TransMedics Group Inc (TMDX)
Solvency ratios
| 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 | Dec 31, 2019 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.65 | 0.67 | 0.70 | 0.72 | 0.73 | 0.73 | 0.20 | 0.21 | 0.21 | 0.30 | 0.28 | 0.26 | 0.27 | 0.25 | 0.24 | 0.23 | 0.22 | 0.21 | 0.35 | 0.32 |
| Debt-to-capital ratio | 0.71 | 0.73 | 0.76 | 0.79 | 0.80 | 0.78 | 0.23 | 0.24 | 0.24 | 0.41 | 0.37 | 0.34 | 0.31 | 0.28 | 0.26 | 0.25 | 0.24 | 0.23 | 0.42 | 0.38 |
| Debt-to-equity ratio | 2.42 | 2.67 | 3.18 | 3.69 | 4.00 | 3.48 | 0.31 | 0.31 | 0.31 | 0.70 | 0.59 | 0.52 | 0.45 | 0.39 | 0.36 | 0.33 | 0.32 | 0.30 | 0.73 | 0.62 |
| Financial leverage ratio | 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 | 1.93 |
TransMedics Group Inc's solvency ratios show the company's ability to meet its long-term financial obligations and the extent to which it relies on debt financing. Over the periods analyzed, the debt-to-assets ratio has been fluctuating but generally increasing, reaching 0.65 as of Sep 30, 2024. This indicates that 65% of the company's assets are financed by debt.
The debt-to-capital ratio followed a similar trend, increasing over time and reaching 0.71 as of Sep 30, 2024. This ratio indicates that 71% of the company's capital structure is made up of debt.
The debt-to-equity ratio increased consistently over the periods analyzed, reaching 2.42 as of Sep 30, 2024. This high ratio of 2.42 implies that debt represents more than double the equity in the company's capital structure.
Lastly, the financial leverage ratio, which measures the company's financial risk due to debt, has also been increasing steadily, standing at 3.74 as of Sep 30, 2024. This high ratio of 3.74 indicates that the company is highly leveraged and has a substantial amount of debt compared to its equity.
Overall, the increasing trends in these solvency ratios suggest that TransMedics Group Inc has been relying more heavily on debt financing over time, which could potentially increase its financial risk and impact its long-term sustainability.
Coverage ratios
| 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 | Dec 31, 2019 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Interest coverage | 1.09 | -0.06 | -1.07 | -2.66 | -4.65 | -2.84 | -6.26 | -8.44 | -9.73 | -10.84 | -10.89 | -10.18 | -8.79 | -6.97 | -6.39 | -6.62 | -7.16 | -7.59 | -7.36 | -6.80 |
The interest coverage ratio for TransMedics Group Inc has been consistently below 1 for the majority of the periods analyzed. This indicates that the company's operating income is not sufficient to cover its interest expenses. The negative values recorded in several periods suggest that the company's earnings before interest and taxes (EBIT) were insufficient to cover its interest obligations.
The declining trend in interest coverage over time is concerning as it signifies a worsening ability to meet interest payments. A consistently low interest coverage ratio can indicate financial distress and may raise doubts about the company's ability to service its debt obligations in the long run.
Overall, the consistently low and negative interest coverage ratios of TransMedics Group Inc suggest a high level of financial risk associated with the company's ability to meet its interest expenses from its operating income. Investors and creditors may view this as a red flag and closely monitor the company's financial performance and debt levels.