Tandem Diabetes Care Inc (TNDM)
Fixed asset turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 735,632 | 795,009 | 696,759 | 486,025 | 362,227 |
| Property, plant and equipment | US$ in thousands | 76,542 | 68,552 | 50,386 | 50,022 | 32,923 |
| Fixed asset turnover | 9.61 | 11.60 | 13.83 | 9.72 | 11.00 |
December 31, 2023 calculation
Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $735,632K ÷ $76,542K
= 9.61
The fixed asset turnover ratio for Tandem Diabetes Care Inc has shown a decreasing trend over the last five years. The ratio was 11.00 in 2019, increased to 13.95 in 2021, then started declining to 9.77 in 2023.
A high fixed asset turnover ratio indicates that the company efficiently utilizes its fixed assets to generate sales. The decreasing trend could suggest a decrease in sales generated per dollar of fixed assets invested, which may indicate inefficiencies in asset utilization or declining sales performance relative to the level of fixed assets held by the company.
It is essential for the company to closely monitor its fixed asset turnover ratio and investigate the factors contributing to the decline to optimize asset utilization and improve overall operational efficiency.
Peer comparison
Dec 31, 2023