Tandem Diabetes Care Inc (TNDM)
Return on total capital
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | -86,361 | -115,838 | -120,978 | -126,052 | -210,372 | -195,399 | -215,283 | -193,672 | -87,058 | -59,786 | -6,293 | 10,552 | 22,235 | 28,159 | 15,925 | -15,468 | -26,582 | -43,101 | -41,356 | -16,898 |
| Long-term debt | US$ in thousands | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 263,098 | 237,710 | 233,875 | 243,064 | 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 |
| Return on total capital | -32.82% | -48.73% | -51.73% | -51.86% | -67.08% | -62.23% | -65.39% | -57.17% | -19.79% | -14.17% | -1.40% | 2.41% | 5.13% | 7.23% | 4.60% | -4.94% | -7.26% | -13.20% | -15.45% | -8.16% |
December 31, 2024 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $-86,361K ÷ ($—K + $263,098K)
= -32.82%
The return on total capital for Tandem Diabetes Care Inc has fluctuated significantly over the periods provided in the data. The company experienced negative returns on total capital from March 2020 to September 2021, indicating that the company was not generating sufficient returns relative to the total capital employed.
However, starting from June 2021, there was a notable improvement in the return on total capital, with positive returns recorded for the subsequent quarters. This improvement suggests that the company's profitability relative to the total capital invested began to strengthen.
Despite the positive trend observed in mid-2021, there was a decline in the return on total capital in the later quarters of 2022 and throughout 2023, with the figures consistently in the negative territory. This downturn indicates that the company may have faced challenges in generating profits in relation to the capital invested during this period.
By the end of December 2024, there was a slight improvement in the return on total capital compared to the previous periods, but the figure remained negative. The negative return on total capital in December 2024 suggests that the company still needs to enhance its operational efficiency and profitability to generate adequate returns on the capital employed.
Peer comparison
Dec 31, 2024