DexCom Inc (DXCM)
Activity ratios
Short-term
Turnover ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Inventory turnover | 2.89 | 2.38 | 3.35 | 2.15 | 2.76 |
| Receivables turnover | — | — | — | — | — |
| Payables turnover | — | — | — | — | — |
| Working capital turnover | 2.95 | 1.26 | 1.59 | 0.83 | 0.69 |
Inventory Turnover: DexCom Inc's inventory turnover has fluctuated over the years, ranging from 2.15 to 3.35. A higher inventory turnover ratio indicates that the company is selling its inventory more efficiently. Despite some variations, the overall trend shows improvement in inventory management efficiency.
Receivables Turnover: The data provided indicates that DexCom Inc's receivables turnover is not available for all the years. Receivables turnover is important as it shows how quickly a company collects cash from its credit sales. The absence of data might suggest that the company does not rely heavily on credit sales or that the information is not disclosed.
Payables Turnover: Similar to receivables turnover, data for payables turnover is also not available for DexCom Inc. This ratio helps in understanding how quickly a company pays its suppliers. Lack of information can make it challenging to assess the company's efficiency in managing its payables.
Working Capital Turnover: The working capital turnover has shown an increasing trend over the years, from 0.69 to 2.95. A higher working capital turnover ratio indicates that the company is generating more revenue per dollar of working capital. This improvement reflects DexCom Inc's ability to effectively utilize its working capital to drive sales growth.
Overall, the analysis of DexCom Inc's activity ratios suggests a general improvement in inventory management efficiency and working capital utilization, with limited information available for receivables and payables turnover.
Average number of days
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 126.36 | 153.18 | 109.03 | 169.81 | 132.49 |
| Days of sales outstanding (DSO) | days | — | — | — | — | — |
| Number of days of payables | days | — | — | — | — | — |
DexCom Inc's activity ratios indicate the efficiency of its operations in managing inventory, sales, and payables.
1. Days of Inventory on Hand (DOH):
- The trend in DOH shows fluctuations over the years. In 2022, the company had the lowest DOH at 109.03 days, indicating it was able to turn over its inventory more quickly. However, by 2021 and 2023, DOH increased to 169.81 days and 153.18 days, respectively, suggesting inventory management challenges during those periods. In 2024, DOH decreased to 126.36 days, showing some improvement in inventory turnover.
2. Days of Sales Outstanding (DSO):
- The data does not provide information on DSO for any year, which limits our ability to assess DexCom's efficiency in collecting accounts receivable. It would be important to obtain this data to evaluate the company's receivables management.
3. Number of Days of Payables:
- Similar to DSO, there is no information available on the number of days of payables for any year, preventing an analysis of how long DexCom takes to pay its suppliers. Understanding this metric is crucial to assessing the company's relationship with its creditors and liquidity management.
In conclusion, while DexCom's DOH data provides some insight into its inventory management efficiency, the lack of data on DSO and payables hinders a comprehensive assessment of the company's overall activity ratios.
See also:
Long-term
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Fixed asset turnover | — | — | 2.56 | 2.75 | 3.74 |
| Total asset turnover | 0.62 | 0.58 | 0.54 | 0.50 | 0.45 |
DexCom Inc's long-term activity ratios reflect the efficiency of the company's asset utilization over the years. The Fixed Asset Turnover ratio, which measures the company's ability to generate sales from its fixed assets, has shown a decline from 3.74 in 2020 to 2.56 in 2022, with missing data for 2023 and 2024. This suggests a decreasing trend in the efficiency of utilizing fixed assets to generate revenue.
On the other hand, the Total Asset Turnover ratio, which indicates how effectively the company is using all its assets to generate sales, has been improving steadily from 0.45 in 2020 to 0.62 in 2024. This indicates an enhancement in the overall efficiency of utilizing both fixed and current assets to generate sales over the years.
In conclusion, while DexCom Inc's efficiency in generating sales from fixed assets has decreased, the company has shown an improvement in utilizing its total assets to generate revenue, indicating a more effective overall asset management strategy in the long term.