Tandem Diabetes Care (Tandem Diabetes Care) Gross Margin % : 47.41% (As of Dec. 2023)

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What is Tandem Diabetes Care Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. Tandem Diabetes Care's Gross Profit for the three months ended in Dec. 2023 was $93.3 Mil. Tandem Diabetes Care's Revenue for the three months ended in Dec. 2023 was $196.8 Mil. Therefore, Tandem Diabetes Care's Gross Margin % for the quarter that ended in Dec. 2023 was 47.41%.

The historical rank and industry rank for Tandem Diabetes Care's Gross Margin % or its related term are showing as below:

TNDM' s Gross Margin % Range Over the Past 10 Years
Min: 28 Med: 49.01 Max: 53.6
Current: 49.18

During the past 13 years, the highest Gross Margin % of Tandem Diabetes Care was 53.60%. The lowest was 28.00%. And the median was 49.01%.

TNDM's Gross Margin % is ranked worse than
57.79% of 796 companies
in the Medical Devices & Instruments industry
Industry Median: 53.575 vs TNDM: 49.18

Tandem Diabetes Care had a gross margin of 47.41% for the quarter that ended in Dec. 2023 => Durable competitive advantage

The 5-Year average Growth Rate of Gross Margin for Tandem Diabetes Care was -0.20% per year.

Tandem Diabetes Care Gross Margin % Historical Data

The historical data trend for Tandem Diabetes Care's Gross Margin % can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Tandem Diabetes Care Gross Margin % Chart

Tandem Diabetes Care Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Gross Margin %

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53.60

52.23

53.53

51.54

49.17

Tandem Diabetes Care Quarterly Data
	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23
Gross Margin %	Get a 7-Day Free Trial															52.39	48.95	51.93	48.35	47.41

Competitive Comparison of Tandem Diabetes Care's Gross Margin %

For the Medical Devices subindustry, Tandem Diabetes Care's Gross Margin %, along with its competitors' market caps and Gross Margin % data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

Tandem Diabetes Care's Gross Margin % Distribution in the Medical Devices & Instruments Industry

For the Medical Devices & Instruments industry and Healthcare sector, Tandem Diabetes Care's Gross Margin % distribution charts can be found below:

* The bar in red indicates where Tandem Diabetes Care's Gross Margin % falls into.

Tandem Diabetes Care Gross Margin % Calculation

Gross Margin is the percentage of Gross Profit out of sales or Revenue.

Tandem Diabetes Care's Gross Margin for the fiscal year that ended in Dec. 2023 is calculated as

Gross Margin % (A: Dec. 2023 )	=	Gross Profit (A: Dec. 2023 )	/	Revenue (A: Dec. 2023 )
	=	367.7	/	747.718
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(747.718 - 380.028)	/	747.718
	=	49.17 %

Tandem Diabetes Care's Gross Margin for the quarter that ended in Dec. 2023 is calculated as

Gross Margin % (Q: Dec. 2023 )	=	Gross Profit (Q: Dec. 2023 )	/	Revenue (Q: Dec. 2023 )
	=	93.3	/	196.796
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(196.796 - 103.501)	/	196.796
	=	47.41 %

A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.

Tandem Diabetes Care (NAS:TNDM) Gross Margin % Explanation

Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.

Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %

1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key

Tandem Diabetes Care had a gross margin of 47.41% for the quarter that ended in Dec. 2023 => Durable competitive advantage

Be Aware

If a company loses its competitive advantages, usually its gross margin declines well before its sales declines. Watching Gross Margin % and Operating Margin % closely helps avoid value trap situations.

Tandem Diabetes Care Gross Margin % Related Terms

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Tandem Diabetes Care (Tandem Diabetes Care) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Healthcare » Medical Devices & Instruments » Tandem Diabetes Care Inc (NAS:TNDM) » Definitions » Gross Margin %

Comparable Companies

Traded in Other Exchanges

TD5A:Germany

Address

11075 Roselle Street, San Diego, CA, USA, 92121

Website

https://www.tandemdiabetes.com

Tandem Diabetes designs, manufactures, and markets durable insulin pumps for diabetes patients. The firm first entered this market in 2012 and has since introduced multiple generations of pumps leading to its current t:slim X2 device. Nearly three quarters of total revenue is derived from the U.S., with the remainder primarily from other developed nations. The pumps themselves generate just over half of total sales, and another one third is from disposable infusion sets that need to be changed over every 2 to 3 days.

Executives

Dick Allen	director	11045 ROSELLE STREET, SAN DIEGO CA 92121
Shannon Marie Hansen	officer: SVP & General Counsel	C/O TANDEM DIABETES CARE, INC., 11075 ROSELLE STREET, SAN DIEGO CA 92121
Leigh Vosseller	officer: Senior Vice President and CFO	C/O TANDEM DIABETES CARE, INC., 11075 ROSELLE STREET, SAN DIEGO CA 92121
Kathleen Mcgroddy-goetz	director	C/O TANDEM DIABETES CARE, INC., 11075 ROSELLE STREET, SAN DIEGO CA 92121
Peyton R Howell	director	C/O TANDEM DIABETES CARE, INC., 11075 ROSELLE STREET, SAN DIEGO CA 92121
David B Berger	officer: GENERAL COUNSEL	11045 ROSELLE STREET, SAN DIEGO CA 92121
Malagueira Joao Paulo Falcao	director	C/O TANDEM DIABETES CARE, INC., 11075 ROSELLE STREET, SAN DIEGO CA 92121
Myoungil Cha	director	C/O TANDEM DIABETES CARE, INC., 11075 ROSELLE STREET, SAN DIEGO CA 92121
Kim D Blickenstaff	director, officer: PRESIDENT AND CEO	C/O MEDIVATION, INC., 201 SPEAR STREET, 3RD FLOOR, SAN FRANCISCO CA 94105
John F Sheridan	officer: EXECUTIVE VP AND COO	C/O TANDEM DIABETES CARE, INC., 11045 ROSELLE STREET, SAN DIEGO CA 92121
Christopher J Twomey	director	4767 NEXUS CENTRE DRIVE, SAN DIEGO CA 92121
Rebecca B Robertson	director	ONE SANSOME STREET, SUITE 1650, SAN FRANCISCO CA 94104
James Leal	officer: SVP, Operations	C/O TANDEM DIABETES CARE, INC., 11075 ROSELLE STREET, SAN DIEGO CA 92121
Elizabeth Anne Gasser	officer: EVP, Chief Strategy Officer	C/O TANDEM DIABETES CARE, INC., 11075 ROSELLE STREET, SAN DIEGO CA 92121
Susan Morrison	officer: CAO	11045 ROSELLE STREET, SAN DIEGO CA 92121