DexCom Inc (DXCM)

Inventory turnover

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Cost of revenue	US$ in thousands	2,533,400	2,069,300	1,582,600	1,269,300	1,069,300
Inventory	US$ in thousands	559,600	306,700	357,300	234,700	119,800
Inventory turnover		4.53	6.75	4.43	5.41	8.93

December 31, 2023 calculation

Inventory turnover = Cost of revenue ÷ Inventory
= $2,533,400K ÷ $559,600K
= 4.53

The inventory turnover for Dexcom Inc has fluctuated over the past five years. In 2019, the company had the highest inventory turnover ratio of 4.55, indicating that its inventory was sold and replaced 4.55 times during that year. This high turnover rate suggests efficient management of inventory levels.

Subsequently, there was a decline in the inventory turnover ratio in the following years. In 2020, the ratio decreased to 2.76, reflecting a slower rate of inventory turnover compared to the previous year. However, the ratio improved in 2021 to 2.15, although still lower than 2019 and 2020.

The inventory turnover ratio increased significantly in 2022 to 3.35, indicating a more efficient use of inventory during that year. However, in 2023, the ratio declined to 2.38, suggesting a decrease in the rate at which inventory was turned over.

Overall, Dexcom Inc's inventory turnover has shown variability, with higher ratios indicating better inventory management and faster turnover rates. The company may need to closely monitor and analyze its inventory levels and sales trends to optimize its inventory turnover efficiency in the future.