DexCom Inc (DXCM)
Cash conversion cycle
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 124.04 | 141.25 | 141.96 | 152.11 | 153.18 | 148.03 | 133.29 | 124.28 | 109.03 | 116.02 | 136.73 | 149.12 | 169.81 | 180.04 | 174.10 | 160.43 | 132.49 | 116.22 | 97.44 | 89.08 |
| Days of sales outstanding (DSO) | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Number of days of payables | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Cash conversion cycle | days | 124.04 | 141.25 | 141.96 | 152.11 | 153.18 | 148.03 | 133.29 | 124.28 | 109.03 | 116.02 | 136.73 | 149.12 | 169.81 | 180.04 | 174.10 | 160.43 | 132.49 | 116.22 | 97.44 | 89.08 |
December 31, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 124.04 + — – —
= 124.04
The cash conversion cycle measures how long it takes for a company to convert its investments in inventory and other resources into cash flows from sales. For DexCom Inc, the cash conversion cycle has fluctuated over the years, starting at 89.08 days as of March 31, 2020, and reaching a peak of 180.04 days as of September 30, 2021. Since then, the trend has been declining, with the cycle standing at 124.04 days as of December 31, 2024.
A shorter cash conversion cycle is generally favorable as it indicates that the company is efficient in managing its working capital and generating cash from its operations. DexCom Inc experienced a notable improvement in its cash conversion cycle in recent periods, which suggests that the company has become more efficient in managing its inventory, receivables, and payables.
Analyzing the trend in the cash conversion cycle can provide insights into DexCom Inc's operational efficiency and liquidity management. It is important for investors and stakeholders to monitor this metric to assess how effectively the company is utilizing its resources to generate cash and support its business operations.
Peer comparison
Dec 31, 2024