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.