DexCom Inc (DXCM)

Fixed asset turnover

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Revenue	US$ in thousands	3,603,200	2,889,200	2,333,800	1,822,500	1,396,800
Property, plant and equipment	US$ in thousands	1,113,100	1,055,600	801,800	515,300	321,300
Fixed asset turnover		3.24	2.74	2.91	3.54	4.35

December 31, 2023 calculation

Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $3,603,200K ÷ $1,113,100K
= 3.24

Dexcom Inc's fixed asset turnover has shown fluctuations over the past five years. The ratio was 4.59 in 2019, indicating that the company generated $4.59 in revenue for every dollar of fixed assets invested. Subsequently, the ratio declined to 3.74 in 2020, before further decreasing to 3.05 in 2021. However, there was a notable improvement in 2022 with a ratio of 2.76, followed by a significant increase to 3.25 in 2023. This upward trend may suggest that Dexcom Inc has been more efficient in utilizing its fixed assets in generating sales revenue in the most recent year. Overall, it is essential for stakeholders to monitor this ratio to assess the company's effectiveness in utilizing its fixed assets for revenue generation.