DexCom Inc (DXCM)

Cash ratio

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Cash and cash equivalents	US$ in thousands	566,300	642,300	1,052,600	817,600	446,200
Short-term investments	US$ in thousands	2,160,000	1,810,000	1,360,000	1,890,100	1,087,100
Total current liabilities	US$ in thousands	1,556,000	1,839,300	720,800	614,100	360,200
Cash ratio		1.75	1.33	3.35	4.41	4.26

December 31, 2023 calculation

Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($566,300K + $2,160,000K) ÷ $1,556,000K
= 1.75

The cash ratio of Dexcom Inc has fluctuated over the past five years, ranging from a low of 1.42 in 2022 to a high of 4.50 in 2020. The ratio indicates the company's ability to cover its short-term liabilities with its available cash and cash equivalents. A higher cash ratio signifies a stronger liquidity position, as seen in 2020 when Dexcom had a ratio of 4.50. Conversely, a lower ratio like the one in 2022 may suggest a potential liquidity risk, although a ratio of 1.42 is still considered acceptable. Overall, Dexcom Inc has maintained a healthy cash position over the years, with the ratio showing some variability but generally remaining above 1.