TransMedics Group Inc (TMDX)
Profitability ratios
Return on sales
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Gross profit margin | 63.77% | 69.84% | 69.92% | 64.88% | 58.73% |
| Operating profit margin | -11.89% | -33.64% | -130.29% | -102.91% | -125.42% |
| Pretax margin | -11.06% | -38.59% | -195.89% | -112.13% | -142.12% |
| Net profit margin | -10.36% | -38.77% | -146.11% | -112.13% | -142.12% |
TransMedics Group Inc's profitability ratios have shown fluctuations over the past five years. The gross profit margin, which indicates the percentage of revenue retained after production costs, has ranged from 58.73% in 2019 to 69.92% in 2021, with a slight decrease to 63.77% in 2023.
In contrast, the operating profit margin, a measure of operating efficiency, has been negative over the period, ranging from -33.64% in 2022 to -130.29% in 2021. This trend indicates that the company's operating expenses have exceeded gross profit consistently.
Furthermore, the pretax margin, reflecting the proportion of income before taxes, has also shown negative values, with the most significant decline recorded at -195.89% in 2021. The net profit margin, which represents the percentage of revenue remaining after all expenses, has followed a similar trend, with negative values ranging from -10.36% in 2023 to -142.12% in 2019.
Overall, the company's profitability has been impacted by high operating costs and expenses relative to its revenue, leading to negative margins in recent years. TransMedics Group Inc may need to focus on cost optimization and revenue generation strategies to improve its profitability in the future.
Return on investment
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | -4.07% | -11.34% | -29.23% | -17.35% | -28.11% |
| Return on assets (ROA) | -3.54% | -13.07% | -32.78% | -18.91% | -31.86% |
| Return on total capital | -2.48% | -12.78% | -38.26% | -17.87% | -32.88% |
| Return on equity (ROE) | -18.24% | -19.34% | -65.16% | -27.67% | -61.39% |
TransMedics Group Inc's profitability ratios indicate a fluctuating performance over the past five years. The Operating return on assets (Operating ROA) has shown improvement from -29.23% in 2021 to -4.07% in 2023, but remains negative. This suggests that the company is generating operating income at a rate of -4.07% relative to its total assets in 2023.
The Return on assets (ROA) has also improved from -32.78% in 2021 to -3.54% in 2023, indicating that the company's overall profitability in generating net income relative to its total assets has seen a positive trend. However, it still remains negative in 2023.
Return on total capital has shown a similar trend, improving from -38.26% in 2021 to -2.48% in 2023. This ratio indicates how efficiently the company is generating profits from its total capital invested, including debt and equity.
Return on equity (ROE) has seen fluctuations over the years, with a significant improvement from -65.16% in 2021 to -18.24% in 2023. While this shows positive momentum, the negative values indicate that the company is not effectively utilizing shareholder equity to generate profits.
Overall, the company's profitability ratios reflect an inconsistent performance, with some signs of improvement in recent years but still remaining in negative territory. This indicates that TransMedics Group Inc may need to focus on optimizing its asset utilization and operational efficiency to enhance its overall profitability in the future.