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.