DexCom Inc (DXCM)

Total asset turnover

		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
Revenue (ttm)	US$ in thousands	4,033,000	3,954,000	3,934,800	3,801,800	3,622,300	3,403,000	3,197,600	3,022,500	2,909,800	2,792,800	2,673,400	2,572,300	2,448,500	2,319,200	2,169,900	2,026,600	1,926,700	1,820,600	1,716,000	1,600,600
Total assets	US$ in thousands	6,484,500	6,353,800	6,799,200	6,482,200	6,264,500	6,596,200	6,820,700	5,515,900	5,391,700	4,899,200	5,217,400	5,057,000	4,863,600	4,775,900	4,503,800	4,389,800	4,290,500	3,833,200	3,521,800	2,447,900
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

December 31, 2024 calculation

Total asset turnover = Revenue (ttm) ÷ Total assets
= $4,033,000K ÷ $6,484,500K
= 0.62

The total asset turnover ratio for DexCom Inc shows a declining trend from March 31, 2020, when it was 0.65, to December 31, 2024, where it stood at 0.62. This ratio indicates how efficiently the company is utilizing its assets to generate revenue. A higher total asset turnover ratio signifies that the company is generating more sales for each dollar of assets employed.

The dip in the ratio from 2020 to 2024 suggests that DexCom Inc may be facing challenges in effectively utilizing its assets to generate revenue. It is important for the company to analyze the reasons behind this trend and take necessary steps to improve asset utilization efficiency. Factors such as changes in business operations, investments in non-productive assets, or a decrease in sales could contribute to the decrease in total asset turnover ratio.

Going forward, DexCom Inc should focus on optimizing its asset management strategies to enhance the efficiency of asset utilization and drive improved financial performance. Monitoring and improving total asset turnover can help the company in maximizing sales generated from its assets and ultimately enhance shareholder value.