Tandem Diabetes Care Inc (TNDM)

Payables 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
Payables	US$ in thousands	49,586	46,142	57,080	55,231	55,730	61,531	50,661	45,341	28,032	26,973	27,504	28,184	17,805	20,499	16,371	21,783	17,745	16,314	9,268	11,206
Payables turnover		14.99	12.06	9.91	9.80	9.39	11.39	13.11	13.93	21.40	20.82	18.99	17.08	25.41	20.03	23.86	16.95	19.13	19.15	29.98	21.02

December 31, 2023 calculation

Payables turnover = Cost of revenue (ttm) ÷ Payables
= $743,456K ÷ $49,586K
= 14.99

The payables turnover ratio for Tandem Diabetes Care Inc has been fluctuating over the past eight quarters, ranging from a low of 6.17 in Q3 2022 to a high of 8.27 in Q3 2023. This ratio indicates how efficiently the company is managing its payments to suppliers. A higher turnover ratio suggests that the company is paying off its suppliers more frequently within a given period.

Overall, the trend shows some variation, but there seems to be a generally steady performance in managing payables over the periods analyzed. It is important to note that a high turnover ratio could indicate either favorable credit terms with suppliers or aggressive payment practices. Conversely, a low turnover ratio may signal potential liquidity issues or inefficiencies in managing payables.

Investors and stakeholders should consider this ratio alongside other financial metrics and factors to gain a comprehensive understanding of Tandem Diabetes Care Inc's financial health and operational efficiency.