Tandem Diabetes Care Inc (TNDM)

Working capital 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
Total current assets US$ in thousands 747,989 758,144 764,304 757,919 849,976 834,303 835,044 818,464 811,520 754,947 698,285 661,696 637,235 592,293 539,679 280,873 276,141 246,598 213,156 186,028
Total current liabilities US$ in thousands 195,258 187,110 174,655 171,157 165,290 173,630 139,259 131,815 131,856 119,650 108,723 103,410 103,852 105,506 114,307 99,647 99,396 100,266 84,214 76,680
Working capital turnover 1.34 1.34 1.33 1.35 1.16 1.19 1.09 1.07 1.03 1.03 1.01 0.95 0.92 0.89 0.96 2.18 2.05 2.26 2.13 1.95

December 31, 2023 calculation

Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $739,136K ÷ ($747,989K – $195,258K)
= 1.34

Based on the data provided, Tandem Diabetes Care Inc's working capital turnover has shown relatively consistent performance over the past eight quarters. The working capital turnover ratio has ranged between 1.07 to 1.35 during this period.

A working capital turnover ratio of 1.35 indicates that, on average, the company is generating $1.35 in revenue for every dollar of working capital invested. This suggests that Tandem Diabetes Care Inc is effectively utilizing its working capital to generate sales.

The stability of the working capital turnover ratio over the quarters reflects the company's ability to efficiently manage its working capital and generate revenue consistently. It is important to note that a higher turnover ratio generally indicates better operational efficiency in utilizing its working capital.

Overall, Tandem Diabetes Care Inc's working capital turnover ratio demonstrates a consistent and effective utilization of its working capital in generating sales, which is a positive indicator of the company's financial performance.