Tandem Diabetes Care Inc (TNDM)

Days of sales outstanding (DSO)

		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	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Receivables turnover		7.00	7.60	7.95	8.64	6.94	6.97	7.34	7.79	6.30	7.50	7.44	7.22	5.97	8.27	9.04	7.30	7.78	7.28	5.68	6.44
DSO	days	52.13	48.00	45.90	42.26	52.56	52.38	49.75	46.87	57.91	48.67	49.08	50.55	61.13	44.12	40.39	49.97	46.94	50.13	64.29	56.66

December 31, 2023 calculation

DSO = 365 ÷ Receivables turnover
= 365 ÷ 7.00
= 52.13

By analyzing the days of sales outstanding (DSO) for Tandem Diabetes Care Inc over the past eight quarters, we can observe a trend in the company's collection efficiency. The DSO measures the average number of days it takes for a company to collect payment after making a sale, indicating how effectively it manages its accounts receivable.

From Q1 2022 to Q4 2023, Tandem Diabetes Care Inc's DSO ranged from a low of 41.98 days to a high of 52.26 days. The downward trend in DSO from Q1 2022 to Q1 2023 suggests an improvement in the company's accounts receivable management efficiency. However, in Q4 2023, the DSO increased to 51.53 days, indicating a slight deterioration in collection efficiency compared to the previous quarter.

Overall, the company's DSO has shown some fluctuations over the quarters, indicating potential variability in its ability to collect payments from customers in a timely manner. It is essential for Tandem Diabetes Care Inc to monitor and manage its DSO effectively to ensure a healthy cash flow and financial stability.