Tandem Diabetes Care Inc (TNDM)
Return on equity (ROE)
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Net income (ttm) | US$ in thousands | -222,611 | -208,461 | -224,470 | -203,751 | -94,593 | -67,933 | -13,169 | 5,895 | 15,566 | 21,758 | 6,556 | -24,559 | -34,382 | -48,730 | -42,223 | -16,628 | -24,753 | -23,719 | -55,063 | -112,910 |
| Total stockholders’ equity | US$ in thousands | 313,632 | 314,000 | 329,234 | 338,753 | 439,947 | 421,822 | 449,584 | 437,382 | 433,112 | 389,654 | 346,085 | 313,414 | 366,305 | 326,544 | 267,704 | 207,176 | 194,979 | 166,994 | 145,345 | 120,962 |
| ROE | -70.98% | -66.39% | -68.18% | -60.15% | -21.50% | -16.10% | -2.93% | 1.35% | 3.59% | 5.58% | 1.89% | -7.84% | -9.39% | -14.92% | -15.77% | -8.03% | -12.70% | -14.20% | -37.88% | -93.34% |
December 31, 2023 calculation
ROE = Net income (ttm) ÷ Total stockholders’ equity
= $-222,611K ÷ $313,632K
= -70.98%
Based on the provided data, Tandem Diabetes Care Inc's return on equity (ROE) has been fluctuating over the past eight quarters. The ROE values have ranged from a low of -70.98% in Q4 2023 to a high of 1.35% in Q1 2022.
The negative ROE figures in most quarters suggest that the company's net income is insufficient to cover shareholder equity, indicating a potential inefficiency in the utilization of equity capital. The significant negative ROE values in recent quarters, such as -70.98% in Q4 2023 and -66.39% in Q3 2023, may raise concerns regarding the company's ability to generate sustainable profits relative to its equity base.
Furthermore, the decreasing trend in ROE from Q1 2022 to Q4 2023 indicates a deterioration in the company's profitability and efficiency in utilizing shareholder equity.
It is essential for Tandem Diabetes Care Inc to closely monitor and analyze the factors contributing to the negative ROE values and take appropriate measures to improve operational efficiency, profitability, and ultimately enhance shareholder wealth in the future.
Peer comparison
Dec 31, 2023