Tandem Diabetes Care Inc (TNDM)

Gross profit margin

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Gross profit	US$ in thousands	489,574	367,690	412,986	376,215	260,520
Revenue	US$ in thousands	940,203	747,718	801,217	702,799	498,830
Gross profit margin		52.07%	49.17%	51.54%	53.53%	52.23%

December 31, 2024 calculation

Gross profit margin = Gross profit ÷ Revenue
= $489,574K ÷ $940,203K
= 52.07%

The gross profit margin for Tandem Diabetes Care Inc has shown fluctuations over the past five years.

In December 2020, the gross profit margin was relatively healthy at 52.23%, indicating that the company was efficiently managing its production costs and generating a decent profit on each unit sold.

By December 2021, the gross profit margin improved to 53.53%, showcasing potential operational efficiencies or pricing strategies that increased profitability.

However, by December 2022, there was a slight decline in the gross profit margin to 51.54%. This decline could signal increased production costs or pricing pressures that impacted the company's profitability.

Furthermore, in December 2023, the gross profit margin decreased significantly to 49.17%, indicating a potential challenge in maintaining profitability as costs may have risen faster than revenues.

Nevertheless, by December 2024, the gross profit margin rebounded to 52.07%, showing some recovery in profitability.

Overall, the fluctuations in Tandem Diabetes Care Inc's gross profit margin over the five-year period suggest varying levels of cost management effectiveness, pricing strategies, and market dynamics impacting the company's profitability.