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.