TransMedics Group Inc (TMDX)
Interest coverage
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 39,412 | 36,320 | 9,058 | -1,925 | -15,880 | -29,042 | -12,323 | -24,562 | -32,624 | -38,603 | -43,957 | -42,940 | -40,305 | -33,962 | -26,099 | -23,892 | -24,731 | -27,505 | -30,580 | -31,162 |
| Interest expense (ttm) | US$ in thousands | 28,851 | 28,885 | 14,416 | 13,298 | 10,791 | 8,193 | 5,390 | 3,757 | 3,626 | 3,597 | 3,789 | 3,882 | 3,874 | 3,867 | 3,859 | 3,895 | 3,985 | 4,077 | 4,190 | 4,302 |
| Interest coverage | 1.37 | 1.26 | 0.63 | -0.14 | -1.47 | -3.54 | -2.29 | -6.54 | -9.00 | -10.73 | -11.60 | -11.06 | -10.40 | -8.78 | -6.76 | -6.13 | -6.21 | -6.75 | -7.30 | -7.24 |
December 31, 2024 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $39,412K ÷ $28,851K
= 1.37
TransMedics Group Inc has shown a consistent improvement in its interest coverage ratio over the last few years, as evidenced by the increasing trend from negative figures to positive figures. The company's interest coverage ratio was negative for the periods up to March 31, 2023, indicating that its operating income was insufficient to cover its interest expense during those periods.
However, starting from June 30, 2023, the interest coverage ratio improved significantly, turning positive and continuing to increase in the subsequent quarters. This positive trend suggests that TransMedics Group Inc's operating income has become sufficient to cover its interest expense, which is a positive sign for the company's financial health.
The interest coverage ratio exceeding 1 indicates that the company is generating enough operating income to cover its interest expenses, with ratios above 2 generally considered healthy. Therefore, the recent positive interest coverage ratios for TransMedics Group Inc reflect an improved financial position and ability to meet its debt obligations. It indicates that the company's financial performance has strengthened, which could potentially lead to increased investor confidence and improved access to financing at favorable terms.
Peer comparison
Dec 31, 2024