DexCom Inc (DXCM)

Receivables turnover

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Revenue	US$ in thousands	3,603,200	2,889,200	2,333,800	1,822,500	1,396,800
Receivables	US$ in thousands	987,500	752,200	514,300	428,500	286,300
Receivables turnover		3.65	3.84	4.54	4.25	4.88

December 31, 2023 calculation

Receivables turnover = Revenue ÷ Receivables
= $3,603,200K ÷ $987,500K
= 3.65

The receivables turnover ratio for Dexcom Inc has shown a fluctuating trend over the past five years. In 2019, the ratio was the highest at 5.16, indicating that the company collected its accounts receivable approximately 5.16 times during the year. However, there has been a downward trend in the ratio since then, with values of 4.50 in 2020, 4.76 in 2021, 3.87 in 2022, and 3.67 in 2023.

A decreasing receivables turnover ratio may suggest that Dexcom Inc is taking longer to collect its accounts receivable, which could potentially indicate issues with its credit policies or the creditworthiness of its customers. The company may need to assess its collection procedures and credit extension practices to improve the efficiency of its accounts receivable turnover.

Furthermore, a lower receivables turnover ratio can tie up a company's cash flow in outstanding accounts receivable for a longer period, potentially affecting its liquidity and working capital management. Management should monitor this ratio closely and take appropriate actions to ensure timely collections and efficient management of receivables to support the company's financial health and operational performance.