TransMedics Group Inc (TMDX)
Solvency ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-equity ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Financial leverage ratio | 3.52 | 5.15 | 1.48 | 1.99 | 1.46 |
Based on the provided data, TransMedics Group Inc has consistently maintained a very healthy solvency position over the years, with all debt-related ratios indicating either very low or zero levels of debt relative to its assets, capital, and equity.
The Debt-to-assets ratio, Debt-to-capital ratio, and Debt-to-equity ratio have all remained at 0.00 throughout the years, indicating that the company operates with zero debt compared to its assets, capital, and equity, respectively.
However, the Financial leverage ratio has exhibited some variability over the years, ranging from 1.46 in 2020 to a peak of 5.15 in 2023 and then decreasing to 3.52 in 2024. This indicates that the company's financial leverage has fluctuated, with a significant increase in leverage in 2023 followed by a moderation in 2024.
Overall, the consistently low debt levels and stable debt ratios of TransMedics Group Inc suggest that the company has a strong financial position and is not heavily reliant on debt to fund its operations and growth. The fluctuation in the Financial leverage ratio may warrant further investigation to understand the factors driving the changes in leverage over the years.
Coverage ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Interest coverage | 3.48 | -1.46 | -8.90 | -10.62 | -6.21 |
The interest coverage ratio for TransMedics Group Inc has shown significant fluctuations over the years based on the provided data. The negative values for the years 2020, 2021, 2022, and 2023 indicate that the company's earnings before interest and taxes (EBIT) were insufficient to cover its interest expenses during those periods. This raises concerns about the company's ability to meet its interest obligations using its operating income.
However, there was a notable improvement in the interest coverage ratio in the year ending December 31, 2024, with a positive value of 3.48. This suggests that TransMedics Group Inc's EBIT was more than sufficient to cover its interest expenses in that particular year, indicating a stronger financial position.
Overall, the company's interest coverage has been erratic, with multiple years of insufficient coverage followed by a rebound in the most recent year. It is essential for investors and stakeholders to monitor this ratio closely to assess the company's ability to meet its debt obligations in the future.