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.