Tandem Diabetes Care Inc (TNDM)
Return on equity (ROE)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | -222,611 | -94,594 | 15,566 | -34,382 | -24,753 |
| Total stockholders’ equity | US$ in thousands | 313,632 | 439,947 | 433,112 | 366,305 | 194,979 |
| ROE | -70.98% | -21.50% | 3.59% | -9.39% | -12.70% |
December 31, 2023 calculation
ROE = Net income ÷ Total stockholders’ equity
= $-222,611K ÷ $313,632K
= -70.98%
Based on the data provided, Tandem Diabetes Care Inc's return on equity (ROE) has fluctuated significantly over the past five years. In 2019, the ROE was -12.70%, indicating that the company had a negative return on equity, implying that it was not generating profits from its equity base. However, in 2020, the ROE deteriorated further to -9.39%.
In 2021, there was a notable improvement in the ROE to 3.59%, suggesting that the company started to generate a positive return on its equity investments. Despite this improvement, the ROE declined in 2022 to -21.50%, signaling a setback in the company's profitability.
The most recent data for 2023 shows a significant decrease in ROE to -70.98%, reflecting a substantial drop in the company's ability to generate profit from shareholders' equity.
Overall, the negative trend in Tandem Diabetes Care Inc's ROE over the past five years raises concerns about the company's efficiency in utilizing its equity capital to generate profits for its shareholders. It is important for the company to focus on improving its profitability and operational efficiency to enhance its ROE in the future.
Peer comparison
Dec 31, 2023