Tandem Diabetes Care Inc (TNDM)
Operating return on assets (Operating ROA)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Operating income | US$ in thousands | -99,127 | -233,230 | -61,809 | 8,808 | -7,957 |
| Total assets | US$ in thousands | 967,658 | 952,658 | 1,052,780 | 905,137 | 716,415 |
| Operating ROA | -10.24% | -24.48% | -5.87% | 0.97% | -1.11% |
December 31, 2024 calculation
Operating ROA = Operating income ÷ Total assets
= $-99,127K ÷ $967,658K
= -10.24%
Tandem Diabetes Care Inc's operating return on assets (operating ROA) has displayed a noteworthy variation over the last five years. The metric stood at -1.11% on December 31, 2020, demonstrating a slightly negative profitability from the company's core operations. Subsequently, there was a notable improvement by December 31, 2021, as the operating ROA rose to 0.97%, indicating a return of nearly 1% on the assets utilized.
However, the situation took a turn for the worse in the following years. By December 31, 2022, the operating ROA plummeted to -5.87%, signifying a decline in the company's operational efficiency and profitability. The trend continued downwards with a significant drop to -24.48% by December 31, 2023, indicating substantial losses relative to the assets employed.
The latest data point, on December 31, 2024, shows a slight improvement compared to the previous year with a -10.24% operating ROA. Despite the improvement from the lowest point, the metric still suggests that Tandem Diabetes Care Inc is facing challenges in generating profits from its operating activities relative to its asset base.
Overall, the fluctuating trend in Tandem Diabetes Care Inc's operating ROA reflects the company's varying operational performance and highlights the importance of closely monitoring and managing asset utilization to drive profitability.
Peer comparison
Dec 31, 2024