DexCom Inc (DXCM)

Payables turnover

		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	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Cost of revenue (ttm)	US$ in thousands	2,533,400	2,445,700	2,319,400	2,193,000	2,069,300	1,925,700	1,817,000	1,684,500	1,582,600	1,465,500	1,381,500	1,320,600	1,269,300	1,212,400	1,167,200	1,131,500	1,069,000	1,005,500	829,700	650,200
Payables	US$ in thousands	276,400	242,400	269,100	266,200	237,900	198,100	219,600	150,100	196,000	210,000	165,900	152,200	163,300	147,600	108,400	110,200	102,300	101,400	97,100	90,300
Payables turnover		9.17	10.09	8.62	8.24	8.70	9.72	8.27	11.22	8.07	6.98	8.33	8.68	7.77	8.21	10.77	10.27	10.45	9.92	8.54	7.20

December 31, 2023 calculation

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

The payables turnover ratio measures how efficiently a company manages its trade payables by analyzing how quickly it pays its suppliers. A higher payables turnover ratio generally indicates that the company is paying its suppliers more quickly, which could signal strong cash flow management or good relationships with suppliers.

Analyzing Dexcom Inc's payables turnover ratio over the past eight quarters reveals some fluctuations. In Q3 2023, Dexcom had a payables turnover ratio of 5.07, the highest in the period under review, indicating that the company paid its suppliers relatively quickly during that quarter. Conversely, in Q1 2023, the payables turnover ratio was 4.04, the lowest in the period, suggesting a slight delay in payments to suppliers.

Overall, Dexcom's payables turnover ratio has fluctuated between 4.04 and 5.58 over the past eight quarters. This variability may be attributed to factors such as changes in payment terms with suppliers, seasonal variations in business operations, or shifts in the company's cash flow management strategies.

It is important for stakeholders to monitor Dexcom's payables turnover ratio over time to assess changes in the company's efficiency in managing its trade payables and to understand the impact of these changes on its financial performance and liquidity position.