TransMedics Group Inc (TMDX)
Interest coverage
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 50,189 | -15,780 | -33,156 | -41,134 | -24,731 |
| Interest expense | US$ in thousands | 14,409 | 10,791 | 3,726 | 3,874 | 3,985 |
| Interest coverage | 3.48 | -1.46 | -8.90 | -10.62 | -6.21 |
December 31, 2024 calculation
Interest coverage = EBIT ÷ Interest expense
= $50,189K ÷ $14,409K
= 3.48
TransMedics Group Inc's interest coverage ratio has exhibited varying trends over the past five years. As of December 31, 2020, the interest coverage ratio stood at -6.21, indicating that the company's operating income was insufficient to cover its interest expenses. This negative ratio persisted in the subsequent years, reaching -10.62 by December 31, 2021, and further declining to -8.90 by December 31, 2022.
However, there was a significant improvement in the interest coverage ratio by December 31, 2023, when it increased to -1.46. While still negative, this improvement suggests a better ability to meet interest obligations from operating income. By December 31, 2024, the interest coverage ratio turned positive at 3.48, indicating that the company's operating income was now more than sufficient to cover interest expenses.
Overall, TransMedics Group Inc's interest coverage ratio has shown volatility and a recent positive turn, signaling potential improvement in its financial health and decreased risk of default due to interest payments. Continued monitoring of this ratio will be important to assess the company's ongoing ability to service its debt obligations.
Peer comparison
Dec 31, 2024