Tandem Diabetes Care Inc (TNDM)
Working capital turnover
Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Revenue (ttm) | US$ in thousands | 1,059,521 | 973,669 | 796,002 | 770,009 | 747,718 | 771,424 | 790,349 | 794,694 | 801,218 | 790,712 | 765,792 | 737,669 | 702,799 | 660,868 | 604,844 | 541,941 | 498,830 | 439,163 | 410,217 | 394,236 |
Total current assets | US$ in thousands | 724,491 | 752,826 | 733,388 | 735,193 | 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 |
Total current liabilities | US$ in thousands | 247,049 | 259,276 | 240,610 | 192,971 | 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 |
Working capital turnover | 2.22 | 1.97 | 1.62 | 1.42 | 1.35 | 1.35 | 1.34 | 1.35 | 1.17 | 1.20 | 1.10 | 1.07 | 1.03 | 1.04 | 1.03 | 0.97 | 0.94 | 0.90 | 0.96 | 2.18 |
December 31, 2024 calculation
Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $1,059,521K ÷ ($724,491K – $247,049K)
= 2.22
The working capital turnover ratio for Tandem Diabetes Care Inc has exhibited some fluctuations over the reporting periods. At the beginning of March 2020, the ratio stood at 2.18, indicating that the company's working capital was turning over 2.18 times during that period. However, there was a significant decline in the ratio in subsequent quarters, dropping to 0.96 by June 2020.
From June 2020 onwards, the working capital turnover ratio remained below 1, which suggests that the company was not efficiently utilizing its working capital to generate sales. Nevertheless, there was a gradual improvement in the ratio over the following quarters, reaching a value of 1.42 by March 31, 2024. This increase indicates that the company was able to better manage its working capital to support sales growth.
The upward trend in the working capital turnover ratio from March 2020 to December 2024 signals an improvement in Tandem Diabetes Care Inc's effectiveness in utilizing its working capital to drive revenue generation. It indicates that the company was able to enhance its operational efficiency and streamline its working capital management processes over the reporting periods.
Peer comparison
Dec 31, 2024