TransMedics Group Inc (TMDX)
Return on equity (ROE)
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Net income (ttm) | US$ in thousands | 32,638 | 3,000 | -10,195 | -25,028 | -35,779 | -17,783 | -28,305 | -36,231 | -42,179 | -47,715 | -46,860 | -44,215 | -37,858 | -29,984 | -27,813 | -28,748 | -31,614 | -34,806 | -35,504 | -33,547 |
| Total stockholders’ equity | US$ in thousands | 209,920 | 189,894 | 159,471 | 137,202 | 126,460 | 145,213 | 192,625 | 187,375 | 187,857 | 50,919 | 59,910 | 67,854 | 78,549 | 88,983 | 97,675 | 103,891 | 109,550 | 113,760 | 46,683 | 54,649 |
| ROE | 15.55% | 1.58% | -6.39% | -18.24% | -28.29% | -12.25% | -14.69% | -19.34% | -22.45% | -93.71% | -78.22% | -65.16% | -48.20% | -33.70% | -28.48% | -27.67% | -28.86% | -30.60% | -76.05% | -61.39% |
September 30, 2024 calculation
ROE = Net income (ttm) ÷ Total stockholders’ equity
= $32,638K ÷ $209,920K
= 15.55%
TransMedics Group Inc has experienced fluctuations in its return on equity (ROE) over the historical period provided. ROE is a measure of how effectively the company is utilizing shareholders' equity to generate profits.
In the most recent quarter, ending September 30, 2024, the ROE stood at 15.55%, which indicates that the company generated a return of 15.55% on each dollar of equity. This is a significant improvement compared to the previous quarter, where the ROE was only 1.58%. The positive ROE in the latest period suggests that the company's profitability and efficiency in utilizing equity have improved.
However, looking further back, ROE has been negative for several quarters, indicating that the company was not effectively generating profits relative to the equity invested during those periods. The lowest ROE was recorded in the quarter ending June 30, 2022 at -93.71%, which signifies significant losses in comparison to the equity base.
The negative trend in ROE over multiple periods could raise concerns about the company's financial health and operational efficiency. It is essential for TransMedics Group Inc to focus on improving its profitability and operational performance to enhance its ROE and create sustainable value for its shareholders.
Peer comparison
Sep 30, 2024