Tandem Diabetes Care Inc (TNDM)

Quick ratio

		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	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Cash	US$ in thousands	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	51,175	46,060	38,157	40,445
Short-term investments	US$ in thousands	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	125,283	110,887	93,231	85,159
Receivables	US$ in thousands	105,555	100,318	98,714	91,393	114,717	112,805	103,763	94,133	110,725	87,462	80,212	73,673	82,195	52,104	45,031	53,962	46,585	45,325	48,438	33,027
Total current liabilities	US$ in thousands	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	99,396	100,266	84,214	76,680
Quick ratio		2.94	3.20	3.47	3.57	4.43	4.16	5.31	5.53	5.57	5.70	5.75	5.68	5.46	4.90	4.12	2.15	2.24	2.02	2.14	2.07

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 of Tandem Diabetes Care Inc has shown a decreasing trend over the past eight quarters, starting at a high of 5.60 in Q1 2022 and decreasing to 3.02 in Q4 2023. Despite the decline, the quick ratio has generally remained above 1.0, indicating that the company has had a strong ability to meet its short-term obligations with its most liquid assets.

The quick ratio measures a company's ability to cover its current liabilities with its quick assets, which are assets that can be easily converted into cash within a short period. A quick ratio above 1.0 typically suggests that the company is financially healthy and able to meet its short-term obligations without relying heavily on inventory or other less liquid assets.

Although the downward trend in the quick ratio may raise some concerns, Tandem Diabetes Care Inc's current quick ratio of 3.02 in Q4 2023 still indicates a strong liquidity position. It is important for the company to continue monitoring its liquidity management to ensure it can meet its financial obligations efficiently in the future.