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.