TransMedics Group Inc (TMDX)

Return on total capital

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Earnings before interest and tax (EBIT)	US$ in thousands	-15,937	-31,437	-39,428	-24,763	-29,194
Long-term debt	US$ in thousands	506,204	58,696	35,197	34,657	34,146
Total stockholders’ equity	US$ in thousands	137,202	187,375	67,854	103,891	54,649
Return on total capital		-2.48%	-12.78%	-38.26%	-17.87%	-32.88%

December 31, 2023 calculation

Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $-15,937K ÷ ($506,204K + $137,202K)
= -2.48%

TransMedics Group Inc's return on total capital has exhibited fluctuations over the past five years. The return on total capital was -2.48% as of December 31, 2023, an improvement compared to the previous year's -12.78%. However, the company's return on total capital has been negative in recent years, indicating that TransMedics Group Inc has struggled to generate sufficient returns on its total capital investment. The significant negative returns in 2021 and 2019, at -38.26% and -32.88% respectively, raise concerns about the company's ability to effectively utilize its capital to generate profits. It is important for TransMedics Group Inc to focus on enhancing its operational efficiency and profitability to improve its return on total capital in the future.