Tandem Diabetes Care Inc (TNDM)
Quick ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 69,234 | 58,868 | 172,517 | 71,181 | 94,613 |
| Short-term investments | US$ in thousands | 369,095 | 409,044 | 444,384 | 552,630 | 390,323 |
| Receivables | US$ in thousands | — | — | — | — | — |
| Total current liabilities | US$ in thousands | 247,049 | 195,258 | 165,290 | 131,856 | 103,852 |
| Quick ratio | 1.77 | 2.40 | 3.73 | 4.73 | 4.67 |
December 31, 2024 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($69,234K
+ $369,095K
+ $—K)
÷ $247,049K
= 1.77
The quick ratio of Tandem Diabetes Care Inc has shown a positive trend over the years, starting at a strong 4.67 in December 2020 and gradually increasing to 4.73 by December 2021. However, in the subsequent years, there was a slight decrease to 3.73 by December 2022 and a more significant decline to 2.40 by December 2023. The ratio further dropped to 1.77 by December 2024.
The quick ratio measures the company's ability to cover its short-term liabilities with its most liquid assets. A ratio above 1 indicates that the company has enough liquid assets to cover its short-term obligations. Despite the recent decreases, Tandem Diabetes Care Inc still maintains a quick ratio above 1 in all the years provided, indicating a relatively healthy liquidity position overall. It is important for the company to closely monitor this ratio to ensure it maintains a strong liquidity position to meet its short-term financial obligations.
Peer comparison
Dec 31, 2024