TransMedics Group Inc (TMDX)

Fixed asset turnover

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Revenue	US$ in thousands	241,623	93,459	30,262	25,639	23,604
Property, plant and equipment	US$ in thousands	173,941	19,223	9,841	4,754	4,792
Fixed asset turnover		1.39	4.86	3.08	5.39	4.93

December 31, 2023 calculation

Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $241,623K ÷ $173,941K
= 1.39

TransMedics Group Inc's fixed asset turnover ratio has shown a decreasing trend over the past five years. The ratio was 1.39 in 2023, which indicates that the company generated $1.39 in revenue for every dollar invested in fixed assets during that year. This ratio was significantly lower compared to the ratios of 4.86 in 2022, 3.08 in 2021, 5.39 in 2020, and 4.93 in 2019.

The decline in the fixed asset turnover ratio suggests that TransMedics Group Inc may be becoming less efficient in utilizing its fixed assets to generate sales. It could indicate that the company's fixed assets are not being fully utilized or that there may be inefficiencies in production processes. It is essential for the company to further investigate the reasons behind this declining trend and take necessary steps to improve the efficiency of its fixed asset utilization in order to enhance profitability.