DexCom Inc (DXCM)

Working capital 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 current assets	US$ in thousands	4,301,400	4,262,800	4,848,400	4,620,700	4,425,900	4,698,400	5,002,900	3,767,400	3,668,800	3,398,500	3,808,700	3,746,600	3,684,400	3,656,200	3,474,200	3,445,100	3,424,800	3,237,100	3,033,000	1,995,700
Total current liabilities	US$ in thousands	2,932,000	1,734,500	1,722,200	1,594,200	1,556,000	1,678,600	2,069,700	1,865,000	1,839,300	900,500	807,000	711,400	720,800	734,900	600,700	604,100	614,100	506,400	400,100	342,800
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

December 31, 2024 calculation

Working capital turnover = Revenue (ttm) ÷ (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 exhibited a fluctuating trend over the reporting periods from March 31, 2020, to December 31, 2024. The metric started at 0.97 in March 2020 and experienced ups and downs before showing an increasing trend in recent periods. It reached a peak of 2.95 by December 31, 2024.

A higher working capital turnover ratio indicates that the company is efficiently managing its working capital to generate sales. In the case of DexCom Inc, the increasing trend suggests that the company has been able to improve its efficiency in utilizing its working capital to generate revenue over time.

However, it is important to note that a very high working capital turnover ratio could also indicate aggressive management of working capital, which may not always be sustainable in the long term. Monitoring this ratio along with other financial metrics can provide a more comprehensive view of the company's overall financial health and operational effectiveness.