TransMedics Group Inc (TMDX)

Financial leverage ratio

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Total assets	US$ in thousands	706,047	277,147	134,893	152,026	105,299
Total stockholders’ equity	US$ in thousands	137,202	187,375	67,854	103,891	54,649
Financial leverage ratio		5.15	1.48	1.99	1.46	1.93

December 31, 2023 calculation

Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $706,047K ÷ $137,202K
= 5.15

The financial leverage ratio for TransMedics Group Inc has exhibited significant variations over the past five years. The ratio increased from 1.46 in 2019 to 1.93 in 2020, indicating a higher level of financial leverage. However, in 2021, the ratio dropped to 1.99, then decreased further to 1.48 in 2022, suggesting a decrease in financial leverage and potentially less reliance on debt financing.

Interestingly, in 2023, the financial leverage ratio surged to 5.15, reflecting a substantial increase in leverage compared to the previous years. This substantial increase in leverage could imply that TransMedics Group Inc may have taken on more debt relative to its equity, potentially to fund expansion or other strategic initiatives.

Overall, the fluctuation in the financial leverage ratio over the years indicates changes in the company's capital structure and financing decisions. It is essential for stakeholders to closely monitor these changes to assess the company's risk profile and financial stability.