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.