TransMedics Group Inc (TMDX)

Fixed asset turnover

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Revenue	US$ in thousands	441,540	241,623	93,459	30,262	25,639
Property, plant and equipment	US$ in thousands	—	—	24,353	15,688	4,754
Fixed asset turnover		—	—	3.84	1.93	5.39

December 31, 2024 calculation

Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $441,540K ÷ $—K
= —

TransMedics Group Inc's fixed asset turnover ratio provides insights into how efficiently the company is utilizing its fixed assets to generate revenue. The trend analysis reveals fluctuations in this ratio over the years:

- In December 31, 2020, the fixed asset turnover ratio was 5.39, indicating that the company generated $5.39 in revenue for every dollar invested in fixed assets. This suggests efficient utilization of fixed assets to generate sales.

- By December 31, 2021, the fixed asset turnover ratio decreased to 1.93, signaling a decline in the efficiency of asset utilization. This could be due to a decrease in sales relative to the investments in fixed assets.

- The ratio improved in December 31, 2022, reaching 3.84, showcasing a better efficiency in utilizing fixed assets to generate revenue compared to the previous year.

- No data is available for December 31, 2023, and December 31, 2024, making it difficult to assess the trend for these years.

Analyzing the fixed asset turnover ratio can help management identify areas where the company may be underperforming in utilizing its fixed assets effectively. Further investigation into the reasons behind these fluctuations is recommended to ensure optimal asset utilization and potentially improve financial performance.