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.