TransMedics Group Inc (TMDX)
Operating return on assets (Operating ROA)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Operating income | US$ in thousands | -28,727 | -31,437 | -39,428 | -26,384 | -29,603 |
| Total assets | US$ in thousands | 706,047 | 277,147 | 134,893 | 152,026 | 105,299 |
| Operating ROA | -4.07% | -11.34% | -29.23% | -17.35% | -28.11% |
December 31, 2023 calculation
Operating ROA = Operating income ÷ Total assets
= $-28,727K ÷ $706,047K
= -4.07%
TransMedics Group Inc's operating return on assets (ROA) has shown a fluctuating trend over the past five years. The trend indicates that the company has been facing challenges in generating profits from its operations in relation to its assets. This is evident from the negative values of operating ROA reported from 2019 to 2023, with the lowest point recorded in 2021 at -29.23%.
The declining trend in operating ROA suggests that TransMedics Group Inc may be facing operational inefficiencies or encountering difficulties in effectively utilizing its assets to generate operating income. The negative values indicate that the company's operating income is not sufficient to cover its operating costs and generate a positive return on its assets.
Overall, the consistent negative operating ROA indicates that TransMedics Group Inc may need to address its operational challenges and improve its efficiency in utilizing its assets to generate profits in order to enhance its financial performance and sustainability in the long term.
Peer comparison
Dec 31, 2023