Tandem Diabetes Care Inc (TNDM)
Return on assets (ROA)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | -96,025 | -222,611 | -94,594 | 15,566 | -34,382 |
| Total assets | US$ in thousands | 967,658 | 952,658 | 1,052,780 | 905,137 | 716,415 |
| ROA | -9.92% | -23.37% | -8.99% | 1.72% | -4.80% |
December 31, 2024 calculation
ROA = Net income ÷ Total assets
= $-96,025K ÷ $967,658K
= -9.92%
Based on the data provided, Tandem Diabetes Care Inc's return on assets (ROA) has fluctuated over the past five years. In December 2020, the company had a negative ROA of -4.80%, indicating that its assets were not effectively generating profit. However, by December 2021, there was an improvement as the ROA increased to 1.72%, showing a better utilization of assets to generate earnings.
Unfortunately, the positive trend did not continue in the subsequent years. By December 2022, the ROA declined significantly to -8.99%, reflecting a decrease in profitability relative to the assets employed. The situation worsened in December 2023 with a ROA of -23.37%, indicating a substantial decline in the efficiency of asset utilization in generating profits.
In the most recent year reported, December 2024, the ROA continued to be negative at -9.92%, which suggests ongoing challenges with generating earnings relative to the assets held. Overall, the trend in Tandem Diabetes Care Inc's ROA over the period highlights the importance of closely monitoring and improving asset utilization to enhance profitability and financial performance.
Peer comparison
Dec 31, 2024