TransMedics Group Inc (TMDX)

Pretax 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
Earnings before tax but after interest (EBT) (ttm)	US$ in thousands	34,137	2,963	-10,170	-25,188	-37,135	-17,613	-28,134	-36,065	-57,215	-62,761	-61,922	-59,279	-37,861	-29,990	-27,819	-28,748	-31,622	-34,810	-35,504	-33,547
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
Pretax margin		8.51%	0.83%	-3.43%	-10.42%	-19.36%	-11.66%	-23.62%	-38.59%	-79.74%	-122.01%	-158.41%	-195.89%	-134.16%	-100.16%	-110.56%	-112.13%	-131.38%	-143.94%	-134.19%	-142.12%

September 30, 2024 calculation

Pretax margin = EBT (ttm) ÷ Revenue (ttm)
= $34,137K ÷ $401,090K
= 8.51%

TransMedics Group Inc's pretax margin has shown significant fluctuations over the past few quarters. The pretax margin was positive in the most recent quarter at 8.51%, reflecting the company's ability to generate profits before taxes. However, in the previous quarters, the pretax margin was negative, indicating that the company's expenses exceeded its revenues, leading to operating losses.

The business faced challenges in profitability particularly in the quarters ending in March 2022, December 2021, and September 2021, with pretax margins of -158.41%, -195.89%, and -134.16% respectively. These exceptionally low margins suggest operational inefficiencies or financial difficulties during those periods.

It is essential for TransMedics Group Inc to sustain its positive pretax margin and work towards improving its profitability by managing costs effectively, increasing revenues, and optimizing its operations to ensure long-term financial health and sustainability.