Tandem Diabetes Care (Tandem Diabetes Care) Inventory-to-Revenue : 0.77 (As of Dec. 2023)

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What is Tandem Diabetes Care Inventory-to-Revenue?

Inventory-to-Revenue determines the ability of a company to manage their inventory levels. It measures the percentage of Inventories the company currently has on hand to support the current amount of Revenue. Tandem Diabetes Care's Average Total Inventories for the quarter that ended in Dec. 2023 was $150.7 Mil. Tandem Diabetes Care's Revenue for the three months ended in Dec. 2023 was $196.8 Mil. Tandem Diabetes Care's Inventory-to-Revenue for the quarter that ended in Dec. 2023 was 0.77.

Tandem Diabetes Care's Inventory-to-Revenue for the quarter that ended in Dec. 2023 declined from Sep. 2023 (0.78) to Sep. 2023 (0.77)

A decrease in the Inventory-to-Revenue from one quarter to next indicates that one of these is occurring:

1. investment in inventory is shrinking in relation to revenue
2. revenue are increasing
No matter which situation is causing the reduction in the Inventory-to-Revenue, either one suggests that business's inventory levels and its cash flow are effectively managed.

Days Inventory indicates the number of days of goods in sales that a company has in the inventory. Tandem Diabetes Care's Days Inventory for the three months ended in Dec. 2023 was 132.88.

Inventory Turnover measures how fast the company turns over its inventory within a year. Tandem Diabetes Care's Inventory Turnover for the quarter that ended in Dec. 2023 was 0.69.

Tandem Diabetes Care Inventory-to-Revenue Historical Data

The historical data trend for Tandem Diabetes Care's Inventory-to-Revenue 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.

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Tandem Diabetes Care Inventory-to-Revenue Chart

Tandem Diabetes Care Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Inventory-to-Revenue

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0.10

0.11

0.09

0.11

0.18

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
Inventory-to-Revenue	Get a 7-Day Free Trial															0.49	0.72	0.71	0.78	0.77

Competitive Comparison of Tandem Diabetes Care's Inventory-to-Revenue

For the Medical Devices subindustry, Tandem Diabetes Care's Inventory-to-Revenue, along with its competitors' market caps and Inventory-to-Revenue 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 Inventory-to-Revenue Distribution in the Medical Devices & Instruments Industry

For the Medical Devices & Instruments industry and Healthcare sector, Tandem Diabetes Care's Inventory-to-Revenue distribution charts can be found below:

* The bar in red indicates where Tandem Diabetes Care's Inventory-to-Revenue falls into.

Tandem Diabetes Care Inventory-to-Revenue Calculation

Tandem Diabetes Care's Inventory-to-Revenue for the fiscal year that ended in Dec. 2023 is calculated as

	Inventory-to-Revenue (A: Dec. 2023 )
=	Average Total Inventories					/	Revenue
=	( (Total Inventories (A: Dec. 2022 )	+	Total Inventories (A: Dec. 2023 ))	/	count )	/	Revenue (A: Dec. 2023 )
=	( (111.117	+	157.937)	/	2 )	/	747.718
=	134.527					/	747.718
=	0.18

Tandem Diabetes Care's Inventory-to-Revenue for the quarter that ended in Dec. 2023 is calculated as

	Inventory-to-Revenue (Q: Dec. 2023 )
=	Average Total Inventories					/	Revenue
=	( (Total Inventories (Q: Sep. 2023 )	+	Total Inventories (Q: Dec. 2023 ))	/	count )	/	Revenue (Q: Dec. 2023 )
=	( (143.492	+	157.937)	/	2 )	/	196.796
=	150.7145					/	196.796
=	0.77

Tandem Diabetes Care (NAS:TNDM) Inventory-to-Revenue Explanation

An increase in Inventory-to-Revenue from one quarter to the next indicates that one of the following is happening:

1. investment in inventory is growing more rapidly than revenue
2. revenue are dropping
No matter which situation is causing the problem, an increase in the Inventory-to-Revenue may signal an oncoming cash flow problem.

Likewise, a decrease in the Inventory-to-Revenue from one quarter to next indicates that one of these is occurring:

More Related Terms:

1. Days Inventory indicates the number of days of goods in sales that a company has in the inventory.

Tandem Diabetes Care's Days Inventory for the three months ended in Dec. 2023 is calculated as:

Days Inventory	=	Average Total Inventories (Q: Dec. 2023 )	/	Cost of Goods Sold (Q: Dec. 2023 )	*	Days in Period
	=	150.7145	/	103.501	*	365 / 4
	=	132.88

2. Inventory Turnover measures how fast the company turns over its inventory within a year.

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

Inventory Turnover	=	Cost of Goods Sold (Q: Dec. 2023 )	/	Average Total Inventories (Q: Dec. 2023 )
	=	103.501	/	150.7145
	=	0.69

Tandem Diabetes Care Inventory-to-Revenue 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 » Inventory-to-Revenue

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