Tandem Diabetes Care Inc (TNDM)
Quick 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 | 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 |
Receivables | US$ in thousands | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
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 |
Quick 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
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 declining trend over the years, indicating potential liquidity challenges. The quick ratio, which measures the company's ability to meet its short-term obligations with its most liquid assets, was at a healthy level of 1.61 as of March 31, 2020. However, it improved significantly to 5.02 as of June 30, 2021, signaling strong liquidity position.
Subsequently, the quick ratio gradually declined and fluctuated around the range of 3.0 to 5.0 until September 30, 2022. From that point onwards, there was a more pronounced decrease in the quick ratio, reaching 1.77 as of December 31, 2024. This declining trend could suggest potential difficulties in meeting short-term obligations without relying on inventory and prepaid expenses.
It is important to note that a quick ratio below 1.0 may raise concerns about the company's ability to cover its short-term liabilities. Therefore, Tandem Diabetes Care Inc's decreasing quick ratio over the years may require further investigation into its liquidity management and potential strategies to improve its short-term liquidity position.
Peer comparison
Dec 31, 2024