TransMedics Group Inc (TMDX)
Return on equity (ROE)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | -25,028 | -36,231 | -44,215 | -28,748 | -33,547 |
| Total stockholders’ equity | US$ in thousands | 137,202 | 187,375 | 67,854 | 103,891 | 54,649 |
| ROE | -18.24% | -19.34% | -65.16% | -27.67% | -61.39% |
December 31, 2023 calculation
ROE = Net income ÷ Total stockholders’ equity
= $-25,028K ÷ $137,202K
= -18.24%
TransMedics Group Inc has demonstrated a concerning trend in its return on equity (ROE) over the past five years. The ROE has been consistently negative, with the most recent ROE of -18.24% in 2023 showing a slight improvement compared to previous years. The negative ROE indicates that the company is not generating sufficient profits relative to the shareholders' equity invested in the business.
The declining trend in ROE from 2019 to 2023 raises red flags about the company's profitability and efficiency in utilizing shareholder equity to generate returns. Investors and stakeholders may be concerned about the company's ability to generate sustainable returns and create value for shareholders. It is essential for TransMedics Group Inc to address the underlying reasons for the negative ROE trend and implement strategies to improve profitability and efficiency in order to enhance shareholder value in the future.
Peer comparison
Dec 31, 2023