Tandem Diabetes Care Inc (TNDM)

Cash ratio

		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
Cash and cash equivalents	US$ in thousands	69,234	49,039	47,697	58,979	58,868	79,611	130,751	127,762	172,517	123,786	114,966	93,681	71,181	112,375	98,578	120,791	94,613	129,481	222,479	74,485
Short-term investments	US$ in thousands	369,095	424,266	404,718	408,831	409,044	418,547	376,495	391,826	444,384	484,941	520,365	541,710	552,630	482,618	446,724	392,646	390,323	335,041	203,806	85,723
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
Cash ratio		1.77	1.83	1.88	2.42	2.40	2.66	2.90	3.04	3.73	3.51	4.56	4.82	4.73	4.97	5.02	4.97	4.67	4.40	3.73	1.61

December 31, 2024 calculation

Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($69,234K + $369,095K) ÷ $247,049K
= 1.77

The cash ratio of Tandem Diabetes Care Inc shows the company's ability to cover its short-term obligations with cash and cash equivalents. A higher cash ratio indicates a stronger liquidity position.

Looking at the data provided:
- The cash ratio increased steadily from 1.61 as of March 31, 2020, to a peak of 5.02 as of June 30, 2021, suggesting an improvement in liquidity over this period.
- Subsequently, the cash ratio fluctuated between 4.73 and 3.04 until March 31, 2023, indicating a relatively stable liquidity position.
- However, from March 31, 2023, to December 31, 2024, the cash ratio declined continuously, reaching a low of 1.77. This downward trend indicates a potential deteriorating liquidity position over this period.

Overall, while Tandem Diabetes Care Inc initially demonstrated a strong liquidity position, the decreasing trend in the cash ratio in the latter period may raise concerns about the company's ability to cover its short-term obligations with available cash and cash equivalents. Monitoring and analyzing the factors contributing to this trend will be crucial for assessing the company's financial health and liquidity management going forward.