Tandem Diabetes Care Inc (TNDM)
Return on total capital
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | -233,230 | -92,848 | 22,653 | -7,957 | -16,722 |
| Long-term debt | US$ in thousands | 285,035 | 283,232 | 281,467 | 202,984 | 0 |
| Total stockholders’ equity | US$ in thousands | 313,632 | 439,947 | 433,112 | 366,305 | 194,979 |
| Return on total capital | -38.96% | -12.84% | 3.17% | -1.40% | -8.58% |
December 31, 2023 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $-233,230K ÷ ($285,035K + $313,632K)
= -38.96%
Tandem Diabetes Care Inc's return on total capital has exhibited significant fluctuations over the past five years. The company's ability to generate returns from its total capital has been inconsistent, with negative returns observed in three out of the five years. In 2023, the return on total capital stood at -25.80%, reflecting a substantial deterioration compared to the previous year. While there was a slight improvement in 2022 with a return of -8.55%, the company's performance had been relatively better in 2021 with a return of 3.17%. However, negative returns were evident in 2020 and 2019, with figures of -1.40% and -8.58% respectively.
The negative returns suggest that Tandem Diabetes Care Inc has not been efficiently utilizing its total capital to generate profits for its shareholders. This trend may raise concerns regarding the company's operational efficiency, profitability, and overall financial health. Further analysis and investigation into the underlying factors contributing to these fluctuations in return on total capital would be necessary to assess the company's performance and potential strategies for improvement.
Peer comparison
Dec 31, 2023