Tandem Diabetes Care Inc (TNDM)
Total asset 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 |
| Total assets | US$ in thousands | 952,658 | 1,052,780 | 905,137 | 716,415 | 326,110 |
| Total asset turnover | 0.77 | 0.76 | 0.77 | 0.68 | 1.11 |
December 31, 2023 calculation
Total asset turnover = Revenue ÷ Total assets
= $735,632K ÷ $952,658K
= 0.77
Tandem Diabetes Care Inc's total asset turnover has exhibited fluctuations over the past five years. The company's total asset turnover ratio was 0.78 in both 2023 and 2021, indicating that for every dollar of assets held by the company, it generated $0.78 in sales revenue during those years.
The slight increase in total asset turnover from 2022 to 2023 suggests an improvement in efficiency in utilizing its assets to generate sales. However, the ratio remains below 1, indicating that the company is not generating significant revenue relative to its asset base.
The significant drop in total asset turnover to 0.70 in 2020 may suggest either a decrease in sales relative to assets held or an increase in asset base outpacing revenue generation during that year.
The notably high total asset turnover of 1.11 in 2019 indicates that the company was very efficient in generating sales from its assets, potentially due to either high sales or a lean asset base.
In conclusion, the total asset turnover ratio for Tandem Diabetes Care Inc has shown variability over the years, with a recent uptick in 2023. Further analysis would be required to understand the factors driving these fluctuations and to assess the company's overall asset utilization efficiency.
Peer comparison
Dec 31, 2023