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.