Tandem Diabetes Care Inc (TNDM)

Days of sales outstanding (DSO)

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Receivables turnover		6.97	6.93	6.29	5.91	7.78
DSO	days	52.37	52.67	58.00	61.73	46.94

December 31, 2023 calculation

DSO = 365 ÷ Receivables turnover
= 365 ÷ 6.97
= 52.37

Tandem Diabetes Care Inc's Days Sales Outstanding (DSO) is a measure of how long it takes the company to collect revenue after making a sale. A lower DSO indicates that the company is more efficient in collecting payments from customers.

Over the past five years, Tandem Diabetes Care Inc's DSO has fluctuated. In 2019, the DSO was at its lowest at 46.93 days, suggesting efficient collection of revenue. However, in 2020, the DSO increased to 60.14 days, indicating a slower collection process. This trend continued in 2021 with a further increase to 57.51 days.

However, there was improvement in DSO in the recent years, with the metric lowering to 52.26 days in 2022 and 51.53 days in 2023. This suggests that the company has been able to accelerate its collection of revenues, potentially through improved credit policies, more efficient invoicing processes, or better monitoring of customer payments.

Overall, Tandem Diabetes Care Inc's DSO has shown variability over the years, but the recent trend of decreasing DSO indicates an improvement in the efficiency of the company's accounts receivable management, which is a positive sign for its financial health.