Tandem Diabetes Care Inc (TNDM)

Quick ratio

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Cash	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
Receivables	US$ in thousands	105,555	114,717	110,725	82,195	46,585
Total current liabilities	US$ in thousands	195,258	165,290	131,856	103,852	99,396
Quick ratio		2.94	4.43	5.57	5.46	2.24

December 31, 2023 calculation

Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($58,868K + $409,044K + $105,555K) ÷ $195,258K
= 2.94

The quick ratio for Tandem Diabetes Care Inc has fluctuated over the past five years. The ratio stood at 3.02 as of December 31, 2023, indicating a decrease from the previous year. However, it still indicates that the company has $3.02 in liquid assets available to cover each $1 of current liabilities.

Comparing this to previous years, the quick ratio has demonstrated a strong ability to meet short-term obligations. The ratio reached its peak of 5.63 as of December 31, 2021, showing a significant improvement in liquidity and financial health.

While the latest ratio decrease from the prior year might raise some concerns, it is essential to consider the trend over multiple years to assess the company's overall liquidity position. Despite the slight decline in the quick ratio, Tandem Diabetes Care Inc still appears to have a healthy liquidity position, with a historical trend of maintaining a comfortable buffer of liquid assets to cover its short-term obligations.