TransMedics Group Inc (TMDX)
Interest coverage
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | -15,937 | -31,437 | -39,428 | -24,763 | -29,194 |
| Interest expense | US$ in thousands | 10,791 | 3,726 | 3,874 | 3,985 | 4,353 |
| Interest coverage | -1.48 | -8.44 | -10.18 | -6.21 | -6.71 |
December 31, 2023 calculation
Interest coverage = EBIT ÷ Interest expense
= $-15,937K ÷ $10,791K
= -1.48
TransMedics Group Inc's interest coverage ratio has shown a fluctuating trend over the past five years. The interest coverage ratio measures a company's ability to pay its interest expenses on outstanding debt. A ratio of less than 1 indicates that the company is not generating enough operating income to cover its interest payments.
Looking at the data provided:
- In 2023, the interest coverage ratio stands at -1.48, indicating that the company's operating income was insufficient to cover its interest expenses.
- In 2022, the interest coverage ratio was -8.44, showing a significant deterioration from the previous year.
- In 2021 and 2020, the interest coverage ratios were also negative, indicating financial distress as operating income remained insufficient to cover interest expenses.
- In 2019, the interest coverage ratio was -6.71, showing a slight improvement from the previous year but still indicating financial challenges.
Overall, the negative values of the interest coverage ratio over the past five years suggest that TransMedics Group Inc has been struggling to generate sufficient operating income to cover its interest payments, raising concerns about its financial stability and ability to service its debt obligations.
Peer comparison
Dec 31, 2023