TransMedics Group Inc (TMDX)

Debt-to-assets ratio

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Long-term debt	US$ in thousands	506,204	58,696	35,197	34,657	34,146
Total assets	US$ in thousands	706,047	277,147	134,893	152,026	105,299
Debt-to-assets ratio		0.72	0.21	0.26	0.23	0.32

December 31, 2023 calculation

Debt-to-assets ratio = Long-term debt ÷ Total assets
= $506,204K ÷ $706,047K
= 0.72

The debt-to-assets ratio of TransMedics Group Inc has shown fluctuations over the past five years. In 2023, the ratio stands at 0.72, indicating that 72% of the company's total assets are financed through debt. This represents a significant increase from the previous year, where the ratio was 0.21.

The relatively high debt-to-assets ratio in 2023 suggests that TransMedics Group Inc relies heavily on debt to finance its operations and investments. This could pose financial risk, as high levels of debt may lead to increased interest expenses and financial vulnerability, especially in cases of economic downturns or interest rate hikes.

The trend over the past five years shows fluctuations in the debt-to-assets ratio, with 2023 exhibiting the highest ratio compared to the preceding years. This suggests a potential shift in the company's capital structure towards more debt financing. Investors and stakeholders may need to monitor this trend closely to assess the company's financial health and risk profile.