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.
Peer comparison
Dec 31, 2023