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.