Tandem Diabetes Care Inc (TNDM)

Cash conversion cycle

		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
Days of inventory on hand (DOH)	days	95.81	101.49	145.52	143.82	151.69	137.28	139.66	123.16	104.47	100.77	88.76	84.96	76.61	77.94	85.96	94.38	97.60	123.42	116.78	120.53
Days of sales outstanding (DSO)	days	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—
Number of days of payables	days	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—
Cash conversion cycle	days	95.81	101.49	145.52	143.82	151.69	137.28	139.66	123.16	104.47	100.77	88.76	84.96	76.61	77.94	85.96	94.38	97.60	123.42	116.78	120.53

December 31, 2024 calculation

Cash conversion cycle = DOH + DSO – Number of days of payables
= 95.81 + — – —
= 95.81

The cash conversion cycle of Tandem Diabetes Care Inc has shown some fluctuations over the years based on the provided data. Initially starting at 120.53 days as of March 31, 2020, the company's cash conversion cycle decreased to 76.61 days by December 31, 2021, indicating an improvement in managing its cash flow, accounts receivable, and inventory turnover.

However, the cycle increased to 151.69 days by December 31, 2023, suggesting potential issues with converting sales into cash efficiently. There was a slight improvement by December 31, 2024, with the cycle at 95.81 days.

Overall, Tandem Diabetes Care Inc experienced fluctuations in its cash conversion cycle, with periods of improvement followed by some deterioration. It is essential for the company to continue monitoring and managing its cash flow, accounts receivable, and inventory effectively to ensure optimal financial performance and operational efficiency.