TransMedics Group Inc (TMDX)

Financial leverage ratio

		Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020
Total assets	US$ in thousands	804,076	785,571	758,577	723,831	706,047	689,227	690,358	287,088	277,147	274,873	117,285	124,008	134,893	131,146	140,512	145,783	152,026	159,322	163,137	96,923
Total stockholders’ equity	US$ in thousands	228,603	209,920	189,894	159,471	137,202	126,460	145,213	192,625	187,375	187,857	50,919	59,910	67,854	78,549	88,983	97,675	103,891	109,550	113,760	46,683
Financial leverage ratio		3.52	3.74	3.99	4.54	5.15	5.45	4.75	1.49	1.48	1.46	2.30	2.07	1.99	1.67	1.58	1.49	1.46	1.45	1.43	2.08

December 31, 2024 calculation

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

TransMedics Group Inc's financial leverage ratio demonstrates a fluctuating trend over the analyzed period. The ratio was relatively stable in the range of 1.4 to 1.6 from March 2020 to March 2022, indicating a moderate level of debt relative to equity. However, starting from June 2022, there was a sharp increase in the financial leverage ratio, peaking at 5.45 in September 2023 before gradually declining. This surge suggests a substantial increase in debt levels compared to equity, raising concerns about the company's financial risk and ability to meet its obligations. By the end of December 2024, the financial leverage ratio had moderated to 3.52, although it still remained elevated compared to the earlier periods. Investors and stakeholders should closely monitor the company's debt management practices and financial stability in light of these fluctuations in the financial leverage ratio.