TransMedics Group Inc (TMDX)
Return on equity (ROE)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 35,464 | -25,028 | -36,231 | -44,215 | -28,748 |
| Total stockholders’ equity | US$ in thousands | 228,603 | 137,202 | 187,375 | 67,854 | 103,891 |
| ROE | 15.51% | -18.24% | -19.34% | -65.16% | -27.67% |
December 31, 2024 calculation
ROE = Net income ÷ Total stockholders’ equity
= $35,464K ÷ $228,603K
= 15.51%
TransMedics Group Inc's return on equity (ROE) has shown a fluctuating trend over the years as per the provided data. The ROE was negative in the years 2020, 2021, 2022, and 2023, indicating that the company was not effectively utilizing its shareholder equity to generate profit during those periods.
However, there was a significant improvement in the ROE in the year ending December 31, 2024, where it stood at 15.51%. This positive ROE implies that the company was able to generate a profit using the shareholders' equity investment, suggesting increased efficiency in the utilization of the equity.
Overall, the negative trend in ROE from 2020 to 2023 may raise concerns about the company's profitability and effectiveness in utilizing shareholders' equity. The positive turnaround in 2024 is a positive sign, indicating potential improvements in the company's financial performance and efficiency in generating returns for its shareholders. It would be essential for stakeholders to monitor future ROE trends to assess the company's financial health and profitability sustainability.
Peer comparison
Dec 31, 2024