DexCom Inc (DXCM)

Inventory turnover

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Cost of revenue	US$ in thousands	1,567,300	1,333,400	1,026,700	768,000	646,600
Inventory	US$ in thousands	542,600	559,600	306,700	357,300	234,700
Inventory turnover		2.89	2.38	3.35	2.15	2.76

December 31, 2024 calculation

Inventory turnover = Cost of revenue ÷ Inventory
= $1,567,300K ÷ $542,600K
= 2.89

Based on the inventory turnover data provided for DexCom Inc from December 31, 2020, to December 31, 2024, the company's inventory turnover ratio has shown some fluctuations over the five-year period.

- On December 31, 2020, DexCom Inc had an inventory turnover ratio of 2.76, indicating that the company turned over its inventory approximately 2.76 times during that year.
- By December 31, 2021, the inventory turnover ratio decreased to 2.15, suggesting a slight decrease in the efficiency of managing inventory.

- However, by December 31, 2022, the inventory turnover ratio improved significantly to 3.35, indicating that DexCom Inc was able to sell and replace its inventory more frequently during that year.

- The inventory turnover ratio then decreased to 2.38 by December 31, 2023, reflecting a lower rate of inventory turnover compared to the previous year.

- In the most recent data available, as of December 31, 2024, DexCom Inc's inventory turnover ratio increased to 2.89, indicating a slight improvement in inventory management efficiency.

Overall, DexCom Inc's inventory turnover performance has shown some variation over the five-year period, with fluctuations in the ratio highlighting changes in the company's ability to efficiently manage and sell its inventory. Further analysis and comparison with industry benchmarks may provide additional insights into the company's inventory management practices.