DexCom Inc (DXCM)

Activity ratios

Short-term

Turnover ratios

	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
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
Receivables turnover	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—
Payables turnover	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—
Working capital turnover	2.95	1.56	1.26	1.26	1.26	1.13	1.09	1.59	1.59	1.12	0.89	0.85	0.83	0.79	0.76	0.71	0.69	0.67	0.65	0.97

DexCom Inc's inventory turnover ratio has shown a decline from 4.10 in March 2020 to 2.94 in March 2024, indicating a slower rate of inventory turnover. This could suggest either excess inventory levels or challenges in selling products efficiently.

The receivables turnover ratio is not available for analysis as the data is not provided, which limits the assessment of how effectively the company is collecting on its credit sales.

Similarly, payables turnover data is not available, so it is not possible to evaluate how quickly DexCom is paying off its suppliers.

On the other hand, DexCom's working capital turnover ratio has been improving steadily from 0.97 in March 2020 to 2.95 in December 2024. This indicates that the company is generating revenue more efficiently relative to the amount of working capital employed, which could be a positive sign of operational efficiency and financial management.

Overall, based on the available data, DexCom appears to have room for improvement in managing its inventory turnover, but it shows strong efficiency in utilizing its working capital. Further information on receivables and payables turnover would provide a more complete picture of the company's activity ratios.

Average number of days

		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
Days of inventory on hand (DOH)	days	124.04	141.25	141.96	152.11	153.18	148.03	133.29	124.28	109.03	116.02	136.73	149.12	169.81	180.04	174.10	160.43	132.49	116.22	97.44	89.08
Days of sales outstanding (DSO)	days	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—
Number of days of payables	days	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—

Based on the provided data, we can analyze DexCom Inc's activity ratios as follows:

1. Days of Inventory on Hand (DOH):
- The DOH indicates how many days, on average, inventory is held before being sold.
- DexCom's DOH has shown a fluctuating trend over the quarters, ranging from a low of 109.03 days to a high of 180.04 days.
- A decreasing trend in DOH indicates a more efficient management of inventory, while an increasing trend may suggest issues like overstocking or slowing sales.

2. Days of Sales Outstanding (DSO):
- Unfortunately, the data for DSO is not provided, which makes it impossible to analyze the efficiency of DexCom's accounts receivable collection process.
- DSO measures the average number of days it takes for a company to collect revenue from its sales.

3. Number of Days of Payables:
- Similar to DSO, data for the number of days of payables is not provided, preventing an analysis of DexCom's efficiency in paying its suppliers.
- A longer payment period may indicate better liquidity management, while a significantly short period could hint at potential cash flow issues.

In conclusion, while DexCom's inventory management appears to have varied over the quarters, the analysis of DSO and payables is limited due to the absence of data. Monitoring these activity ratios can provide insights into the company's operational efficiency and effectiveness in managing working capital.

Long-term

	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
Fixed asset turnover	—	—	—	—	—	2.95	—	2.81	2.56	2.79	2.84	3.00	2.75	2.78	2.82	2.94	3.74	3.94	4.47	4.62
Total asset turnover	0.62	0.62	0.58	0.59	0.58	0.52	0.47	0.55	0.54	0.57	0.51	0.51	0.50	0.49	0.48	0.46	0.45	0.47	0.49	0.65

The fixed asset turnover ratio for DexCom Inc has been gradually declining from 4.62 in March 2020 to 2.56 in December 2022. This indicates that the company is generating less sales revenue relative to its investment in fixed assets over the period analyzed.

On the other hand, the total asset turnover ratio has shown a mixed trend. It decreased from 0.65 in March 2020 to 0.45 in December 2020, suggesting a decrease in sales generated per total asset. However, it later started increasing and reached 0.62 in December 2024, indicating that the company has been more efficient in generating sales from its total assets in recent periods.

Overall, when considering both ratios, DexCom Inc appears to be facing challenges in efficiently utilizing its fixed assets to generate sales revenue. However, it has shown improvement in effectively utilizing its total assets to generate sales over the period covered in the financial data.