TNDM

What You Should Know

Tandem Diabetes Care, Inc. designs and sells insulin-delivery systems — including its t:slim X2 and Mobi automated insulin pumps and related software — that help people with diabetes manage their condition. Selling medical devices that treat a chronic illness is a permissible activity, so the business-activity screen passes. The verdict depends on the balance sheet: Tandem has historically funded growth with convertible senior notes, so confirm the total-debt-to-market-cap ratio against the 33% threshold using the latest filings — the deciding screen — and confirm the receivables ratio against the board's threshold. Interest income on the company's cash and investment balances should be checked against the 5% threshold and the corresponding portion of returns purified. Assuming the ratios hold, TNDM is generally screened as halal, with routine purification of minor interest income.