TransMedics Group Inc (TMDX)

Financial leverage ratio

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Total assets	US$ in thousands	804,076	706,047	277,147	134,893	152,026
Total stockholders’ equity	US$ in thousands	228,603	137,202	187,375	67,854	103,891
Financial leverage ratio		3.52	5.15	1.48	1.99	1.46

December 31, 2024 calculation

Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $804,076K ÷ $228,603K
= 3.52

The financial leverage ratio of TransMedics Group Inc has shown significant fluctuations over the past five years. Starting at 1.46 in December 2020, the ratio increased to 1.99 by December 2021, indicating a higher level of financial leverage. However, by December 2022, the ratio dropped back to 1.48, suggesting a decrease in leverage.

The ratio then experienced a sharp increase to 5.15 by December 2023, which is a significant spike in financial leverage. This sudden jump could indicate a substantial increase in debt relative to equity during that period. Subsequently, by December 2024, the ratio decreased to 3.52, though still at a relatively high level compared to the initial years.

Overall, the fluctuating trend in the financial leverage ratio of TransMedics Group Inc suggests varying levels of debt utilization and equity investment over the years, possibly pointing to changes in the company's capital structure and financial risk profile.