DexCom Inc (DXCM)

Working capital turnover

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Revenue	US$ in thousands	4,033,000	3,622,300	2,909,800	2,448,500	1,926,700
Total current assets	US$ in thousands	4,301,400	4,425,900	3,668,800	3,684,400	3,424,800
Total current liabilities	US$ in thousands	2,932,000	1,556,000	1,839,300	720,800	614,100
Working capital turnover		2.95	1.26	1.59	0.83	0.69

December 31, 2024 calculation

Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $4,033,000K ÷ ($4,301,400K – $2,932,000K)
= 2.95

The working capital turnover of DexCom Inc has shown a positive trend over the past five years, starting at 0.69 at the end of December 31, 2020, and increasing steadily to 2.95 by the end of December 31, 2024. This indicates that the company has been able to efficiently utilize its working capital to generate revenue. The peak value of 2.95 at the end of 2024 suggests a significant improvement in DexCom's working capital management, as it indicates that the company generated $2.95 in revenue for every $1 of working capital invested. Overall, the consistent increase in the working capital turnover ratio reflects DexCom's effective management of its working capital and efficient utilization of resources to drive revenue growth.