DexCom Inc (DXCM)

Cash ratio

		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
Cash and cash equivalents	US$ in thousands	566,300	643,700	1,194,900	623,200	642,300	698,100	735,400	716,000	1,052,600	1,444,300	1,158,800	733,800	817,600	673,500	530,000	584,600	446,200	395,600	709,200	1,285,100
Short-term investments	US$ in thousands	2,160,000	2,600,000	2,440,000	1,940,000	1,810,000	1,670,000	2,019,400	1,873,000	1,360,000	1,083,700	1,426,100	1,898,800	1,890,100	1,930,300	1,978,800	925,900	1,087,100	1,034,300	668,300	72,900
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
Cash ratio		1.75	1.93	1.76	1.37	1.33	2.63	3.41	3.64	3.35	3.44	4.30	4.36	4.41	5.14	6.27	4.41	4.26	4.44	4.78	5.77

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 been fluctuating over the past eight quarters, ranging from a low of 1.42 in Q4 2022 to a high of 4.02 in Q1 2022. The cash ratio provides insight into a company's ability to cover its short-term liabilities with its available cash and cash equivalents. A higher cash ratio indicates a stronger ability to meet these obligations without relying on external sources.

In the most recent quarter, Q4 2023, the cash ratio stands at 1.84, which indicates that Dexcom Inc has $1.84 in cash and cash equivalents for every $1 of its current liabilities. This suggests that the company has a moderate level of liquidity to meet its short-term obligations. However, the decreasing trend in the cash ratio from Q2 2022 to Q4 2023 may warrant further analysis to understand the reasons behind this decline and whether it is a cause for concern in terms of the company's liquidity position.