Tandem Diabetes Care Inc (TNDM)

Pretax margin

		Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Earnings before tax but after interest (EBT) (ttm)	US$ in thousands	-220,354	-205,122	-221,731	-200,012	-92,854	-65,596	-12,378	4,647	15,901	21,794	6,577	-26,699	-36,305	-50,614	-44,074	-16,379	-24,604	-23,596	-55,012	-112,859
Revenue (ttm)	US$ in thousands	739,136	762,842	785,031	789,444	796,589	786,083	761,228	733,133	697,845	655,914	596,546	531,931	490,754	431,087	406,936	394,167	362,230	330,031	274,984	212,752
Pretax margin		-29.81%	-26.89%	-28.24%	-25.34%	-11.66%	-8.34%	-1.63%	0.63%	2.28%	3.32%	1.10%	-5.02%	-7.40%	-11.74%	-10.83%	-4.16%	-6.79%	-7.15%	-20.01%	-53.05%

December 31, 2023 calculation

Pretax margin = EBT (ttm) ÷ Revenue (ttm)
= $-220,354K ÷ $739,136K
= -29.81%

The pretax margin for Tandem Diabetes Care Inc has shown a decreasing trend over the past eight quarters. In Q4 2023, the pretax margin was recorded at -29.46%, indicating that the company incurred losses before taxes. This represents a significant decline from the pretax margin of -11.59% in Q4 2022. The company experienced its lowest pretax margin in Q2 2023 at -28.05%, reflecting ongoing challenges in controlling operating expenses relative to revenue generation.

The fluctuating pretax margins suggest that Tandem Diabetes Care Inc may be facing difficulties in managing its costs efficiently or experiencing fluctuations in revenue streams. The consecutive negative pretax margins highlight the need for the company to focus on improving cost control measures, enhancing operational efficiency, and potentially exploring revenue-enhancing strategies to return to profitability.