Tandem Diabetes Care Inc (TNDM)
Return on total capital
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | -99,285 | -210,372 | -86,644 | 22,653 | -7,957 |
| Long-term debt | US$ in thousands | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 263,098 | 313,632 | 439,947 | 433,112 | 366,305 |
| Return on total capital | -37.74% | -67.08% | -19.69% | 5.23% | -2.17% |
December 31, 2024 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $-99,285K ÷ ($—K + $263,098K)
= -37.74%
Tandem Diabetes Care Inc's return on total capital has shown significant fluctuations over the years. In December 2020, the company reported a negative return of -2.17%, indicating that the capital employed did not generate adequate returns. By December 2021, there was a positive improvement as the return on total capital increased to 5.23%, suggesting that the company was better utilizing its capital to generate profits.
However, the trend reversed in the following years. By December 2022, the return on total capital plummeted to -19.69%, indicating a significant decline in the company's ability to generate returns relative to the capital invested. The situation worsened in December 2023, with a drastic decline to -67.08%, indicating a substantial loss in capital efficiency.
In December 2024, the return on total capital improved slightly to -37.74%, but still remained negative, reflecting ongoing challenges in effectively utilizing capital to generate profits. Overall, Tandem Diabetes Care Inc's return on total capital has been volatile, with the company experiencing periods of both positive and negative returns, highlighting the need for strategic management of its capital resources.
Peer comparison
Dec 31, 2024