Tandem Diabetes Care Inc (TNDM)
Profitability ratios
Return on sales
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Gross profit margin | 52.07% | 49.17% | 51.54% | 53.53% | 52.23% |
| Operating profit margin | -10.54% | -31.19% | -7.71% | 1.25% | -1.60% |
| Pretax margin | -9.77% | -29.46% | -11.59% | 2.26% | -7.27% |
| Net profit margin | -10.21% | -29.77% | -11.81% | 2.21% | -6.89% |
Tandem Diabetes Care Inc's gross profit margin has shown slight variations over the past five years, ranging from 51.54% to 53.53%. Despite some fluctuations, the company has generally maintained a healthy level of gross profit margin, indicating efficient production and cost management.
In terms of operating profit margin, Tandem Diabetes Care Inc faced challenges in profitability, with negative margins in most years. The company experienced a significant decline in operating profit margin from 2021 to 2023, reaching a low of -31.19%. Although there was a slight improvement in 2024, the company still ended the year with a negative operating profit margin of -10.54%.
Similarly, Tandem Diabetes Care Inc's pretax margin and net profit margin also remained negative during the period under review. The company's profitability was particularly impacted in 2023, with pretax and net profit margins falling to -29.46% and -29.77%, respectively. Although there was a slight recovery in 2024, the margins continued to be in the negative territory, with the net profit margin at -10.21%.
Overall, Tandem Diabetes Care Inc's profitability ratios reflect challenges in generating consistent profits and managing operating expenses effectively. The company will need to focus on improving operational efficiency and controlling costs to enhance its profitability in the future.
Return on investment
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | -10.24% | -24.48% | -5.87% | 0.97% | -1.11% |
| Return on assets (ROA) | -9.92% | -23.37% | -8.99% | 1.72% | -4.80% |
| Return on total capital | -37.74% | -67.08% | -19.69% | 5.23% | -2.17% |
| Return on equity (ROE) | -36.50% | -70.98% | -21.50% | 3.59% | -9.39% |
Tandem Diabetes Care Inc's profitability ratios reflect mixed performance over the years. The Operating return on assets (Operating ROA) improved from -1.11% in 2020 to 0.97% in 2021 but then deteriorated significantly to -24.48% in 2023, before recovering slightly to -10.24% in 2024.
Similarly, the Return on assets (ROA) ratio was negative at -4.80% in 2020, improved to 1.72% in 2021, but then declined sharply to -23.37% in 2023, before slightly recovering to -9.92% in 2024.
The Return on total capital ratio was negative at -2.17% in 2020, improved to 5.23% in 2021, but then worsened to -67.08% in 2023, before a slight recovery to -37.74% in 2024.
The Return on equity (ROE) ratio also followed a similar trend, starting at -9.39% in 2020, improving to 3.59% in 2021, and then declining significantly to -70.98% in 2023, before recovering slightly to -36.50% in 2024.
Overall, Tandem Diabetes Care Inc's profitability ratios show a mix of improvements and setbacks, indicating fluctuating returns on assets, capital, and equity over the years. Analysis of the underlying factors driving these trends would be necessary to understand the company's financial performance comprehensively.