TransMedics Group Inc (TMDX)

Debt-to-capital 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 stockholders’ equity	US$ in thousands	137,202	187,375	67,854	103,891	54,649
Debt-to-capital ratio		0.79	0.24	0.34	0.25	0.38

December 31, 2023 calculation

Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $506,204K ÷ ($506,204K + $137,202K)
= 0.79

The debt-to-capital ratio of TransMedics Group Inc has fluctuated significantly over the past five years. The ratio was 0.79 at the end of 2023, indicating that debt accounted for approximately 79% of the company's capital structure for that year. This represents a significant increase from the previous year when the ratio was 0.24, suggesting that the company took on a substantial amount of debt relative to its total capital in 2023.

Comparing to 2021 and 2020, where the debt-to-capital ratios were 0.34 and 0.25 respectively, the recent increase in the ratio signifies a more leveraged position in 2023. However, it is worth noting that the ratio is still lower than the 2019 level of 0.38, indicating a potentially improved capital structure compared to five years ago.

This trend in the debt-to-capital ratio suggests that TransMedics Group Inc has been actively managing its debt levels in recent years, possibly using debt as a strategic tool to finance growth or operations. Further analysis of the company's financial health and overall debt management strategies would provide more insights into the implications of these fluctuations in the debt-to-capital ratio.