DexCom Inc (DXCM)

Working capital turnover

		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	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Revenue (ttm)	US$ in thousands	3,603,200	3,380,700	3,175,600	3,001,700	2,889,200	2,740,300	2,599,600	2,478,000	2,333,800	2,206,500	2,058,200	1,914,400	1,823,900	1,754,600	1,659,800	1,555,100	1,426,800	1,302,000	1,187,500	1,108,600
Total current assets	US$ in thousands	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	1,969,400	1,815,700	1,744,200	1,690,800
Total current liabilities	US$ in thousands	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	360,200	322,400	288,200	235,400
Working capital turnover		1.26	1.12	1.08	1.58	1.58	1.10	0.87	0.82	0.79	0.76	0.72	0.67	0.65	0.64	0.63	0.94	0.89	0.87	0.82	0.76

December 31, 2023 calculation

Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $3,603,200K ÷ ($4,425,900K – $1,556,000K)
= 1.26

Dexcom Inc's working capital turnover ratio fluctuated over the past eight quarters. In Q4 2023, the working capital turnover ratio was 1.26, which indicates that the company generated $1.26 in revenue for every dollar of working capital invested. This ratio was higher compared to Q3 2023 (1.13) and Q2 2023 (1.09), suggesting an improvement in efficiency in utilizing working capital to generate sales.

However, looking back to Q1 2023, the working capital turnover ratio was 1.59, indicating more efficient utilization of working capital compared to Q4 2023. Similarly, in Q4 2022, the ratio was also 1.59, suggesting a consistent level of efficiency in working capital management between the two quarters.

In contrast, the working capital turnover ratio was lower in Q2 2022 (0.89) and Q1 2022 (0.85), reflecting less effective utilization of working capital during those periods. Overall, Dexcom Inc's working capital turnover ratio has shown variability, underscoring the importance of carefully managing working capital to optimize operational efficiency and revenue generation.