Tandem Diabetes Care Inc (TNDM)

Receivables 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
Revenue (ttm) US$ in thousands 739,136 762,842 785,031 789,444 796,589 786,083 761,228 733,133 697,845 655,914 596,546 531,931 490,754 431,087 406,936 394,167 362,230 330,031 274,984 212,752
Receivables US$ in thousands 105,555 100,318 98,714 91,393 114,717 112,805 103,763 94,133 110,725 87,462 80,212 73,673 82,195 52,104 45,031 53,962 46,585 45,325 48,438 33,027
Receivables turnover 7.00 7.60 7.95 8.64 6.94 6.97 7.34 7.79 6.30 7.50 7.44 7.22 5.97 8.27 9.04 7.30 7.78 7.28 5.68 6.44

December 31, 2023 calculation

Receivables turnover = Revenue (ttm) ÷ Receivables
= $739,136K ÷ $105,555K
= 7.00

The receivables turnover ratio measures the efficiency of a company in collecting payments from its customers. It indicates how many times a company converts its accounts receivable into cash during a specific period. A higher receivables turnover ratio usually implies more efficient management of accounts receivable.

Analyzing the data provided for Tandem Diabetes Care Inc:
- The receivables turnover ratio for Q4 2023 was 7.08, which indicates that the company converted its accounts receivable into cash approximately 7.08 times during that quarter.
- Comparing this to the previous quarter, Q3 2023, the receivables turnover decreased slightly to 7.69.
- However, the ratio improved in Q2 2023 with a turnover of 8.01, suggesting more efficient collection of receivables during that period.
- Q1 2023 also showed a strong performance with a turnover ratio of 8.70, signifying a peak in efficiency for that year.

When looking at the trend over the past year:
- The company's performance in managing accounts receivable has been relatively stable, hovering around the 7 to 8 times turnover range.
- The highest point reached was in Q1 2023 with a turnover ratio of 8.70, indicating significant efficiency in collecting payments from customers.
- Overall, Tandem Diabetes Care Inc's receivables turnover ratios reflect a consistent and efficient approach to managing its accounts receivable over the analyzed quarters.