TransMedics Group Inc (TMDX)

Gross profit margin

Sep 30, 2024 Jun 30, 2024 Mar 31, 2024 Dec 31, 2023 Sep 30, 2023 Jun 30, 2023 Mar 31, 2023 Dec 31, 2022 Sep 30, 2022 Jun 30, 2022 Mar 31, 2022 Dec 31, 2021 Sep 30, 2021 Jun 30, 2021 Mar 31, 2021 Dec 31, 2020 Sep 30, 2020 Jun 30, 2020 Mar 31, 2020 Dec 31, 2019
Gross profit (ttm) US$ in thousands 237,992 217,809 185,289 154,093 126,872 104,325 81,934 65,272 51,555 37,213 28,452 21,159 19,001 20,266 16,586 16,635 15,548 14,726 16,150 13,863
Revenue (ttm) US$ in thousands 401,090 358,759 296,919 241,623 191,824 151,077 119,133 93,459 71,752 51,439 39,089 30,262 28,221 29,942 25,162 25,639 24,069 24,183 26,458 23,604
Gross profit margin 59.34% 60.71% 62.40% 63.77% 66.14% 69.05% 68.78% 69.84% 71.85% 72.34% 72.79% 69.92% 67.33% 67.68% 65.92% 64.88% 64.60% 60.89% 61.04% 58.73%

September 30, 2024 calculation

Gross profit margin = Gross profit (ttm) ÷ Revenue (ttm)
= $237,992K ÷ $401,090K
= 59.34%

The gross profit margin of TransMedics Group Inc has shown a gradual decline over the past several quarters, starting at 58.73% in December 2019 and reaching its peak at 72.79% in March 2022. However, since then, the trend has been reversing, with the margin decreasing to 59.34% in September 2024. This indicates that the company's profitability from its core operations has been eroding.

A declining gross profit margin may suggest that the company is facing challenges in maintaining its cost efficiency in producing goods or services. It could also indicate pricing pressures or an increase in the cost of goods sold, impacting the company's profitability. TransMedics Group Inc should closely analyze its cost structure, pricing strategies, and operational efficiency to address these declining margins and ensure sustainable profitability in the future.