Tandem Diabetes Care Inc (TNDM)

Inventory turnover

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Cost of revenue	US$ in thousands	450,629	380,028	388,231	326,584	238,310
Inventory	US$ in thousands	149,612	157,937	111,117	68,551	63,721
Inventory turnover		3.01	2.41	3.49	4.76	3.74

December 31, 2024 calculation

Inventory turnover = Cost of revenue ÷ Inventory
= $450,629K ÷ $149,612K
= 3.01

Inventory turnover measures how efficiently a company manages its inventory by showing how many times it sells and replaces its inventory during a specific period. For Tandem Diabetes Care Inc, the inventory turnover has fluctuated over the years:

- In December 31, 2020, the inventory turnover was 3.74, indicating that the company sold and replaced its inventory approximately 3.74 times during that year.

- In December 31, 2021, the inventory turnover improved to 4.76, suggesting that the company became more efficient in managing its inventory by selling and replacing it almost 4.76 times during the year.

- However, in December 31, 2022, the inventory turnover decreased to 3.49, signaling a potential slowdown in inventory management efficiency.

- The trend continued in December 31, 2023, with a significant drop in inventory turnover to 2.41, indicating challenges in inventory management or potential issues related to sales performance.

- By December 31, 2024, the inventory turnover slightly improved to 3.01 but still remained below the levels seen in 2021, suggesting that Tandem Diabetes Care Inc may be working to enhance its inventory management processes.

Overall, the analysis of inventory turnover for Tandem Diabetes Care Inc indicates fluctuations in inventory management efficiency over the years, highlighting the importance for the company to carefully monitor and optimize its inventory turnover to maximize profitability and operational effectiveness.