Tandem Diabetes Care Inc (TNDM)

Fixed asset turnover

		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
Revenue (ttm)	US$ in thousands	739,136	762,842	785,031	789,444	796,589	786,083	761,228	733,133	697,845	655,914	596,546	531,931	490,754	431,087	406,936	394,167	362,230	330,031	274,984	212,752
Property, plant and equipment	US$ in thousands	76,542	75,760	73,752	74,578	68,552	72,905	58,901	49,987	50,386	49,621	48,890	50,445	50,022	49,320	44,385	37,626	32,923	28,072	22,750	17,182
Fixed asset turnover		9.66	10.07	10.64	10.59	11.62	10.78	12.92	14.67	13.85	13.22	12.20	10.54	9.81	8.74	9.17	10.48	11.00	11.76	12.09	12.38

December 31, 2023 calculation

Fixed asset turnover = Revenue (ttm) ÷ Property, plant and equipment
= $739,136K ÷ $76,542K
= 9.66

The fixed asset turnover ratio for Tandem Diabetes Care Inc has been showing a positive trend over the quarters, with values ranging from 9.77 to 14.76. The ratio measures how efficiently the company is utilizing its fixed assets to generate revenue.

The values of fixed asset turnover have been consistently high, indicating that Tandem Diabetes Care Inc is effectively utilizing its fixed assets to generate revenue. A higher fixed asset turnover ratio suggests that the company is efficiently using its assets to drive sales.

The decreasing trend from Q1 2022 to Q2 2023 could be attributed to various factors such as increased investment in fixed assets or a slower revenue growth compared to the increase in fixed assets. However, the ratio values are still on the higher side, which indicates that the company is relatively efficient in generating revenue from its fixed assets.

Overall, the trend of the fixed asset turnover ratio for Tandem Diabetes Care Inc suggests that the company is managing its fixed assets efficiently to drive revenue growth. It is important for the company to continue monitoring this ratio to ensure optimal utilization of its fixed assets.