Tandem Diabetes Care Inc (TNDM)
Profitability ratios
Return on sales
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Gross profit margin | 49.98% | 51.95% | 53.99% | 53.60% | 53.62% |
| Operating profit margin | -31.70% | -11.68% | 3.25% | -1.64% | -4.62% |
| Pretax margin | -29.94% | -11.68% | 2.28% | -7.47% | -6.79% |
| Net profit margin | -30.26% | -11.90% | 2.23% | -7.07% | -6.83% |
In analyzing Tandem Diabetes Care Inc's profitability ratios over the past five years, we observe a consistent decline in all major profitability margins.
The gross profit margin has decreased from 53.60% in 2019 to 49.17% in 2023, reflecting a downward trend in the company's ability to generate profits after accounting for the cost of goods sold.
The operating profit margin has shown a particularly significant decline, moving from -4.62% in 2019 to -20.66% in 2023. This implies that the company is experiencing challenges in controlling its operating expenses relative to its revenue, resulting in operating losses.
Similarly, the pretax margin and net profit margin have also deteriorated over the years. The pretax margin decreased from -6.79% in 2019 to -29.46% in 2023, indicating widening losses before accounting for taxes. The net profit margin followed a similar trend, declining from -6.83% in 2019 to -29.77% in 2023, suggesting that the company's bottom line profitability has worsened.
Overall, these declining profitability ratios raise concerns about Tandem Diabetes Care Inc's ability to generate and maintain profitability in the long term. Investors and stakeholders may need to closely monitor the company's financial performance and assess its strategies for improving profitability and operational efficiency.
Return on investment
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | -24.48% | -8.82% | 2.50% | -1.11% | -5.13% |
| Return on assets (ROA) | -23.37% | -8.99% | 1.72% | -4.80% | -7.59% |
| Return on total capital | -38.96% | -12.84% | 3.17% | -1.40% | -8.58% |
| Return on equity (ROE) | -70.98% | -21.50% | 3.59% | -9.39% | -12.70% |
Tandem Diabetes Care Inc's profitability ratios have shown a mixed performance over the past five years.
1. Operating return on assets (Operating ROA) has been fluctuating with a negative trend, indicating that the company's operating income generated from its assets has been declining.
2. Return on assets (ROA) also reflects a negative trend, indicating the company's overall ability to generate profits from its total assets has been decreasing over the years.
3. Return on total capital has shown inconsistency with negative values, suggesting that the return generated on the total capital employed by the company has been negative in recent years.
4. Return on equity (ROE) has been highly volatile with negative values, depicting a significant loss in shareholder value. This indicates that the company has been unable to generate profits that are favorable to its shareholders' investments over the years.
Overall, Tandem Diabetes Care Inc's profitability ratios reflect challenges in generating profits efficiently from its assets, capital, and equity, which may raise concerns about the company's financial performance and sustainability.