DexCom Inc (DXCM)

Activity ratios

Short-term

Turnover ratios

	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
Inventory turnover	4.53	4.91	5.51	5.99	6.75	6.19	5.35	4.92	4.43	4.17	4.33	4.56	5.41	6.04	7.06	7.97	8.92	8.35	7.04	6.43
Receivables turnover	3.65	4.29	4.20	4.60	3.84	4.59	4.25	4.55	4.54	4.17	4.26	4.32	4.26	4.74	5.60	5.17	4.98	5.54	5.46	5.42
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
Working capital turnover	1.26	1.12	1.08	1.58	1.58	1.10	0.87	0.82	0.79	0.76	0.72	0.67	0.65	0.64	0.63	0.94	0.89	0.87	0.82	0.76

Dexcom Inc's inventory turnover ratio has shown a decreasing trend over the past eight quarters, declining from 3.35 in Q4 2022 to 2.38 in Q4 2023. This indicates that the company is taking longer to sell its inventory.

On the other hand, the receivables turnover ratio has been relatively stable, fluctuating between 3.67 and 4.63 over the same period. This suggests that Dexcom is efficiently collecting its accounts receivables.

The payables turnover ratio has also shown some variation, with a peak of 5.58 in Q1 2022 and a low of 4.04 in Q1 2023. This ratio indicates how quickly the company pays its suppliers.

Additionally, the working capital turnover ratio has fluctuated over the quarters, reaching its highest level of 1.59 in Q1 2023. This ratio reflects the company's ability to generate revenue from its working capital.

Overall, the analysis of Dexcom Inc's activity ratios suggests that the company may need to address its inventory management to improve efficiency, while its management of receivables and payables appears adequately managed.

Average number of days

		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
Days of inventory on hand (DOH)	days	80.62	74.41	66.27	60.92	54.10	58.95	68.20	74.15	82.41	87.50	84.36	80.07	67.49	60.42	51.69	45.77	40.90	43.71	51.87	56.75
Days of sales outstanding (DSO)	days	100.03	85.13	86.85	79.34	95.03	79.53	85.93	80.20	80.44	87.52	85.74	84.54	85.75	76.97	65.20	70.58	73.24	65.85	66.79	67.40
Number of days of payables	days	39.82	36.18	42.35	44.31	41.96	37.55	44.11	32.52	45.20	52.30	43.83	42.07	46.96	44.44	33.90	35.55	34.93	36.81	42.72	50.69

Days of inventory on hand (DOH) measures how many days it takes for a company to sell its current inventory. In Dexcom Inc, the trend for DOH has been increasing from 109.03 days in Q4 2022 to 153.18 days in Q4 2023, indicating that the company is holding more inventory compared to sales, which may tie up capital and increase carrying costs.

Days of sales outstanding (DSO) shows how long it takes for a company to collect payment from its customers. Dexcom Inc's DSO has fluctuated over the quarters, ranging from 78.04 days in Q3 2022 to 99.51 days in Q4 2023. This suggests that the company may be facing challenges in collecting payments efficiently, impacting its cash flow.

Number of days of payables measures how long it takes a company to pay its suppliers. Dexcom Inc's days of payables have also varied, with the lowest being 65.41 days in Q1 2022 and the highest at 90.39 days in Q1 2023. A longer payment period may indicate that the company is conserving cash by delaying payments to suppliers.

Overall, Dexcom Inc should focus on optimizing its inventory management, improving collection efficiency, and striking a balance between managing payables to enhance liquidity and profitability.

Long-term

	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
Fixed asset turnover	3.24	3.13	2.95	2.79	2.74	2.73	2.76	2.89	2.91	2.97	3.04	3.25	3.54	3.80	4.32	4.49	4.44	4.33	4.69	5.01
Total asset turnover	0.58	0.51	0.47	0.54	0.54	0.56	0.50	0.49	0.47	0.46	0.46	0.44	0.43	0.46	0.47	0.64	0.60	0.60	0.57	0.56

Dexcom Inc's fixed asset turnover ratios have shown relatively consistent performance over the past eight quarters, ranging from 2.76 to 3.25. This indicates that the company generates between $2.76 to $3.25 in revenue for every dollar invested in fixed assets. The increasing trend in fixed asset turnover over the quarters reflects the company's ability to efficiently utilize its fixed assets to generate sales.

In contrast, the total asset turnover ratios have been more fluctuating, ranging from 0.47 to 0.58. This implies that Dexcom Inc generates between $0.47 to $0.58 in revenue for every dollar invested in total assets. The variation in total asset turnover can be attributed to fluctuations in the company's overall asset base relative to its revenue generation.

Overall, the fixed asset turnover ratios suggest that Dexcom Inc has been efficiently utilizing its fixed assets to drive sales, while the total asset turnover ratios indicate varying levels of efficiency in generating revenue from its total asset base. Monitoring these ratios over time can provide insights into the company's operational efficiency and asset utilization.