Tandem Diabetes Care Inc (TNDM)
Cash conversion cycle
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 121.18 | 151.69 | 104.47 | 76.61 | 97.60 |
| Days of sales outstanding (DSO) | days | — | — | — | — | — |
| Number of days of payables | days | — | — | — | — | — |
| Cash conversion cycle | days | 121.18 | 151.69 | 104.47 | 76.61 | 97.60 |
December 31, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 121.18 + — – —
= 121.18
The cash conversion cycle of Tandem Diabetes Care Inc has shown fluctuations over the past five years. As of December 31, 2020, the company's cash conversion cycle was 97.60 days, indicating the number of days it took for the company to convert its investments in inventory and other resources into cash flow. By December 31, 2021, the cash conversion cycle decreased to 76.61 days, suggesting an improvement in the company's efficiency in managing its working capital.
However, by December 31, 2022, the cash conversion cycle increased to 104.47 days, signaling a potential delay in converting investments back into cash. This trend continued into the following years, with the cash conversion cycle reaching 151.69 days by December 31, 2023, and then decreasing slightly to 121.18 days by December 31, 2024.
Overall, the fluctuating cash conversion cycle of Tandem Diabetes Care Inc indicates varying levels of efficiency in managing working capital and converting investments into cash over the years. The company may need to focus on streamlining its operations and improving its inventory management to potentially reduce the cash conversion cycle and enhance overall financial performance.
Peer comparison
Dec 31, 2024