DexCom Inc (DXCM)

Payables 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
Payables	US$ in thousands	276,400	237,900	196,000	163,300	102,300
Payables turnover		9.17	8.70	8.07	7.77	10.45

December 31, 2023 calculation

Payables turnover = Cost of revenue ÷ Payables
= $2,533,400K ÷ $276,400K
= 9.17

The payables turnover ratio for Dexcom Inc has fluctuated over the past five years. In 2019, the ratio was 5.32, indicating that the company paid its suppliers approximately 5.32 times during that year. The ratio decreased to 3.96 in 2020 before gradually increasing to 4.82 in 2023. This suggests that Dexcom Inc has been managing its accounts payable more efficiently in recent years, as it took less time to pay off its suppliers. A higher payables turnover ratio generally indicates that a company is paying its suppliers more quickly, which can be seen as a positive sign of strong liquidity and efficient working capital management. Overall, the trend in Dexcom Inc's payables turnover ratio shows improving efficiency in managing its accounts payable obligations.