K + $63,576K) ÷ $54,934K
= 8.34

The quick ratio of TransMedics Group Inc has fluctuated over the past five years. It was 8.34 as of December 31, 2023, which indicates the company's ability to meet its short-term obligations using its most liquid assets. This ratio has decreased compared to the previous year, where it was 9.67 as of December 31, 2022. Despite the decrease, the current quick ratio remains at a relatively high level, suggesting that the company still has a strong ability to cover its short-term liabilities with its quick assets.

Looking back at previous years, the quick ratio was 4.24 as of December 31, 2021, 11.15 as of December 31, 2020, and 5.41 as of December 31, 2019. The significant variation in the quick ratio over these years may indicate fluctuations in the company's liquidity position and its ability to swiftly cover its short-term obligations.

Overall, while the recent decrease in the quick ratio may raise some concerns about liquidity management, TransMedics Group Inc has historically maintained a strong ability to meet its short-term obligations using its quick assets. Additional analysis of the company's financial health and liquidity position would provide more insights into its overall financial stability.