DexCom Inc (DXCM)

Inventory turnover

		Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020
Cost of revenue (ttm)	US$ in thousands	1,596,600	1,515,000	1,466,300	1,413,600	1,333,400	1,229,400	1,153,100	1,074,900	1,026,700	978,400	906,300	837,600	768,000	712,200	669,400	659,100	646,600	630,300	619,200	581,400
Inventory	US$ in thousands	542,600	586,300	570,300	589,100	559,600	498,600	421,100	366,000	306,700	311,000	339,500	342,200	357,300	351,300	319,300	289,700	234,700	200,700	165,300	141,900
Inventory turnover		2.94	2.58	2.57	2.40	2.38	2.47	2.74	2.94	3.35	3.15	2.67	2.45	2.15	2.03	2.10	2.28	2.76	3.14	3.75	4.10

December 31, 2024 calculation

Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $1,596,600K ÷ $542,600K
= 2.94

DexCom Inc's inventory turnover has exhibited fluctuations over the analyzed period, indicating the efficiency with which the company manages its inventory. The inventory turnover ratio decreased from 4.10 on March 31, 2020, to 2.38 on December 31, 2023, before showing a slight increase to 2.94 on March 31, 2024. This pattern suggests a potential inventory management challenge or changes in demand and sales during the period.

Overall, DexCom's inventory turnover ratio ranged between a high of 4.10 and a low of 2.03, with an average ratio of approximately 2.75, implying that inventory is turned over around three times a year on average. A higher inventory turnover ratio is generally preferable as it indicates that inventory is being sold quickly, reducing storage costs and the risk of obsolescence. Hence, DexCom may benefit from addressing factors affecting inventory turnover to improve operational efficiency and financial performance.