Tandem Diabetes Care Inc (TNDM)
Receivables turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 735,632 | 795,009 | 696,759 | 486,025 | 362,227 |
| Receivables | US$ in thousands | 105,555 | 114,717 | 110,725 | 82,195 | 46,585 |
| Receivables turnover | 6.97 | 6.93 | 6.29 | 5.91 | 7.78 |
December 31, 2023 calculation
Receivables turnover = Revenue ÷ Receivables
= $735,632K ÷ $105,555K
= 6.97
The receivables turnover ratio measures the efficiency of Tandem Diabetes Care Inc in collecting cash from its credit customers. A higher receivables turnover ratio indicates that the company is collecting its accounts receivable more quickly.
Analyzing the trend of Tandem Diabetes Care Inc's receivables turnover ratio from 2019 to 2023, we observe fluctuations in the ratio. The ratio was 7.78 in 2019, indicating that the company collected its receivables approximately 7.78 times during the year. However, this ratio decreased to 6.07 in 2020, before increasing to 6.35 in 2021 and further to 6.98 in 2022.
In 2023, the receivables turnover ratio improved to 7.08, which signifies that Tandem Diabetes Care Inc was able to generate cash from its credit sales at a faster rate compared to the previous year. This improvement suggests that the company's credit management and collection policies may have become more efficient during the year.
Overall, the increasing trend from 2020 to 2023 indicates an improvement in the company's ability to collect receivables efficiently. However, it is essential for Tandem Diabetes Care Inc to continue monitoring and managing its accounts receivable effectively to ensure a steady and sustainable improvement in its receivables turnover ratio.
Peer comparison
Dec 31, 2023