Tandem Diabetes Care Inc (TNDM)

Cash ratio

Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Cash and cash equivalents US$ in thousands 58,868 172,517 71,181 94,613 51,175
Short-term investments US$ in thousands 409,044 444,384 552,630 390,323 125,283
Total current liabilities US$ in thousands 195,258 165,290 131,856 103,852 99,396
Cash ratio 2.40 3.73 4.73 4.67 1.78

December 31, 2023 calculation

Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($58,868K + $409,044K) ÷ $195,258K
= 2.40

The cash ratio measures a company's ability to cover its short-term liabilities with its cash and cash equivalents. Tandem Diabetes Care Inc's cash ratio has shown fluctuating values over the past five years. In 2023, the cash ratio decreased to 2.48 from 3.78 in 2022, indicating a lower ability to cover short-term liabilities solely with cash on hand. However, the ratio remains above 1, suggesting the company still has sufficient cash to meet its short-term obligations. Comparing to the ratios from 2019 to 2022, the company had a substantial increase in 2021 with a ratio of 4.79, showing a strong ability to cover short-term liabilities with cash reserves. Overall, Tandem Diabetes Care Inc has maintained a relatively healthy cash position in recent years, with some fluctuations in its cash ratio.