Tandem Diabetes Care Inc (TNDM)
Operating return on assets (Operating ROA)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Operating income | US$ in thousands | -233,230 | -92,848 | 22,653 | -7,957 | -16,722 |
| Total assets | US$ in thousands | 952,658 | 1,052,780 | 905,137 | 716,415 | 326,110 |
| Operating ROA | -24.48% | -8.82% | 2.50% | -1.11% | -5.13% |
December 31, 2023 calculation
Operating ROA = Operating income ÷ Total assets
= $-233,230K ÷ $952,658K
= -24.48%
Operating return on assets (operating ROA) measures how efficiently a company is generating profits from its operating activities relative to its total assets. Tandem Diabetes Care Inc's operating ROA has fluctuated over the past five years, ranging from -16.22% in 2023 to 2.50% in 2021.
The negative operating ROA values in 2023, 2020, and 2019 indicate that the company's operating income was insufficient to cover the total assets employed, suggesting operational inefficiencies or challenges. The highest operating ROA of 2.50% in 2021 implies that the company was able to generate a modest return on its assets during that period.
Overall, the inconsistent performance in operating ROA over the years may signal potential issues in operational efficiency, asset management, or profitability for Tandem Diabetes Care Inc. Further analysis of the company's operational and financial strategies would be beneficial to understand the factors contributing to these fluctuations in operating ROA.
Peer comparison
Dec 31, 2023