Tandem Diabetes Care Inc (TNDM)

Inventory turnover

		Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	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
Cost of revenue (ttm)	US$ in thousands	569,947	548,255	405,488	390,554	380,028	381,506	385,759	389,893	388,231	379,519	362,279	343,648	326,584	307,826	283,234	258,395	238,310	208,927	194,611	183,116
Inventory	US$ in thousands	149,612	152,441	161,661	153,893	157,937	143,492	147,599	131,557	111,117	104,774	88,098	79,987	68,551	65,734	66,705	66,816	63,721	70,644	62,263	60,469
Inventory turnover		3.81	3.60	2.51	2.54	2.41	2.66	2.61	2.96	3.49	3.62	4.11	4.30	4.76	4.68	4.25	3.87	3.74	2.96	3.13	3.03

December 31, 2024 calculation

Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $569,947K ÷ $149,612K
= 3.81

The inventory turnover ratio for Tandem Diabetes Care Inc has fluctuated over the past few years. It was relatively stable around the range of 3 to 4 from March 31, 2020, to June 30, 2022, indicating that the company was turning over its inventory approximately 3 to 4 times a year during this period.

However, from September 30, 2022, to December 31, 2024, there was more variability in the inventory turnover ratio. It dropped to as low as 2.41 on December 31, 2023, and spiked to 3.81 on December 31, 2024. This suggests that there were fluctuations in how efficiently Tandem Diabetes Care was managing its inventory during this period.

Overall, a high inventory turnover ratio generally indicates that a company is efficiently managing its inventory by quickly selling and replacing its products. On the other hand, a low inventory turnover ratio may indicate overstocking or slow sales, which can tie up capital and lead to obsolescence. Tandem Diabetes Care Inc should continue to monitor its inventory turnover ratio to ensure optimal inventory management practices.