TransMedics Group Inc (TMDX)
Profitability ratios
Return on sales
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Gross profit margin | 59.36% | 63.77% | 69.84% | 69.92% | 64.88% |
| Operating profit margin | 8.49% | -11.89% | -33.64% | -130.29% | -102.91% |
| Pretax margin | 8.10% | -11.04% | -38.70% | -145.99% | -112.00% |
| Net profit margin | 8.03% | -10.36% | -38.77% | -146.11% | -112.13% |
TransMedics Group Inc's profitability ratios have shown fluctuations over the years.
1. Gross Profit Margin:
- The gross profit margin has been consistently high, ranging from 59.36% to 69.92%. This indicates efficient cost management and strong pricing strategies, leading to a healthy margin on sales after accounting for the cost of goods sold.
2. Operating Profit Margin:
- TransMedics Group Inc experienced negative operating profit margins in 2020 and 2021, indicating that the company's operating expenses exceeded its gross profits during those years. However, there was a significant improvement in the operating profit margin in the following years, reaching 8.49% in 2024. This suggests better control over operating costs and improved operational efficiency.
3. Pretax Margin:
- The pretax margin also displays the company's ability to manage its operating costs and generate income before taxes. TransMedics Group Inc had negative pretax margins in 2020 and 2021, but this improved in the subsequent years, reaching 8.10% in 2024. This indicates a positive trend towards profitability on a pre-tax basis.
4. Net Profit Margin:
- The net profit margin reflects the company's bottom line profitability after all expenses including taxes. TransMedics Group Inc had negative net profit margins in 2020 and 2021, but the situation improved significantly in the following years, reaching 8.03% in 2024. This indicates the company's ability to turn a profit and generate positive earnings for its shareholders.
In conclusion, TransMedics Group Inc has shown varying levels of profitability over the years, with improvements in operating, pretax, and net profit margins from 2022 onwards. The positive trends in these ratios suggest that the company has made efforts to enhance its operational efficiency and control costs, leading to better profitability in recent years.
Return on investment
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 4.66% | -4.07% | -11.34% | -29.23% | -17.35% |
| Return on assets (ROA) | 4.41% | -3.54% | -13.07% | -32.78% | -18.91% |
| Return on total capital | 21.95% | -11.50% | -17.69% | -60.62% | -23.80% |
| Return on equity (ROE) | 15.51% | -18.24% | -19.34% | -65.16% | -27.67% |
TransMedics Group Inc's profitability ratios have shown a fluctuating trend over the years, indicating varying levels of performance.
- Operating return on assets (Operating ROA) has been negative for the years from 2020 to 2023, with a significant improvement to 4.66% in 2024. This suggests that the company's operating income generated from its assets has been improving.
- Return on assets (ROA) has also been negative from 2020 to 2023, but similarly to the Operating ROA, it turned positive in 2024, reaching 4.41%. This indicates the company's ability to generate profit relative to its total assets.
- Return on total capital was negative for the years 2020, 2021, and 2022, but experienced a significant improvement in 2024 to 21.95%. This ratio reflects the efficiency of the company in generating returns on both equity and debt capital.
- Return on equity (ROE) followed a similar negative trend from 2020 to 2023, with a notable positive turnaround to 15.51% in 2024. ROE indicates the profitability generated for the shareholders' investment.
Overall, the improvement in profitability ratios in the year 2024 suggests a positive turn in TransMedics Group Inc's financial performance, although the negative trends in the preceding years indicate a need for further analysis to understand the underlying factors affecting the company's profitability.