Tandem Diabetes Care Inc (TNDM)
Financial leverage ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 952,658 | 1,052,780 | 905,137 | 716,415 | 326,110 |
| Total stockholders’ equity | US$ in thousands | 313,632 | 439,947 | 433,112 | 366,305 | 194,979 |
| Financial leverage ratio | 3.04 | 2.39 | 2.09 | 1.96 | 1.67 |
December 31, 2023 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $952,658K ÷ $313,632K
= 3.04
The financial leverage ratio of Tandem Diabetes Care Inc has been increasing steadily over the past five years, indicating a rising level of debt relative to equity in the company's capital structure. The ratio has grown from 1.67 in 2019 to 3.04 in 2023. This suggests that Tandem Diabetes Care Inc has been relying more on debt financing to support its operations and growth initiatives over time.
A financial leverage ratio above 1 indicates that the company has more debt than equity in its capital structure. While debt can be a cost-effective way to finance operations and growth, it also brings increased financial risk, as the company must meet interest payments and repayment obligations. Therefore, investors and creditors may closely monitor Tandem Diabetes Care Inc's financial leverage ratio to assess its ability to manage debt and potential risks associated with its capital structure.
Peer comparison
Dec 31, 2023