Tandem Diabetes Care Inc (TNDM)

Inventory 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
Cost of revenue (ttm)	US$ in thousands	743,456	556,403	565,432	541,346	523,141	700,707	664,286	631,564	599,792	561,553	522,266	481,344	452,413	410,574	390,679	369,309	339,530	312,483	277,834	235,585
Inventory	US$ in thousands	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	49,073	40,732	27,341	22,826
Inventory turnover		4.71	3.88	3.83	4.11	4.71	6.69	7.54	7.90	8.75	8.54	7.83	7.20	7.10	5.81	6.27	6.11	6.92	7.67	10.16	10.32

December 31, 2023 calculation

Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $743,456K ÷ $157,937K
= 4.71

Tandem Diabetes Care Inc's inventory turnover has been on a declining trend over the past eight quarters. In Q4 2023, the inventory turnover ratio stood at 2.41, down from 2.66 in the previous quarter, Q3 2023. This indicates that the company's inventory is being sold and replaced at a slower pace compared to the previous quarter.

Furthermore, the inventory turnover ratio in Q4 2023 is the lowest in the provided data series, showing a potential inefficiency in managing inventory levels and sales. It is important for the company to closely monitor and optimize its inventory levels to avoid overstocking or understocking, which can impact cash flow and profitability.

Compared to the same quarter in the previous year, Q4 2022, the inventory turnover ratio has experienced a significant decrease from 3.49 to 2.41. This suggests that Tandem Diabetes Care Inc may be facing challenges in managing its inventory effectively and efficiently.

Overall, a declining inventory turnover ratio for Tandem Diabetes Care Inc signals the need for the company to streamline its inventory management processes and strategies to improve the efficiency of turning inventory into sales.