DexCom Inc (DXCM)
Cash conversion cycle
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 126.36 | 153.18 | 109.03 | 169.81 | 132.49 |
| Days of sales outstanding (DSO) | days | — | — | — | — | — |
| Number of days of payables | days | — | — | — | — | — |
| Cash conversion cycle | days | 126.36 | 153.18 | 109.03 | 169.81 | 132.49 |
December 31, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 126.36 + — – —
= 126.36
The cash conversion cycle of DexCom Inc has seen fluctuations over the years based on the provided data. As of December 31, 2020, the company's cash conversion cycle was 132.49 days, indicating the time it takes to convert its investment in inventory back into cash. There was a significant increase in the cash conversion cycle to 169.81 days by December 31, 2021, suggesting a potential delay in receiving cash from sales compared to the previous year.
However, DexCom Inc improved its cash conversion cycle to 109.03 days by the end of December 31, 2022, indicating more efficient management of working capital and faster conversion of inventory into cash. The cycle then increased to 153.18 days by December 31, 2023, reflecting a slight slowdown in the company's cash conversion efficiency.
By December 31, 2024, DexCom Inc managed to reduce its cash conversion cycle to 126.36 days, indicating a better performance in converting its assets into cash compared to the previous year. Overall, DexCom Inc's cash conversion cycle has shown variability over the years, with efforts to improve efficiency evident in certain periods.
Peer comparison
Dec 31, 2024